IHS Markit’s New Cloud-Based Platform Aims To Transform Derivatives Post Trade Processing

Blockchain, News | November 7, 2018 By:

Financial services firm IHS Markit has announced that MarkitSERV has introduced a new cloud-based technology for post trade processing of OTC derivatives trades.

MarkitSERV provides end-to-end trade processing and workflow solutions that support all participants in OTC trading from post-trade notices of execution, trade confirmation and allocations to clearing and reporting. It supports a broad range of asset classes and products, working continuously with the global financial industry to ensure swift and efficient coverage of new products. In 2017, the service processed an average of 130,000 transaction events per day.

Called TradeServ, the new platform, launched in September of this year, is the product of IHS Markit strategic technology vision to consolidate their post trade services onto one modern cloud enabled platform that will improve service delivery and the customer experience. TradeServ, a modern platform as a service (PaaS), uses microservices architecture and cloud infrastructure to make the platform highly flexible, scalable and reliable. It provides customers with better access to trade data, easier integration and more continuous service upgrades in response to changing regulation and industry needs. The company plans to migrate FX options, spots and forwards to the platform in the first half of 2019.

“MarkitSERV has always been the innovator that brings progress to the OTC derivatives markets,” said Brad Levy, CEO of MarkitSERV. “Our success shows how markets embrace new technology when it is deployed through a trusted network. Beginning in FX, TradeServ will enable us to be even more responsive to customer needs and make it easier for users to interact with their data and customize workflows.”

In mid-2019, the new platform will expand to credit derivatives and will use blockchain-compatible technology to supply initial trade and trade lifecycle data to the the Depository Trust & Clearing Corporation (DTCC)’s credit derivatives blockchain solution, the Trade Information Warehouse (TIW).

“The architecture and technology we are deploying in TradeServ make our platforms much more agile and responsive to clients’ requirements,” said Claire Lobo, senior vice president and product head for MarkitSERV. “We’ve built our new platform as a series of interoperable apps, so that when regulation changes or a new standard like SOFR is deployed in the market, we update specific apps which is much easier and faster than updating traditional software.”