OSTTRA is enhancing its network to give market participants a real-time view into the status of Exchange Traded Derivative (ETD) trades being cleared through Eurex.
The enhanced connectivity will enable Eurex to send investment managers booking confirmations for their allocations via OSTTRA ClientLink for ETD, delivering live status updates on which trades have been given up, claimed and cleared – providing trade certainty in fast-moving markets.
Eurex Clearing plans to become the second central clearing counterparty (CCP) after the CME to connect to OSTTRA ClientLink for ETD, the post-trade network of close to 200 market participants. Real-time information on trade status is increasingly important in futures markets as more frequent volume spikes create bottlenecks in processing flows. A third CCP is close to completing connectivity to the network and more are lined up for delivery in 2023.
OSTTRA has also worked closely with Eurex on an additional project to enable clients to manage the Next Generation ETD Contracts currently under development by Eurex and scheduled to go live in March 2023. OSTTRA ClientLink for ETD users are already able to test the new functionality.
Melanie Weber, SVP Derivatives Clearing Design at Eurex Clearing, said in a statement: “By receiving real-time updates, clients will be able to manage operational risk and capital more effectively throughout the trading day. In parallel to the ETD transformation initiative, OSTTRA and Eurex Clearing are aligned on the Next Generation ETD Contracts, which Eurex is implementing to allow more than one expiration per month under a single product ID, providing clients with additional flexibility.”
“The ETD industry needs greater visibility and efficiency as demonstrated by the ongoing commitment of industry participants to the FIA DMIST standards development. In the past, volumes would increase as a reaction to significant macroeconomic events. Now, every month, we are consistently seeing volume spikes, thus urgently increasing demand for a real-time solution that provides a window into every aspect of the give up and allocations workflow”, said Joanna Davies, head of FX and Securities at OSTTRA, in a statement. “The ability to support the entire ETD community with this new flexibility and transparency presents a huge leap in the evolution of both the ETD trade allocation process and the transformation of the ETD workflow.”
OSTTRA, the home of MarkitServ, Traiana, TriOptima and Reset, brings processes and networks together along with expertise to solve post-trade challenges in the global financial markets.