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Northern Trust strengthens OTC derivative services

Posted: 28 May 2009

Northern Trust has announced that it has strengthened its platform for over-the-counter (OTC) derivatives processing through an agreement with Markit, a financial information services company, to enhance post-trade processing including reconciliation and confirmation services for OTC derivatives.

The agreement will service capabilities for OTC derivatives to Northern Trust custody and Investment Operations Outsourcing clients through an integrated derivatives processing platform. The enhanced capabilities extend Northern Trust's core platform for daily processing and lifecycle management, Misys Summit FT, an OTC derivative processing application offered by Misys.

"We are committed to helping our clients reduce operational risk throughout the post-trade lifecycle," said Peter Cherecwich, chief operating officer for Corporate & Institutional Services at Northern Trust. "The addition of Markit's confirmation matching and reconciliation services will allow us to provide them with greater transparency and efficiency after the point of trade."

Markit will provide trade confirmation and position reconciliation services through its Trade Manager, PortRec, and Valuations Manager platforms in addition to independent portfolio valuations. Northern Trust expects to roll out these services in the second and third quarter this year.

Markit Trade Manager offers electronic tie-out, affirmation and confirmation workflow tools including straight-through-processing connectivity to DTCC DerivSERV and Markit Wire, along with paper confirmation workflow, novation consent and allocation.

 

 

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