Clearing Connectivity

In light of uncleared margin rules (UMR) impacting buy-side clients and increased market adoption of central clearing, TradeNeXus has developed a tailored solution to facilitate asset manager adoption of FX clearing into their workflow.

The challenge for asset managers

The voluntary nature of FX clearing has meant that there has not been a fixed transition date meaning adoption has been piecemeal with limited technology developments to support this new workflow. Different from their bank counterparts, asset manager determination to clear may vary by a number of factors such as fund, counterparty and currency. Additionally, FX clearing has meant bifurcated operational setup and management from trade enrichment, matching to custodial messaging.

Solution

TradeNeXus Clearing Connectivity allows for asset manager adoption of FX clearing into their workflow with reduced disruption to existing trade operations and options for no additional integrations. Clients can either identify incoming trades for clearing or customize rules in TradeNeXus to identify trades for TradeNeXus to submit direct to CCP for clearing.

Benefits

• No change to execution

• No change to OMS required to tag trades for clearing

• Management of clearing trades and status monitoring within TradeNeXus

• Automated and direct submission of trades to CCP

Features

• User defined rules engine to determine transactions to clear and clearing broker (FCM) selection

• Rules are set at allocation level allowing for mix of cleared and bilateral allocations

• Dedicated Clearing Queue with filterable querying and full audit trail in a consolidated screen

• Enriched cleared SWIFT messages to Custodians and agents

• Ability to resubmit or send trades to bilateral workflow