FCMs continue to expand their use of OSTTRA Clearing Connectivity and OSTTRA LimitHub as a result of increased demand for FX Client Clearing. Adoption of the FX service allows FCMs to take advantage of cross-asset CCP Connectivity, at what could prove to be an inflection point for FX clearing as volumes continue to increase. The FCM can provide pre-trade or post-trade approval for FX, regardless of whether trades are executed in a cleared liquidity pool, and/or off venue.
“We’re pleased that our clearing connectivity and credit risk services are helping more firms adopt client clearing, in the face of UMR and additional capital efficiency drivers.”
Steve French, Head of Product Strategy – OSTTRA
The OSTTRA Clearing Connectivity service supports the full clearing lifecycle from trade submission to trade novation, including the client trade take-up workflow used by an FCM in conjunction with OSTTRA LimitHub. Established in 2013 in response to CFTC regulations, the OSTTRA LimitHub service supports both pre and post-trade limit checking for OTC cleared instruments including Rates, CDS and FX NDFs and is utilised by 18 FCMs supporting 900 Clients across 24 trading venues, at 5 CCPs.
“UBS chose to adopt the OSTTRA Clearing Connectivity and OSTTRA LimitHub services as part of our workflow for ForexClear transactions to streamline and scale up clearing processes as part of our Next Generation platform integration.”
Nick Short, ETD Client Consulting – UBS