OCC has appointed MarkitSERV as a trade source and middleware provider for over-the-counter (OTC) equity derivative trades to be cleared by OCC. OTC equity derivative trades, bilaterally negotiated and placed on MarkitSERV’s post-trade processing platform for affirmation/confirmation, will be seamlessly routed to OCC for central counterparty clearing services. OCC will guarantee and novate trades, severing the link between the original parties to the trade and placing itself as the buyer to every seller and the seller to every buyer. It will also guarantee performance of OTC equity derivative trades between clearing members, decreasing counterparty credit risk for market participants.
Click here for the release from Market Wire.