Patrick Philpott

Specifically, the offering works from price discovery through to execution, booking, and risk management within the FX options market – combining SpectrAxe’s price discovery and execution CLOB with OSTTRA’s post-trade network.

Patrick Philpott, product design lead, FX and securities at OSTTRA, said: “Automating the post-trade workflow is crucial for enhancing operational efficiency and reducing risk. Our combined expertise provides market participants with a streamlined, automated process that not only saves time but also significantly reduces the potential for errors.” 

According to SpectrAxe, it is the first and only electronic CLOB trading platform that facilitates all-to-all trading for OTC FX options.

Through the connection to OSTTRA’s FX trade processing network, traders will receive real-time trade notifications booked directly into their risk systems.

Alvin Chopra, chief operating officer at SpectrAxe, asserted that the partnership with OSTTRA marks a significant milestone for the FX options market: “By combining our price discovery and execution capabilities with OSTTRA’s robust post-trade solutions, we are setting a new standard for efficiency and transparency. 

“This end-to-end service reduces the complexity and time traditionally associated with trade booking and risk management, offering unparalleled benefits to our clients.”

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The launch of the new OSTTRA service follows the Bank for International Settlements’ Committee on Payments and Market Infrastructures (CPMI) advocated an increase in the adoption of PvP in FX transactions to reduce FX settlement risk.

The new PvP service will be delivered on DLT from Baton Systems and will help increase market wide access to PvP, addressing FX settlement risk concerns.

Flows not currently settled on CLS, including non-CLS eligible transactions such as offshore Chinese renminbi, will be the main focus of the service.

Bank and non-bank market participants will also have improved flexibility to settle FX transactions intraday, without being tied to the CLS cut-off window.

OSTTRA stated that it is intended for the service to evolve to include settle-to-market functionality, significantly reducing derivative counterparty exposures, therefore reducing the regulatory capital required under SA-CCR (Standardised Approach to Counterparty Credit Risk).

“There’s huge scope for further post-trade efficiencies across OTC asset classes: this new service represents an important milestone in the evolution of our FX network, extending existing workflows to reduce settlement risk for thousands of OSTTRA clients,” said Chris Leaver, chief strategy and marketing officer at OSTTRA.

As part of the terms of the partnership, OSTTRA will take on the operation of Baton’s Core-FX service, including administration of the rulebook, which governs the end-to-end process and the secure orchestration of funds, alongside providing the framework for achieving final settlement.

Early adopters of Core-FX, HSBC and Wells Fargo, will join the OSTTRA operated serving during the first half of this year.  

“Through this strategic partnership, we will jointly accelerate and globally scale access to PvP settlement whilst enabling the Baton team to continue innovating and deploying operationally resilient solutions that deliver modern, cloud-based interoperable technology stacks that make our markets more inclusive, safer, and more efficient,” said Arjun Jayaram, founder and chief executive of Baton Systems.

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As we peer into the crystal ball for 2024 trading, a notable shift is anticipated with the adoption of T+1 settlement for US equity transactions. This transition is poised to reshape the pace and efficiency of equity trading, promoting quicker settlement cycles. It’s fully expected that the spotlight will turn towards the foreign exchange element, often deemed the least loved asset class. 

Asset managers and traders are expected to re-evaluate FX markets, seeking evolution from the industry to source liquidity later in the trading day around the US close. Concurrently, the need for market participants to embrace technology becomes increasingly apparent. Automation, artificial intelligence, and data analytics are anticipated to play pivotal roles in refining trading strategies and navigating the complexities of across asset classes in this tech-driven financial landscape of 2024.

Daniel Chambers, head of data and analytics, BidFX (an SGX company)

This year has seen investors hanging on every word uttered by central banks around interest rates. Changes in interest rates inevitably drive FX markets. Depending on how markets react to monetary policy next year, and whether volatility returns to FX, there will be an even greater need to actively assess liquidity in a much more granular way. That said, even if FX markets are more benign in the New Year, this will not put a stop to the general trend of hedge funds and asset managers seeking more precise insights from their liquidity providers. 2024 will see investment managers ask why their FX flow has been directed to certain counterparties, rather than passively accepting the liquidity provider’s perspective.

Rather than simply looking at FX flow distribution, investment managers will be demanding insight into the exact rationale behind a certain bid/offer price being offered up at 11:55am just prior to the Bank of England’s rate decision. They will also want to know who is providing the tightest spreads at that exact time, in addition to identifying those at the top of the order book and those displaying a price skew.

Basu Choudhury, head of partnerships and strategic initiatives, OSTTRA

One of the big challenges for 2024, assuming the successful operational migration over to T+1 for US securities in May, is how will the FX markets (execution venues, makers and takers, intermediaries) react to the compression of execution times in the context of constrained settlement relationships? What will this imply for post-trade processing (matching and settlement) and provisioning of credit, the life blood in FX markets? The shortening of the settlement cycle for US equities and bonds brings settlement risk into sharp focus for FX participants. What challenges will Asian and European asset managers face with their FX overlay process? It is likely that currency risks and costs will increase for the end customer.

When buying US stocks, from an FX perspective, in order to fund the purchase of the stocks, the investment manager will need to convert their Singapore dollars into US dollars within a compressed timeframe. Therefore, to mitigate the risk of failing to settle due to not having enough dollars to pay for the stocks, some key questions will need to be addressed. For instance, at the time they need to execute FX transactions which liquidity pool and how many counterparties can they execute with in order to acquire the USD in time for DvP settlement?

Vikas Srivastava, chief revenue officer, Integral

The introduction of T+1 in North America in May 2024 understandably occupies the thinking of technology officers and heads of desks for their FX trading activities. The challenge primarily sits with those asset managers in Europe and APAC trading in US markets who will have a matter of hours to match and settle both the equities and FX leg of the trade in order to settle T+1.

The only real solution to this issue is automation of trading workflows. Banks should see this as an opportunity to better serve their clients in their hour of need by directly embedding their services into their buy-side clients’ workflows. Banks should be looking to partner with technology firms that enable them to embed their FX services via API in their clients’ processes.

The post The TRADE predictions series 2024: Foreign exchange, the regulatory impact appeared first on The TRADE.

Peter Welsby, senior multi-asset trader, Manulife:

Paul Houston, global head of FX products, CME Group: As volatility has returned to FX this year, liquidity has become more of a premium to market participants. More and more OTC market participants will be turning to futures and options listed on all-to-all streaming electronic order book for both price discovery and differentiated liquidity in 2023. The final phase of UMR in September was a key milestone for FX market structure, but it will take time for market participants to adapt. We have already seen that there are potentially significant margin savings to be made from trading centrally cleared listed FX options versus traditional uncleared OTC FX options for those impacted. The reopening of the annual AANA calculation window in March 2023 may act as a further catalyst for investment managers to alter their approach. FX futures are not included in the ANNA calculation, making them a helpful complement to FX forwards without impacting the threshold.

Joanna Davies, head of FX and securities, OSTTRA: Global volumes hitting record highs reinforces why the industry needs to work together to solve the exchange traded derivatives (ETD) workflow conundrum once and for all in 2023. When volumes rise, the operational risk and capacity burden on market participants intensifies. Even if an asset manager is highly efficient in the allocation process during times of peak volumes, there could still be multiple allocations being communicated within minutes of the market closing. This creates a myriad of problems, which the industry continues to wrestle with. Overcoming this longstanding issue requires continued industry wide collaboration on designing the workflows with asset managers, executing brokers, and clearing brokers. As we have always advocated, the industry needs to work together to solve the longstanding issues around the allocation workflow. It is, frankly, in no market participants interest for there to be a bifurcation of the ETD post-trade workflow – as this only compounds the problem. If one believes in evolution, then the ETD community can leverage a solution today – to finally overcome this issue next year.

Claude Goulet, CEO of Siege FX: Against a backdrop of rising inflation and interest rates, the ongoing economic squeeze will set the tone for FX trading priorities in 2023. The underlying trend for traders to re-double efforts towards operational efficiencies and cost savings along the entire trade lifecycle will persist, but we expect capital utilisation considerations to become significantly more prominent as part of this exercise. We also expect this latter point to trigger a more balanced approach when further reviewing FX processes to ensure improved outcomes across both the buy-side and banks.

The focus on demonstrating best execution, which entails the need for better data, as well as traders looking to minimise their market impact will also be recurrent themes.  As a result, automated solutions such as FX algos will continue to experience growth, alongside the development of a broader range of available strategies for market participants. Finally, we think 2023 could mark an important point for digital assets. As the underlying infrastructure continues to develop towards that of fiat FX markets, we expect to see the first signs of real institutional adoption. That said, we do not expect the beneficiaries to be crypto currencies, but rather CBDC and other tokenised version of more traditional assets.

The post The TRADE predictions series 2023: Foreign exchange, part two appeared first on The TRADE.

DTCC

Earlier this year, the Depository Trust & Clearing Corporation’s (DTCC) went live with its distributed ledger technology (DLT) based settlement platform in a parallel production environment, processing up to 160,000 transactions per day. Named Project Ion, the platform has been in the works since May 2020, with a view to support a netted T+0 settlement cycle, as well as T+2, T+1 and extended cycles.

Going live in parallel to existing settlement infrastructure, the project is processing an average of over 100,000 bilateral equity transactions per day, and almost 160,000 transactions on peak days. The Depository Trust Company’s (DTC) classic settlement systems remaining the authoritative record. Project ION has been developed in collaboration with the likes of BNY Mellon, Citi and JP Morgan.

Elsewhere, DTCC Institutional Trade Processing (ITP) provides an open, post-trade infrastructure that aims to remove redundancies and manual processing across asset classes in an effort to create a place where users can manage the entire trade lifecycle, from post-execution to settlement, on one platform.

Deutsche Börse

Deutsche Börse Group’s clearing houses, Eurex Clearing AG and European Commodity Clearing AG, act as central counterparties, i.e. as buyer to each seller and as seller to each buyer, to minimise credit default risk. The clearing houses offer efficient clearing of a wide range of transaction types, both on-exchange and over-the-counter (OTC).

Deutsche Börse recently acquired the North American Nodal Exchange by the EEX Group, adding a third clearing house, Nodal Clear, to its roster.

 Towards the end of last year, Deutsche Börse rolled out a major technology overhaul with the launch of digital post-trade platform. The fully digital post-trade platform provides same-day-issuance and paperless, automated straight-through processing for the entire value chain of issuance, custody, settlement, and asset servicing for digital securities.

Working with distributed ledger technology (DLT) specialist, Digital Asset, as a partner on the project, the German exchange group’s new initiative uses a cloud-backed and DLT-ready platform to enable the digitisation of financial products with continuing access to both existing central and distributed infrastructures and markets.  

Euronext

Euronext serves as the largest pan-European exchange and market infrastructure, connecting seven markets across the continent. The last year has proved fruitful for the exchange with surging trading volumes alongside a series of successful acquisitions.  

In August, Euronext reported a particularly ‘solid’ Q2 driven by the sustained dynamism of non-volume activities and of trading operations. The exchange reported a 14% increase in revenue and income in Q2 of this year, compared to the same period last year, which reached €374.7 million – driven by the growth of non-volume related business and trading activities.

Non-volume related revenue accounted for 59% of Euronext’s Q2 total revenue this year, while trading revenue grew to €129.2 million, a 15.6% increase compared to the same period last year – a result linked to robust performance across all asset classes in a volatile market environment. Growth was also driven by the recent Borsa Italiana acquisition, which also bumped up the exchange’s strong Q1 results.

Elsewhere, Euronext reported that net income, share of the parent company shareholders was up 37.2% to €118.9 million, an increase by €32.2 million compared to the same period last year.

LCH

Global clearing house LCH, which is part of the post-trade division of London Stock Exchange Group (LSEG), has had an impressive year with several revenue increases across its business. LCH continues to partner with market participants globally to offer clearing services and provide risk management capabilities across a range of asset classes, including OTC and listed interest rates, fixed income, FX, CDS, equities and commodities.

The clearing house has helped reduce systemic risk and strengthen stability in financial markets alongside allowing participants to benefit from capital and operational efficiencies. In 2021, LSEG post-trade experienced improved revenue figures, with total income rising to £483 million, which was an increase by 8.5% compared to 2022. This comprised of £191m for OTC derivatives; £122m for securities and repo; £49m for non-cash collateral and £121m for net trade income (NTI). Elsewhere, LCH has seen growth across its services and record clearing activity in H1 2022.

OSTTRA

OSTTRA was formed in 2021 through the combination of four businesses that have been involved in the post-trade for over 20 years, namely MarkitServ, Traiana, TriOptima and Reset. The combination of these businesses allows OSTTRA to play a role in supporting global financial markets, connecting thousands of counterparties via its multi-asset networks that support the post-trade lifecycle from trade capture, through portfolio optimisation, to clearing and settlement services.

OSTTRA boasts over 9,000 connections on its network, including major banks, investment managers and clearing houses. The firm processes over 80 million trades monthly, including matching, confirming and booking transactions, managing credit limits and reconciling portfolios. Every second, OSTTRA performs over 10 trillion calculations, optimising counterparty risk, margin and capital efficiency.

As a company, OSTTRA looks to keep pace with market reforms. Through ongoing dialogue with regulators and market participants, OSTTRA responds to new regulatory mandates with standardised solutions and workflows that minimise costs and compliance risks for its customers. 

Elsewhere, to manage market volatility, OSTTRA continually works with its client base to automate and streamline new steps in post trade workflows to improve efficiency and reduce operational risk during peak market volumes. 

The post Leaders in Trading 2022: Meet the nominees for…. Outstanding Post-Trade Services Provider appeared first on The TRADE.

UMR Phase 6 will have the biggest impact on the buy-side yet, with approximately 1,100 firms being affected by this final chapter of the regulation.

Over the years, firms with the largest non-cleared portfolios including major bank groups, global dealers and select buy-side firms were affected by the first three phases of UMR. However, since phase 4, the buy-side has been gradually phased into the Standard Initial Margin Model (SIMM) calculations.

As UMR transitioned from Phase 4 to Phase 5, the Aggregate Average Notional Amount (AANA) decreased from $750 billion to $50 billion, resulting in what was the first significant impact on the buy-side, with a much greater number of firms being brought into scope of the regulation.

This number increases with the implementation of Phase 6, as firms with an AANA above $8 billion, or an equivalent measure in non-USD jurisdictions, will now be impacted.

Phase 6 firms did, however, have the benefit of a greater deal of understanding in relation to achieving compliance when compared to previous phases, mainly because they had a reference point from firms who were impacted by previous phases.

“The final phase of UMR sees record numbers of firms pulled into scope, particularly in the investment manager community. However, these phase six firms benefit hugely, both from off the shelf tools and services now available, and lessons learned in earlier phases,” said Neil Murphy, business manager at TriOptima, OSTTRA.

“The market has coalesced around standardised tools in terms of calculation, reconciliation and use of the SIMM model, while new options for Initial Margin (IM) monitoring have removed some of the day one pressures for in-scope organisations.”

As a result of being pulled into scope by previous UMR phases, major investment banks have the advantage of being sophisticated and experienced in the realm of calculation and exchanging initial and variation margin, as well as resolving margin disputes with their larger counterparties. With Phase 6 coming into play, major investment banks will now be faced with dealing with smaller investment managers who are currently not as sophisticated, as a result of different priorities and fewer resources to allocate to operations. Phil Slavin, chief executive of Taskize, noted that in many cases, the result of this will be a higher number of margin disputes.

“While efforts have been made to ensure that the margin exchange process can take place as smoothly as possible in the immediate aftermath of the 1 September date, banks will need to ensure more efficient resolution of margin disputes with those firms less familiar with the process. They will also need to be aware of the fact that unforeseen volatility in OTC markets – as we have seen already in 2022 – could bring more investment managers above the AANA threshold, which would lead to even more instances of margin disputes.

“Reverting to email as a means of resolving this will not be possible, as collateral teams could find themselves buried under unmanageable and inefficient email traffic. As firms muddle through the initial implications of phase 6, specific tailored workflows designed to help firms manage and accelerate collaboration across operations teams need to be adopted to ensure UMR does not become an operational headache.”

Looking at the consequences of not complying to the regulation in time, firms were warned that they may not be able to trade bilateral derivatives with their dealer counterparts – resulting in firms being constrained in terms of access to the market.

However, Paul Houston, global head of FX products at CME Group, noted that the final phase of UMR is symbolic as opposed to ‘a big bang moment’. “Ultimately, the final phase go-live means trades done on or after this date will still count – meaning we are unlikely to see an immediate impact.

“However, UMR will start to act as a catalyst for a new category of investment managers to alter their approach, which market participants will see the impact of over time. Increased usage of cleared alternatives to bilateral FX options for initial margin efficiencies is likely to be a prominent factor moving forward, as well as the ongoing move to listed FX futures away from FX forwards.”

Speaking on today’s go-live of UMR Phase 6, Joe Midmore, chief commercial officer at OpenGamma, stated that market participants with higher risk profiles that need to exchange margin must now ensure they are doing so as efficiently as possible. “This includes either optimising the margin paid, or perhaps looking at the possibility of moving UMR sensitive trades away from a bi-lateral environment to the clearing world. On top of this, firms also need to validate the margin that they are paying to their counterparties.”

Although not preparing for this final phase of the regulation would have an impact on firms’ ability to trade, there are ways in which firms can continue trading despite the deadline – essentially, taking advantage of the UMR threshold of $50 million. Initial Margin (IM) does not need to be posted until this threshold is crossed, allowing firms to trade with their counterparts up until this IM amount has been reached.

This will not necessarily serve as a shortcut for firms, as IM will still need to be calculated. In addition, under this approach, it is very important to assess where a firm stands compared to the threshold to ensure it can become compliant speedily in the event that a firm nears the IM threshold.

“As the final phase of  UMR finally goes live, we will see who has taken the steps to prepare their infrastructure to adapt to the operational challenges of the regulation,” said Christian Geiger, head of sales management securities finance at SIX.

“For those who have not, it is crucial they explore a tri-party collateral arrangement, as this is an efficient strategy for enabling UMR compliance. As a case in point, SIX has seen an increasing client demand for a tri-party collateral management solution with the final phase of UMR coming into force. Complying with UMR and posting initial margin has never been easier with the solutions on offer but for those in scope or soon to be in scope, steps should be taken now to minimise the operational burden now that phase 6 is in effect.”

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Through the integration with OSTTRA’s clearing connectivity solution, BidFX clients will be able to submit trades directly to leading CCPs.

FX NDF trades will also be able to be submitted directly for clearing by BidFX’s trading participants, at multiple CCPS, without having to build out direct clearing connectivity.

In addition, a community of over 30 executing bank clearing counterparties will be able to benefit BidFX’s clients who wish to clear trades.

As phase six of the Uncleared Margin Rules (UMR), due to be implemented in September, begins to draw closer, buy-side firms planning on optimising their balance sheets will be deciding whether clearing more of their FX trades will be their best option.

As the costs and operational challenges of the regulation’s requirements are evaluated by investment managers, BidFX and OSTTRA’s connectivity will be able to help those who decide to clear more of their FX flow.

“Buy-side firms trading large volumes of non-cleared FX OTC trades may face additional operational overheads due to UMR,” said Alan Dweck, chief operating officer at BidFX.

“Our initiative with OSTTRA provides these participants with a much-needed range of options for clearing and seamless trading ahead of UMR phase six.”

In December last year, OSTTRA expanded its OTC LimitHub service to support equities in line with the Central Securities Depositories Regulation (CSDR) deadline.

The expansion of the service looked to support market participants looking for ways to mitigate settlement risks ahead of the regulation’s deadline this month.

“Adding BidFX to the existing OSTTRA clearing community increases the options available to market participants wishing to benefit from the efficiencies of FX Clearing with central counterparties,” said Patrick Philpott, FX product strategy at OSTTRA.

“The final phase of UMR reinforces the industry’s focus on initial margin and enhanced standards, and we look forward to working with BidFX and the wider market to ensure widespread access to clearing.”

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As financial institutions are looking at the best approach to take ahead of Phase 6 next September, those that take the most pragmatic approach to segregating collateral will be in the best position. For those only using cash collateral today, the additional operational requirements brought about to segregate non-cash collateral may seem more attainable given the extension. One thing is for certain, financial institutions can’t afford to waste time.

They need to clearly understand each model and assess not just their operational capacity, but their systems capability well in advance of Phase 6. The transition away from Libor also presents significant operational challenges for the many banks, swap dealers, hedge funds and asset managers who have all been trying identify ways to convert their Libor linked derivatives trades in each jurisdiction. A bilateral approach to portfolio compression is certainly helping market participants to reduce Libor switchover risk, optimise capital, and enhance operational efficiency ahead of the December deadline. Lastly, a healthy underlying repo market will be fundamental to a well-functioning EU cash bond market in 2022.

The trouble is that inefficient repo workflows have long been an operational burden for market participants. As the issuance programme begins to ramp up in the coming months, it is paramount that some of the longstanding manual processes that have hung over repos are automated in order for the market to be fast tracked into the 21st century. Nowhere is this more important than in the area of collateral – which is currently very siloed. Some institutions have a repo and a bi-lateral cleared team using completely different systems and legal entities. Financial institutions should be trying to move to one centralised team and one system in order to bring more efficiencies to repos trading.

– Philip Junod, senior director, TriReduce and TriBalance business management at OSTTRA

The roll out of the settlement discipline regime of Central Securities Depositories Regulation (CSDR), expected to happen in February 2022, is set to have a major impact on the European securities market and in particular the long-term development of the exchange traded fund (ETF) industry.  While the rules on mandatory buy-in are postponed, there will still be streamlining of standards and efforts to improve settlement efficiency across European markets. We see an opportunity to bring more European ETF activity into clearing, so allowing investors to benefit from the resulting netting and settlement efficiencies, as well as, reducing overall costs.

At present, the clearing and settlement of ETFs in Europe is best described as sub-optimal, characterised by fragmentation, leading to settlement inefficiency and high numbers of fails. In Europe, an estimated 70 per cent of ETF trades are uncleared.  We expect that bringing more ETF activity in central counterparty clearing is in turn likely to promote more transparency and help support the continued growth and development of the ETF industry in 2022 and beyond.

– Cecile Nagel, CEO EuroCCP

Despite being plagued by delays and doubt, CSDR will be a key focus for financial services firms in 2022. It’s much more than just another piece of regulation, impacting all parties in the settlement chain in transactions across European securities. The UK announced that it will not implement the SDR, but in scope transactions are those that are settled on an EU CSD, irrespective of where they are traded. This is an aspect that may catch some firms out if the line of stock is traded on a UK venue and settled on Euroclear, for instance.

CSDR must be viewed as a significant operational and infrastructure change, supported by – but not led by – the compliance function. Although compliance will come at a cost, the necessary overhaul of front-, middle- and back-office operational processes should be viewed as an opportunity for firms to reduce risk and eliminate endemic inefficiencies in the post-trade operating model. Although there is regulatory uncertainty with regards to the scope and implementation of certain elements of the SDR – in February 2022 – and the introduction of settlement penalties, will roll around quickly. However, the firms that act now to ensure they have appropriate pre-matching and settlement process and a viable solution to consume, track and manage penalties will be better positioned come implementation day. Data will be the driving force in providing solutions, helping firms manage the regulatory obligation whilst positioning them to seize the benefits of the SDR if they put the groundwork in now.

– Linda Gibson, director, head of regulatory change at BNY Mellon’s Pershing

The post The TRADE predictions series 2022: post-trade regulation appeared first on The TRADE.

OSTTRA’s OTC LimitHub service, powered by Traiana, has gone live with BNP Paribas Securities Services to extend clearing of European OTC equities in support of the Central Securities Depositories Regulation (CSDR).

The expansion of the OTC LimitHub service to support equities comes at a pivotal time when market participants are seeking additional ways to mitigate settlement risks ahead of the Central Securities Depositories Regulation (CSDR) deadline in February 2022.

The post-trade solutions company said the service will allow sponsoring General Clearing Members (GCMs) to credit check and approve their Non-Clearing Member clients (NCMs) to clear European OTC equities via multiple CCPs, ahead of February’s CSDR deadline. The EU regulation encourages buy-side firms, banks and brokers to settle European market transactions in a timely manner to reduce the chances of failing trades and any associated buy-ins.

 “The launch of Traiana’s Equity LimitHub service comes at a time when the market is looking to clear more OTC equities flow to benefit from settlement and capital efficiencies, especially in preparation for the CSDR mandate,” observed Camille Papillard, head of clearing and settlement products at BNP Paribas Securities Services.

“The new limit tool will enable BNP Paribas Securities Services to monitor our extensive NCM broker and swap provider client portfolio to approve their daily trading activity for clearing using our General Clearing Membership status.”

Equity LimitHub will offer sponsoring GCMs the ability to create and manage credit limits, as well as execute limit and authorisation checks for NCM broker and swap providers. This means sponsored NCMs can join Traiana’s Equity CCP network for clearing, which will help reduce settlement costs and risks associated with bilateral settlement.

Joanna Davies, head of FX and Securities Business Development at OSTTRA, said the expansion of  LimitHub service into equities will enable more NCM firms to clear their European market flows via its Equity CCP Connect network, helping them to access the benefits of clearing.

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