NEX Optimisation, a NEX Group business dedicated to helping clients reduce complexity and optimise resources across the transaction lifecycle, announced that it has provided central clearing connectivity for its FX risk mitigation service in non-deliverable forwards.
Its clearing connectivity capability enables dealers to flag trades that are part of a risk mitigation cycle for automatic submission to a central counter party clearing house (CCP). Direct connectivity to CCPs allows trades matched between two counter parties to be submitted directly for clearing rather than having to be re-submitted for secondary matching prior to communication to a CCP.
Ken Pigaga, CEO of NEX Optimisation, commented: “By offering central clearing connectivity to Reset clients, we can streamline their FX cleared trade workflow and make trade processing far more efficient. This is another example of how NEX Optimisation’s unique portfolio of services, when leveraged, can become even more powerful and transform existing OTC post-trade processes.”
Steve French, Head of Connectivity and Messaging at NEX Optimisation, added: “The automation of existing manual FX clearing workflows is gaining focus due to the increase in clearing by both dealers and clients and the introduction of regulatory requirements for instruments cleared on a voluntary basis under MiFID II/MiFIR. Market participants are looking for consistency across their cleared, bilateral and tri-party trade workflows on a global basis. This service will help ensure regulatory compliance while simplifying post-trade processes.”
The majority of centrally cleared FX transactions are executed on electronic venues or represent the component trades of a risk reduction cycle, which are executed/processed across multiple venues and are then submitted for clearing on a voluntary basis as part of a two-step process. NEX Optimisation provides a more efficient clearing process that mirrors the operational practices established for swaps under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
During the year 2017, NEX Optimisation has launched the industry’s first fully automated Settlement Netting Service to streamline the bilateral settlement netting process for market participants. In addition, the company has extended Traiana’s Harmony messaging network to enable participants to exchange additional information necessary to meet regulatory obligations under MiFID II, due to go live on 3 January 2018.
Regarding executive moves, the business appointed former HSBC Paul Busby as Global Head of Sales for ENSO, its portfolio finance and centralised treasury management solution for the buy-side. In October 2017, Ken Pigaga became Chief Executive Officer of NEX Optimisation following Kenny Knott’s decision to step down from the role.