Eurex Clearing connects to OSTTRA’s post-trade network for Exchange Traded Derivatives

Rick Steves

“In the past, volumes would increase as a reaction to significant macroeconomic events. Now, every month, we are consistently seeing volume spikes, thus urgently increasing demand for a real-time solution that provides a window into every aspect of the give up and allocations workflow.”

OSTTRA has announced real-time view into the status of Exchange Traded Derivatives (ETD) trades being cleared through Eurex.

OSTTRA has also worked closely with Eurex on an additional project to enable clients to manage the Next Generation ETD Contracts currently under development by Eurex and scheduled to go live in March 2023.

The post-trade network of close to 200 market participants, OSTTRA ClientLink, provides a comprehensive, adaptive solution that addresses the bottlenecks in processing flows created by more frequent volume spikes.

The Exchange Traded Derivatives (ETD) industry needs greater visibility and efficiency as demonstrated by the ongoing commitment of industry participants to the FIA DMIST standards development, OSTTRA stated.

OSTTRA ClientLink for ETD to welcome more CCPs in 2023

OSTTRA is a joint venture between S&P Global & CME Group whose mission is to strengthen the post-trade infrastructure and ecosystem by offering its solutions MarkitServ, Traiana, TriOptima and Reset.

Eurex Clearing plans to become the second central clearing counterparty (CCP) after the CME to connect to OSTTRA ClientLink for ETD. The enhanced connectivity will enable Eurex to send investment managers booking confirmations for their allocations via OSTTRA ClientLink for ETD, delivering live status updates on which trades have been given up, claimed and cleared – providing trade certainty in fast-moving markets.

After CME and Eurex Clearing, OSTTRA is close to welcoming a third CCP to the network, with more lined up for delivery in 2023.

Melanie Weber, SVP Derivatives Clearing Design, Eurex Clearing, said: “We are pleased to support vendors like OSTTRA to deliver much needed transparency to all parties on the trade. By receiving real-time updates, clients will be able to manage operational risk and capital more effectively throughout the trading day. In parallel to the ETD transformation initiative, OSTTRA and Eurex Clearing are aligned on the Next Generation ETD Contracts, which Eurex is implementing to allow more than one expiration per month under a single product ID, providing clients with additional flexibility.”

Joanna Davies, Head of FX and Securities, OSTTRA, commented: “The ETD industry needs greater visibility and efficiency as demonstrated by the ongoing commitment of industry participants to the FIA DMIST standards development. In the past, volumes would increase as a reaction to significant macroeconomic events. Now, every month, we are consistently seeing volume spikes, thus urgently increasing demand for a real-time solution that provides a window into every aspect of the give up and allocations workflow. The ability to support the entire ETD community with this new flexibility and transparency presents a huge leap in the evolution of both the ETD trade allocation process and the transformation of the ETD workflow.”

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