OSTTRA Traiana expands OTC LimitHub to support equity clearing
09 December 2021 UK
Image: AdobeStock/denys_kuvaiev
OSTTRA has extended its OTC LimitHub solution to service equity transactions.
The OTC service, based on Traiana, enables general clearing members (GCMs) to apply credit limit and authorisation checks on sponsored members (NCMs) wishing to clear OTC-traded European equities through multiple central counterparties (CCPs).
OSTTRA states that, coming just weeks before the February 2022 deadline for the Central Securities Depository Regulation (CSDR) settlement discipline regime, this service will help users to reduce settlement costs and risks linked to bilateral settlement.
On launching this service with BNP Paribas Securities Services, Joanna Davies, OSTTRA’s head of FX and securities business development, says: “The expansion of our LimitHub service into equities will enable more NCM firms to clear their European market flows via our Equity CCP Connect network, helping them to access the benefits of clearing, especially with CSDR around the corner.”
Camille Papillard, head of clearing and settlement products at BNP Paribas Securities Services, comments: “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.
“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 GCM status.”
The OTC service, based on Traiana, enables general clearing members (GCMs) to apply credit limit and authorisation checks on sponsored members (NCMs) wishing to clear OTC-traded European equities through multiple central counterparties (CCPs).
OSTTRA states that, coming just weeks before the February 2022 deadline for the Central Securities Depository Regulation (CSDR) settlement discipline regime, this service will help users to reduce settlement costs and risks linked to bilateral settlement.
On launching this service with BNP Paribas Securities Services, Joanna Davies, OSTTRA’s head of FX and securities business development, says: “The expansion of our LimitHub service into equities will enable more NCM firms to clear their European market flows via our Equity CCP Connect network, helping them to access the benefits of clearing, especially with CSDR around the corner.”
Camille Papillard, head of clearing and settlement products at BNP Paribas Securities Services, comments: “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.
“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 GCM status.”
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