ICAP Announces Strategic Alliance With Clarus Financial Technology For OTC Data Service

As technological alignments with the Dodd-Frank Act continue to proliferate North America's institutional FX sector, British post trade risk mitigation company ICAP has today announced that it is to offer a new data service for OTC derivatives in conjunction with US-based Clarus Financial Technology.

According to ICAP, the service is intended to distribute benchmark derivative pricing provided by ICAP within Clarus Financial Technology's SDR View – Professional product which comprises a series of views, as well as sourcing rates and credit trades from the The Depository Trust & Clearing Corporation.

Interest rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term, FRAs, OIS swaps and basis swaps quoted in AUD, CAD, EUR, GBP and USD will be covered by the service.

CAP Information Services (IIS) has provided the data in order to articulate an aggregate view of best bid/ask levels across ICAP’s on/off SEF marketplaces for each currency and product once each hour.

Clarus Financial Technology's position is to overlay this pre-trade transparency on its intraday analysis of aggregated Swap Data Repository (SDR) post-trade reporting.

Mark Beeston, CEO of Portfolio Risk Services for ICAP, made a corporate statement today to the effect that: “In the new Dodd–Frank environment, mandated post-trade transparency is a requirement, and the ICAP information on Clarus’ SDRView accurately meets those needs by reflecting price levels at which the market is formulating its “next” trade. We look forward to working with Clarus and offering this exciting new product to our customers.”

Amir Khwaja, CEO of Clarus Financial Technology, further added that: “By creating a single screen that brings together in real-time the last trades executed under US regulations to the DTCC Swap Data Repository, alongside the consensus pre-trade prices from ICAP, we believe we are creating a unique and must-have destination. And by delivering all this in a Web Browser, we are creating a new level of transparency and open access for such data. One that is independent of existing proprietary networks and one that we believe will appeal to both the Buy-Side Buy-Side The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim Read this Term and the Sell-Side.”