"We all know that the over–the-counter derivatives sector faces unprecedented changes to the way it operates. Whilst Market professionals are not sure which way the changes currently under consideration are going to work out, it is prudent to be prepared. Formicary is able to assist in the preparation phase to consider the impacts of trades selection for clearing and in the integration work necessary to the clearing houses themselves"
Greville Lucking, COO
Formicary Ltd
DEFAULT MANAGEMENT PROCESS (DMP)
Formicary Default Management Process (DMP) Portfolio Analysis Tool for LCH.Clearnet Fire Drill
and Driving Test
Clearing Solution |
The Formicary Clearing solution provides the business and technical expertise required to facilitate a smooth, swift and successful onboarding process for LCH.Clearnet's new clearing members to easily pass the 'Driving Test'. A default management process (DMP) Portfolio Anaylsis tool has been developed for client members to use in the FireDrill which simplifies the reconciliation requirements of a defaulting member's portfolio. Consultancy includes evaluation of the key areas around the clearing process: novation, payment netting, default management, as well as backloading of existing trades, valuation assistance, and workflow management. Technical integration services include extending MarkitWire connectivity, creating trade loader for sample default portfolios and development of reconciliation tools to integrate with clearing house system.