Clearnet and Isma agree pact on Trax
Clearnet, ParisBourse’s clearing house subsidiary, has announced a deal with the International Securities Market Association (Isma). The pact will allow members of the Clearnet OTC service to use Isma’s electronic post-trade matching system, Trax, to enter and match both cash and repo transactions and trades in the current range of bonds cleared by Clearnet.
Trax will automatically send details of the matched transactions to Clearnet which will provide immediate central counterparty and netting arrangements between each party before settlement. The service will start in the first quarter of this year. Clearnet says using a central counterparty in cash market transactions is becoming more attractive as market participants seek to control costs by avoiding failed settlements.