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Equities
Since 2005 Markit Wire has supported the electronic confirmation of OTC Equity Derivative transactions. After the initial launch, the list of participating dealers has now increased to include all the major global players. The service has also expanded to cover multiple product types and regional jurisdictions and is the first choice for banks, brokers, prime brokers and buy-side clients.
- Equity Single Stock and Equity Index Options on Pure OTC and Exchange Look-alike Transactions
- Increases, Full/Partial Decreases, Early Exercise, Terminations
- Equity Single Stock and Equity Index Variance Swaps
- Stock or Futures Delta Hedge
- Independent Amount
- Centralised Corporate Actions Adjustments
- Equity Total Return Swaps
Underlying markets supported: Europe, Japan, Asia (ex-Japan), North America.
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Master Confirmation Agreements
The leading participants in the industry are committed to the creation of an environment where frequently traded products are supported by streamlined documentation using Master Confirmation Agreements (MCAs). The creation and publication of MCAs is being undertaken in partnership with ISDA and SIFMA™ to ensure industry-agreed documentation. Markit Wire takes this process one step further and enables participants that have signed MCAs to confirm their OTC trades using an electronic Transaction Supplement. Markit Wire will continue to develop new services for Equity Derivatives in-line with the published Master Confirmation Agreements.
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Standard Reference Data
Reuters Market Data
Markit Wire includes a dynamic feed of Reuters market data, allowing users to look up and use RIC codes without having to re-key the data. This simplifies trade capture and cuts down on possible errors.
Financial Calendar
Calendar data published by Swaps Monitor Publications, Inc is also included to identify trading and settlement holidays across stock and futures exchanges. This data is used to calculate the ‘N’ for Variance Swaps – eliminating a major cause of mismatched trades in these products.
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Key Features
| Trade Life Cycle Event |
Description |
| New |
Confirms new trades. |
| Amend |
Documents amendment to terms of existing trade. |
| Cancel |
Documents the cancellation of a trade. |
| Increase/Decrease |
Allows two parties to confirm a trade that increases or decreases an existing option position. |
| Early Exercise |
The MCA provides for automatic exercise at expiry, but for American Style Options an early exercise will be documented through SwapsWire. |
| Early Terminations |
Allows two parties to confirm the early termination of a Variance Swap transaction and the termination fee that was agreed. |
| Corporate Actions |
Markit Wire offers centralised corporate action adjustments, while maintaining the right of the calculation agent to determine the impact of a specific event. |
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Tailored For The Buy-Side
Markit Wire enables all participants to confirm OTC Equity Derivatives on trade date. In addition, specific functionality has been provided for buy-side clients.
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Independent Amount
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Allocations
- Novations
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Give-Up Trades
Markit Wire’s PBWire service also offers a fast and efficient give-up tool. The executing broker, client and prime broker can communicate trade details in real time to complete the give-up. Buy-side clients can confirm all their trades in a single screen whether traded direct or given up to one or more prime brokers. All Equity Derivative products are supported.
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Sign Up Procedure
Clients who use Markit Wire to confirm trades in other derivatives products will automatically have access to all Equity Derivative products. However, they will need to sign the appropriate bilateral Master Confirmation agreements with their counterparties. Please contact Markit Wire or your broker to start receiving trade-date confirmations.
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