HSBC awards multi-year post-trade OTC derivative agreement to Delta Capita

Delta Capita has been selected by HSBC to deliver OTC derivatives confirmation and settlement services. The multi-year agreement will see Delta Capita work to globally to boost security and certainty in the derivatives market.
Over-the-Counter (OTC) derivative contracts are not traded on an exchange like the London Stock Exchange. Instead, they are negotiated privately between two counterparts, like a manufacturer and a bank. All derivatives contracts executed on a venue of execution which is not a regulated market, such as a multilateral trading facility, is considered as an OTC derivative contract under the European Market Infrastructure Regulation.
OTC derivatives account for almost 95% of the derivatives markets – making their security extremely important to the financial health of many traders. Now, as HSBC looks to standardise post-trade processes to reduce industry costs and risks, it has handed a new contract to Delta Capita.
Karen Everingham, head of markets and securities services operations at HSBC, commented, “The agreement we have established with Delta Capita opens up new opportunities for us to enhance our Derivative Post-Trade Services for our valued clients.”
Delta Capita is a global financial services provider of managed services, technology solutions and consulting. This milestone builds on Delta Capita’s recent successes, including strategic acquisitions and advancements in capital markets technology. Delta Capita was recently selected by Citi to scale and commercialise Citi’s QMA software, for example, while it has also supported the creation of MACH, the capital markets blockchain software chosen by Montis in 2023 as its platform of choice.
The firm’s CEO Joe Channer added, “We are delighted to have been appointed by HSBC to provide operational services. This collaboration reflects our expertise in delivering cost-efficient, scalable post-trade solutions and reaffirms our commitment to driving innovation in financial services."
Looking ahead, the multi-year deal also underscores Delta Capita’s dedication to its innovative infrastructure-as-a-service model. By standardising post-trade processes and helping to reduce industry costs, the firm says it “aims to deliver an exemplary service to our clients while addressing complex regulatory requirements”.