MarkitServ and Traiana vie to build clearing utilities

Middleware firms set to compete in creation of credit-checking hub - but critics say rival utilities would undermine the service

MarkitServ and Traiana are competing to create the derivatives market's first credit-checking hub – a utility they argue would make the market more efficient once over-the-counter trades become subject to the Dodd-Frank Act's clearing mandate. But while the hub concept has supporters, including asset management titan BlackRock, others say it is doomed to fail, especially if rival utilities are launched.

Hubs have been mooted as a way to help provide certainty that a trade will clear. Dealers