Trad-X Launches New Initiatives via Eurex Clearing Synergy
- The launch of Central Limit Order Book, CCP Switch, and public pricing page through new Trad-X presence with Eurex Clearing partnership is announced.
Trad-X, a Compagnie Financière Tradition owned brand and product used for the global interest rate swap (IRS) market, has been re-positioned with a new central limit order book (CLOB) and auction market for Eurex’s OTC cleared Interest Rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term (IRS), in a newly launched clearing partnership.
The company announced the launch today to coincide with EMIR frontloading requirements, and the CLOB will initially aim towards liquid euro medium- to long term swaps (2yr- 30yr), and related spreads and flys, as well as asset swaps.
A number of further initiatives are aiming to bolster the company’s value offering, including how public it will provide auctions with the aim of liquid and transparent central counter-party clearing (CCP) between Eurex Clearing and LCH.Clearnet, by enabling participants to move positions from one CCP to another (while optimizing margin) known as a switch service.
We believe the establishment of a transparent CLOB gives our customers greater choice and helps provide a fair and competitive environment.
The launch of the switch service was compared to the Tradition SEF which the company had successfully registered with the CFTC – the services of which account for the majority of all CCP basis volume, and which forms a large part of Trad-X IRS CLOB Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, according to the company’s press release.
Central limit order book, switch service, and public pricing page
Philip Simons, Global Head of Fixed Income Trading and Clearing Sales at Eurex, said in the company statement: "We see strong demand from clients wanting to realise the benefits of switching positions and moving risk seamlessly between CCPs to efficiently manage and optimise their capital and margin. Trad-X's excellent track record as the leading electronic IRS CLOB globally makes them a natural partner for this initiative."
A new public reference page will be published by Trad-X for EurexOTC cleared swap mid-markets, and will be available under Bloomberg ticker TREU.
Some of the key highlights of the Trad-X CLOB is how it receives continuous two-way streaming from a wide range of market participants - including 15 of the largest global market participants in the world.
The announcement cited average daily volume of EurexOTC Clear increasing more than 60% so far in 2016, and with further increases expected ahead of mandatory clearing phases.
Also commenting in the official press release, Dan Marcus Trad-X CEO said: "As an MTF we support fair and open access to all participants including market infrastructure providers such as Eurex Clearing. We believe the establishment of a transparent CLOB gives our customers greater choice and helps provide a fair and competitive environment."
Trad-X, a Compagnie Financière Tradition owned brand and product used for the global interest rate swap (IRS) market, has been re-positioned with a new central limit order book (CLOB) and auction market for Eurex’s OTC cleared Interest Rate Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term (IRS), in a newly launched clearing partnership.
The company announced the launch today to coincide with EMIR frontloading requirements, and the CLOB will initially aim towards liquid euro medium- to long term swaps (2yr- 30yr), and related spreads and flys, as well as asset swaps.
A number of further initiatives are aiming to bolster the company’s value offering, including how public it will provide auctions with the aim of liquid and transparent central counter-party clearing (CCP) between Eurex Clearing and LCH.Clearnet, by enabling participants to move positions from one CCP to another (while optimizing margin) known as a switch service.
We believe the establishment of a transparent CLOB gives our customers greater choice and helps provide a fair and competitive environment.
The launch of the switch service was compared to the Tradition SEF which the company had successfully registered with the CFTC – the services of which account for the majority of all CCP basis volume, and which forms a large part of Trad-X IRS CLOB Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term, according to the company’s press release.
Central limit order book, switch service, and public pricing page
Philip Simons, Global Head of Fixed Income Trading and Clearing Sales at Eurex, said in the company statement: "We see strong demand from clients wanting to realise the benefits of switching positions and moving risk seamlessly between CCPs to efficiently manage and optimise their capital and margin. Trad-X's excellent track record as the leading electronic IRS CLOB globally makes them a natural partner for this initiative."
A new public reference page will be published by Trad-X for EurexOTC cleared swap mid-markets, and will be available under Bloomberg ticker TREU.
Some of the key highlights of the Trad-X CLOB is how it receives continuous two-way streaming from a wide range of market participants - including 15 of the largest global market participants in the world.
The announcement cited average daily volume of EurexOTC Clear increasing more than 60% so far in 2016, and with further increases expected ahead of mandatory clearing phases.
Also commenting in the official press release, Dan Marcus Trad-X CEO said: "As an MTF we support fair and open access to all participants including market infrastructure providers such as Eurex Clearing. We believe the establishment of a transparent CLOB gives our customers greater choice and helps provide a fair and competitive environment."