Commerzbank and DekaBank Join Trad-X D2C Derivatives Platform

The dealer-to-client derivatives trading platform was launched at the beginning of this year.

Trad-X announced this Tuesday that it has added two large German banks to its dealer-to-client derivatives trading platform, Trad-X D2C, Commerzbank, and DekaBank.

As Finance Magnates reported, Trad-X D2C launched in January of this year, and it is the first dealer-to-client central limit order book (CLOB) of its kind in Europe. According to the statement released today, the addition of both Commerzbank and DekaBank shows the growing momentum behind the platform.

Under the agreement, Commerzbank has become one of the major dealers to provide liquidity on the D2C platform and, for Eurex cleared instruments, stream two-way pricing to a range of banks and buy-side clients.

DekaBank, on the other hand, has joined the platform as a non-dealer. According to the company, this confirms interest in Trad-X D2C from market participants wanting to use CLOB execution.

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Philippe Dudon of Trad-X
Philippe Dudon, COO at Trad-X
Source: LinkedIn

Commenting on the partnership, Philippe Dudon, Chief Operating Officer at Trad-X, said in the statement: “Trad-X D2C was launched with a view to providing banks and financial institutions with an alternative to trading through RFQ protocols.”

“A dealer-to-client central limit order book model is something we have not seen in the derivatives market until now. Commerzbank has been a key partner for Trad-X and is committed to providing liquidity on our Eurex-cleared D2C CLOB, while the addition of DekaBank illustrates the diversity of customers attracted by the type of alternative execution process we offer.”

More banks to join Trad-X D2C

However, Commerzbank and DekaBank are not alone in joining the platform. According to Trad-X, there are more than a dozen further banks and financial institutions which are currently going through the onboarding process. They are expected to go live in the coming weeks and months.

“The Trad-X D2C CLOB adds an extra dimension to our interest rate swap business and is another step forward for our expanding electronic offering. This is an excellent tool to provide liquidity to our clients across the marketplace,” added Thomas Rösner, Head of Rates Trading at Commerzbank.

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