OTCX Expands Capabilities After Receiving ASIC Market Exemption Licence

OTCX is looking to expand its OTC trade capture coverage by offering trading on cleared and non-cleared products.

OTCX, a provider of electronic derivatives trading capabilities, announced today that it has expanded its offering with trading capabilities which include OTC Equity Derivative and Interest Rate Derivative trading for the Australian market.

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Market Exemption Licence

The Australian Securities and Investments Commission (ASIC) approved a Market Exemption Licence for OTCX in October, enabling regulatory monitoring of its platform which includes a regular reporting requirement to ASIC.

OTCX’s RFQ platform allows full straight through processing of dealer to client OTC derivative trades and removes the reliance on unregulated chat and voice systems in an increasingly regulated environment. This will enable Australia’s leading trading houses, banks, asset and treasury managers to evidence best execution as well as straight through processing where possible.

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OTCX started working with the United Kingdom Trade & Investment (UKTI) office and KPMG, Sydney, and through the collaboration was introduced to ASIC’s Innovation Hub.

As a result, OTCX was able to benefit from faster processing times and the more focused and skilled support network of the Innovation Hub in order to successfully develop in Australia.

OTCX is looking to rapidly expand its OTC trade capture coverage by offering clients the ability to trade cleared and non-cleared products as well as more complex OTC workflows. OTCX will also roll out its platform to new clients in Europe and North America in 2017.

Dan Birch, Managing Director, OTCX Asia Pacific, commented: “Working with ASIC has been a hugely positive experience. The expertise, direction and responsiveness of the team in the Innovation Hub was very helpful as we looked to establish a permanent position in the Australian market. We look forward to continue our growth and work closely with ASIC in the future.”   

Background

OTCX was one of the first web-based trading platforms for exotic and vanilla OTC derivatives, allowing users to negotiate trades more efficiently and evidence best execution. The firm’s Request for Quote (RFQ) platform enables the buy-side to be fully compliant with all impending regulation such as MIFID ll. 

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