Trad-X, part of Compagnie Financiere Tradition one of the world’s largest interdealer brokers in OTC financial and commodity related products, has extended its interest rate swaps product as it launches the Sterling interest rate swap.
Trad-X was one of the first complaint trading venues for the interest rate swaps market, the platform was launched in 2011 as a hybrid trading platform. The platform currently offers the Euro and USD interest rate swaps.
Speaking about the launch, Daniel Marcus, Global Head of Strategy and Business Development at Tradition, said in a statement: “We are delighted to be further expanding the range of products in the Trad-X universe. Trad-X Sterling is designed in line with market requirements and will leverage off our excellent voice broking business and proprietary technology to bring a hybrid solution to the market. We hope it follows in the footsteps of our highly successful EU and USD swap offerings.”
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Trad-X, is a hybrid platform which allows traders to use both electronic and voice trading. The platform is supported by 11 of the worlds leading banks including; BNP Paribas, Citigroup, Credit Suisse, Goldman Sachs, HSBC, Morgan Stanley, Nomura, Royal Bank of Scotland, Societe Generale, UBS and an undisclosed US based bank.
Interest rate swaps are used by several market participants to manage risk with uncertainty in interest rates or for speculative purposes, in simple terms, a fixed interest rate is ‘swapped’ for a floating interest rate. New trading platforms have been launched by dealers on the back of legislation which pushes OTC markets on-exchange.
Panos Korantzopoulos, Global head of Flow rates EUR, CHF and Scandi at Nomura, one of the supporting banks, said in a comment on Trad-X’s website:”Nomura are very pleased with the early results of Trad-X, to have 11 dealers streaming live executable prices is a significant achievement. We hope this will be a model that will satisfy many of the forthcoming regulatory requirements and look forward to further partnering Trad-X as the market evolves.”
Broadway Technology partnered with the Tradition platform in April as the technology firm added the platform to its portfolio of adaptors for US Interest Rate Swaps. Broadway’s adaptors provide a variety of advantages to traders including; normalized market data, order handling, and post-trade feeds.