Trad-X, an MTF operated by Tradition (UK) Limited launched in February 2013 has announced record trading volumes for US dollar interest rate swaps. In May, Trad-X executed 680 trades equating
to a notional of USD 37 billion. These electronically executed trades accounted for almost 24% of all USD trades at Tradition.
Sice being launched Trad-X has executed well over 6,000 US dollar interest rate swap trades, worth a notional value in excess of USD 290 billion. Also of note, electronic execution now steadily accounts for a quarter of all USD trades at Tradition, one of the world’s largest inter-dealer brokers in over-the-counter financial and commodity related products.
Daniel Marcus, CEO of Trad-X, comments: “The introduction of regulatory requirements to trade interest rate swaps on SEFs in the US has shown a gradual move towards hybrid and electronic trading on our central limit order book. Trad-X continues to offer an unparalleled depth of liquidity through a unique combination of our voice and electronic liquidity pools, and the full hybrid support of our voice brokers has been integral to the success of the offering.”
Mike Leibowitz, COO of Tradition, said: “Trad-X was designed by the market for the market in advance of regulatory reform. With the support of participants, we have seen a material increase in volumes traded on the platform this year. This is due to the high quality of liquidity available on our cutting-edge proprietary technology.
“As an integral part of our SEF strategy, we have seen our USD interest rate swaps platform emerge as an early leader in SEF volumes, which validates our flexible execution strategy in line with the SEF rules.”
Trad-X is also pleased to announce the making available to trade of CME cleared USD interest rate swaps and the launch of its new innovative CCP position switch service. The CCP position switch service will go live for USD interest rate swaps in June for trades between CME’s Clearing House and LCH.Clearnet Ltd. The new service will allow counterparties to efficiently switch corresponding CCP positions and will provide the market with a new execution level collateral management tool.
CEO Daniel Marcus sums up: “We are committed to continually developing the platform in line with Tradition’s technology focused strategy. The CCP position switch service is the first of many innovative enhancements that will be incorporated into Trad-X globally over the course of 2014 and beyond.”