GL TRADE, a global provider of multi-asset and multi-market solutions for financial institutions, today announced an agreement with Swapstream, the market-leading multilateral electronic trading platform for interest rate swaps (IRS) and subsidiary of CME Group, to co-operate in developing a processing solution for CME Cleared Swaps to be used by GL Trade’s futures and options back-office clients globally.
GL TRADE will develop a dedicated module for its UBIX back-office system, enabling its customers to manage and process clearing for over the counter (OTC) trades while adhering to the swap market’s specific rules and contract specifications. The new module will be offered at specific discounted commercial conditions for UBIX clients wishing to trade CME Cleared Swaps. Swapstream, CME Group and GL TRADE teams will promote the new UBIX module to UBIX customers worldwide.
CME Cleared Swaps will offer the OTC interest rate market the first ever centrally-cleared interest rate swap available to all market participants. CME Group will provide clearing for the new product through CME Clearing’s OTC solution known as Clearing360TM. Trades will be privately negotiated between two counterparties and then submitted for clearing either through CME Group’s web-based Front-End Clearing System or using Swapstream’s sProTM trading platform.
Laurent Jacquemin, global head of the Post-Trade for Derivatives Business Line at GL TRADE commented: "GL TRADE is delighted to work with CME Group for the promotion of this unique initiative. This agreement with the CME allows us to offer full functional coverage of the CME Cleared Swaps enabling UBIX customers to clear and margin these new instruments. GL TRADE has always been in the forefront to support new market initiatives and to accompany our customers. We expect a strong success of Swapstream among GL TRADE’s UBIX client community."