Trad-X, the market-leading platform for the trading of global interest rate derivatives, has announced the completion of its 25,000th trade last month. The milestone trade was executed on Friday 28 November, and comes as total USD IRS trading volumes since launch exceeded USD 1 trillion.
Since the introduction of SEFs in October 2013 into the US marketplace as a component part of the Dodd Frank Act, Trad-X has formed the backbone of Tradition SEF’s Interest Rate Swap Central Limit Order Book (CLOB) liquidity.
Since the start of September 2014, Trad-X USD on-SEF volumes have seen a sharp increase. From the start of September to end of November, Trad-X executed more than 4,700 interest rate swap trades, worth a notional value in excess of USD 540 billion.
Dan Marcus, CEO of Trad-X, said: “Tradition’s SEF volumes have grown exponentially during 2014. We are now executing 96% of our “on-SEF” USD interest rate swaps volumes on the Trad-X central limit order book. The adoption of this electronic and hybrid execution methodology is testament to Tradition’s innovative technology, the quality of our broker support and market provided liquidity.”
Trad-X is a hybrid trading platform supported by a large and diverse group of global banks, which stream two-way pricing to the platform across the most liquid USD, EUR and GBP interest rate swap products. The platform differentiates itself by the depth and quality of its liquidity and the fact that it operates on a hybrid basis, ensuring voice and electronic liquidity are combined and operate on a seamless and symbiotic basis.
Trad-X also announced the launch of a new CCP switch service for EUR interest rate swaps between CME’s Clearing House and LCH.Clearnet Ltd in January 2015. This follows on from the success of the service in USD interest rate swaps. The CCP switch service allows counterparties to efficiently switch corresponding CCP positions and provides the market with a margin efficient execution level collateral management tool.
Marcus added: “The addition of CCP auctions for euro interest rate swaps marks the latest innovative enhancement to the Trad-X platform. We will be rolling out a number of new products to the platform during the course of 2015.”
