trueEX LLC, the first CFTC‐regulated DCM for swaps, today announced that execution services for swaps will be provided on both of its CFTC‐regulated platforms (DCM & SEF) commencing on October 2nd, 2013.
For the first time in the swaps market, trueEX will offer its innovative anonymous Central Limit Order Book (CLOB) for the most liquid swaps as well as SCSM (Standard Coupon Standard Maturity) swaps, all with pre-trade certainty of clearing and the benefits of standardization, transparency, anonymity and the ability for market participants to submit limit orders.
trueEX has executed clearing agreements and will provide instant and direct connectivity to both CME and LCH for all swaps that are clearable at CME and LCH. trueEX will be live with CME on October 2nd and with LCH shortly thereafter.
Participants of trueEX are required to have a clearing agreement with a bona fide clearing member (FCM) of CME or LCH to access the trueEX marketplace. Participants are NOT required to have FIA‐ISDA Cleared Derivatives Execution Agreements with other participants on trueEX. This enables trueEX to offer its innovative services to the broadest possible market. It also enables a broad group of institutions the ability to be Dodd‐Frank compliant beginning on October 2nd.
trueEX will also offer its market‐leading Portfolio Terminations and Compactions (PTC) platform on its SEF (Swap Execution Facility) under a disclosed and RFQ (Request For Quote) protocol. This allows the institutional investor to direct the inquiry to the participants it chooses for the portfolios being terminated or compacted.
Until the launch of PTC on October 2nd, market participants in the swaps market have had to manually terminate and compact swaps. PTC allows trueEX clients to automate the manner in which they terminate or compact swaps, significantly reducing operational risk and ensuring precise trade recognition at CME or LCH.
“The investor community needs an electronic, independent and regulated exchange for swaps transactions. trueEX will provide institutional investors the ability to choose between disclosure and anonymity. They will be able to execute on their own or someone else’s orders. In addition, they will have pre‐trade certainty of clearing. trueEX swaps are fungible, commoditized and clearable at both CME and LCH.” said Sunil Hirani, CEO of trueEX.