trueEX LLC, the first CFTC‐regulated electronic exchange for interest rate swaps (IRS), today announced that UBS has completed full certification and testing on the trueEX exchange and will offer client access to trueEX pricing as part of their liquidity aggregation strategy. UBS will be providing markets and routing client flows on the most liquid interest rate swaps as well as the Standard Coupon Standard Maturity (SCSM) swaps that are ISDA MAC (Market Agreed Coupon) compliant. In addition, UBS will offer buy‐side clients seamless electronic access to the consolidated liquidity as well as the PTC platform (Portfolio Terminations and Compactions) on trueEX.
On May 16th, 2013, the CFTC adopted final rules relating to Dodd‐Frank’s mandatory trade execution requirement. In anticipation of the additional regulatory, reporting, compliance, clearing and trading requirements, trueEX has created the world’s 1st IRS exchange to help market makers, clearing members (i.e. FCMs – Futures Commission Merchants), asset managers and global hedge funds meet these additional requirements.
“We are pleased to have worked extensively with trueEX over the past 18 months to fully test, refine and on‐board with trueEX. Many global clients are demanding fully automated, standardized, transparent and regulated platforms to execute their IRS transactions in line with regulatory requirements,” said Chris Murphy, UBS Global Head of Rates & Credit. “Our Fixed Income clients will benefit greatly by having access to the liquidity, regulatory compliance and clearing connectivity benefits of trueEX, all of which will be accessible through our liquidity aggregation service and our innovative UBS NEO platform.”
“The investor community is in need of an electronic, independent and regulated exchange for IRS transactions. We are thrilled to have worked closely with UBS to develop and refine both our business model as well as our technology solutions. Global IRS market participants will benefit greatly from having UBS and their diverse client bases directly connected to the trueEX exchange. Imagine that up to this point, institutional investors managing hundreds of billions in assets have been unable to remain anonymous and could not create limit orders in the IRS market – something that is available to every single individual investor buying or selling 100 shares of a stock,” said Sunil Hirani, CEO of trueEX.
With UBS leading the way, there are an additional six IRS market makers that are at an advanced stage of legal on‐boarding, testing and certification in preparation to go‐live with making markets in liquid interest rate swaps.