trueEX, LLC, announced today that it plans to launch a service to provide termination, compaction, re-balancing and back-loading services to CME clearing clients.
Pending CFTC review, trueEX, the first CFTC-regulated Designated Contract Market (DCM) for interest-rate swaps, would provide CME clearing clients with access to trueEX's proprietary PTC (Portfolio Terminations and Compactions) platform.
"We are pleased to offer trueEX services to our clients as part of our ongoing efforts to provide the most efficient OTC clearing solution," said Kim Taylor, President, CME Clearing. "Our clients tell us that they need to actively manage their cleared portfolios by reducing line items and maintaining the most capital efficient state of their aggregate risk across cleared and bilateral swaps. This service is one way we can help them achieve that objective."
Sunil Hirani, CEO and founder of trueEX, added: "trueEX's PTC platform would be the first and only platform to provide clients the ability to directly and instantly facilitate automated terminations, compactions, re-balancing and back-loading of legacy bilateral trades into CME's clearinghouse, and also to help clients efficiently manage their portfolio of cleared swaps."
PTC was designed with significant input from both buy-side and dealer participants to help the interest rate swap community cope with regulatory and compliance requirements of Dodd-Frank. trueEX's PTC platform would be the first automated platform to allow the buy-side instant and direct access to perform key life-cycle processes on preexisting swaps in the CME Clearinghouse: terminations, compactions, re-balancing and back-loading.
"The current process can take hours to execute, is manual, prone to operational risk and cumbersome. It can now be facilitated on the PTC platform in a manner of minutes," said Hirani. "PTC would save both buy-side and dealers significant time, facilitate margin and capital efficiencies, and reduce operational cost and risk in the pre-trade and post-trade process."