trueEX, the innovative global interest rate swap trading platform, has built a solution to provide execution for Brazilian Real (BRL) interest rate swaps cleared at CME Group. The launch follows CME Group’s Q4 2015 launch of BRL interest rate swaps clearing, which has cleared more than 250 billion Real in notional from 25 market participants.
Through the collaboration, clients will be able to execute new risk, terminate or compact positions and process their positions directly at CME Group. BRL swaps traders will also be able to directly query their existing positions at CME via trueEX, just as they can with the 18 other currencies that are supported on trueEX.
trueEX and CME Group both introduced key contracts and have seen growing open interest in BRL interest rate swaps over the past year. The trueEX launch of Mexican Peso (MXN) interest rate swaps in January 2016 provided a new execution vehicle into MXN IRS clearing at CME Group, which now has active volume in both client and dealer-to-dealer trading. Similar to the other interest rate swaps offered on the trueEX platform, BRL swaps can be cleared and retrieved directly at CME Group without any middleware.
“We are excited to expand our important relationship with CME Group so that the benefits of execution, processing and clearing are available in this new, vibrant market,” said Sunil Hirani, CEO of trueEX. “Brazilian Real interest rate swaps are one of the fastest growing currencies for the swap market; so it makes sense to work with CME Group to offer the optimal execution, processing and clearing services for this important market.”
“Latin American markets have experienced substantial growth over the past year, and our clients have increased their voluntary clearing of MXN and BRL interest rate swaps.” said Sunil Cutinho, President, CME Clearing. “We are pleased to be working with trueEX in bringing these new services to market, so we can bring greater liquidity, transparency, and risk reduction services to these growing markets.”
trueEX LLC is a CFTC-regulated Swap Execution Facility (SEF) and Designated Contract Market (DCM) that currently supports 19 currencies. It has executed over $1.8 trillion in trading volumes, and $10 trillion in post-trade services. trueEX was named SEF of the Year at the 2016 Risk Awards and the GlobalCapital Americas Derivatives Awards in 2015 and 2016, having also captured recognition by being named to the Institutional Investor Tech 50 and Forbes Fintech 50 rankings in 2015.
CME Group currently offers global multi-asset class clearing for interest rate swaps (IRS), credit-default swaps (CDS), foreign exchange (FX), and commodities. It is the only global clearing house to offer clearing in 19 IRS currencies including the Mexican Peso (MXN), Brazilian Real (BRL) and US Dollar Swaptions (USD).