NEW YORK--(BUSINESS WIRE)-- trueEX, LLC, an electronic execution platform for the global interest rate swaps (IRS) market, announced today that it has executed a clearing agreement with CME Clearing. trueEX provides execution and processing services as a CFTC-regulated Designated Contract Market (DCM) for the global IRS market.
trueEX has worked closely with CME Clearing to complete testing and certification to provide the global IRS market with this regulated, scalable and automated platform for execution and clearing services.
As a result of recent regulatory changes, it is expected that a large percentage of derivatives transactions will be executed on regulated exchanges and cleared through central clearinghouses. The Dodd-Frank Act passed in the United States last year mandated execution and clearing of "standardized" OTC derivatives.
trueEX will provide much needed transparency, standardization and automation for market participants to execute interest rate swaps and related products in a CFTC-regulated platform with appropriate regulatory oversight and straight-through processing, with clearing enabled by CME Clearing’s leading risk management systems.
“CME Group has worked to provide the market with immediate clearing certainty. CME Clearing accepts trades in sub-second time, allowing clients to achieve real-time execution and clearing. When our execution is combined with CME Clearing’s technology, the market can greatly benefit from Dodd-Frank’s core principles being met,” said Sunil Hirani, CEO of trueEX.
“Trading on automated platforms, combined with central clearing, will provide much needed execution and capital efficiencies with the demand for regulatory oversight,” continued Hirani. “By connecting with CME Clearing we will provide market participants the ability to trade electronically and clear instantaneously through the most diversified derivatives clearinghouse, while delivering significant capital benefits. This is a significant value proposition for the marketplace.”
“CME Clearing continues to work closely with buy-side and sell-side participants, as well as execution platforms such as trueEX, to help all market participants adapt to the new environment,” said Michael O’Connell, Managing Director of Clearing Services at CME Group.
New York-based trueEX LLC, the first swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM), was designed from the ground up as the first Dodd-Frank compliant swaps exchange. Founded by CEO Sunil Hirani and co-founder Jim Miller in 2011, trueEX will initially trade interest rate swaps and add other liquid derivatives as appropriate.
Mr. Hirani also founded Creditex, the first electronic trading platform for credit default swaps (CDS), which was sold to ICE in 2008. He and members of the trueEX management team also launched T-Zero (now ICE Link).
The Dilenschneider Group
Leo Murray, 212-922-0900
Source: trueEX, LLC