First FCM completes production testing with CreditLink for pre-trade clearing certainty
New York/London, 15 May 2013 – Traiana, the leading provider of post-trade and risk solutions, announces today that the first futures commission merchant (FCM) has completed production testing for Traiana’s central risk management infrastructure for swaps clearing. With the completion of testing, this firm is ready to go live with clients trading interest rate derivatives and credit default swaps on swap execution facilities (SEFs) or designated contract markets (DCMs) with pre-trade order screening, as required under the new Dodd-Frank clearing regulations. Five additional FCMs as well as further buyside firms, fund servicing firms, and order management service providers are currently in the process of joining the service and production testing.
Developed with input from leading FCMs and delivered using Traiana’s proven cross-asset CreditLink service, the service offers clearing firms and buy-side firms the ability to manage trading and clearing limits in low latency for interest rate, credit and foreign exchange (FX) swaps. Firms will be able to pre-screen orders to trade swaps prior to execution, ensuring certainty of clearing acceptance by their clearing member at the time of execution. This is one of the fundamental tenets of CFTC regulation 1.73, designed to reduce systemic risk and ensures that clearing firms are in compliance with regulations in the United States and Europe.
Built on Traiana’s trusted robust and scalable Harmony infrastructure, the service will be integrated to and supported by the leading SEFs and DCMs.
Designed to maximize access to liquidity and reduce limit fragmentation for buy-side firms, CreditLink supports request-for-quote and request-for-streaming trading using a centralized limit check (Ping model) and also gives clients the ability to allocate limits directly to specific trading venues to minimize latency (Push model), which is important for executing brokers, market makers and venues using central limit order books. CreditLink also provides buy-side firms centralized management of limits across all their clearing firms, trading venues and CCPs to reduce fragmentation of limits, as well as pre-trade ‘what-if’ checking, essential for firms managing funds and trading on behalf of separate accounts/legal entities to be compliant with new swaps clearing regulations. Furthermore, the service also supports real-time post-trade limit checking of block trades and allocations presented for clearing, important for clearing firms who must quickly accept or reject trades under real-time clearing rules.
“We are very pleased that the first FCM has completed production testing, as we all continue to prepare the industry for upcoming deadlines for mandatory clearing,” said Nick Solinger, Chief Marketing Officer, Traiana.
Further resources for FCMs and buy-side firms are available at http://www.traiana-creditlink.com/
CreditLink provides trading platforms, clearers/prime brokers, executing banks and buy-side firms the ability to monitor and manage pre- and post-trade credit in real-time across multiple trading venues in a consolidated view. CreditLink supports all trading models across FX, exchange traded derivatives, CDS and fixed income and serves hundreds of buyside, broker, prime-brokers and trading venues.
Traiana, Inc. (www.traiana.com) provides global banks, broker/dealers, buy-side firms and trading platforms with services to monitor pre- trade risk and automate post-trade processing of financial transactions in listed and over-the-counter trading markets. Traiana’s solutions and the Harmony Network have become the market standard for post-trade processing of foreign exchange, exchange traded derivatives, fixed income, CDS and synthetic and cash equity transactions. Traiana, an ICAP company, is headquartered in New York City with offices in Chicago, Hong Kong, London, Tel Aviv and Tokyo.
Candice Adam, Argentus PR
Tel +44 (0)20 7397 2915