Swap Matching Engine Debuts

Terry Flanagan

RTS Realtime Systems provides central order routing and execution system for OTC products.

Global trading systems providers are building out the nuts-and-bolts required to operate swap executions facilities, which by law must capture trades electronically and offer central clearing of over-the-counter (OTC) swaps.

RTS Realtime Systems has launched RTD CORE (Central Order Routing and Execution System) to help firms internal and external order routing and matching needs across global markets, more easily manage their global exposure, share vital information internally, and reduce costs.

The solution offers a one-stop, cost-effective resource that enables SEFs to get to market quickly and securely without making substantial investments in new infrastructure, the company said.  RTS expects to complete the connectivity to the major clearing houses supporting SEFs by the end of the year.

RTS already offers connectivity across asset classes to exchanges and markets globally. As a result, SEFs using RTS technology will be able to offer market users a single platform for multi-asset OTC and exchange-traded execution.

The OTC offering requires a more customized marketing model and workflow process than the listed offering.

“There are fewer transactions with much higher trading values on the OTC side,” Steffen Gemuenden, CEO of RTS Realtime Systems Group, told Markets Media.

Futures clearing firms and broker-dealers participating in these SEFs will be able to use RTS technology to set and control risk levels on the platform, with functionality for risk monitoring and the application of built-in limits.

Products traded and matched on RTD CORE will include equities, futures, options, foreign exchange, interest rates and custom OTC products.  RTD CORE provides multiple interfaces to exchange clearing facilities.

The platform provide pre-execution risk checking and interfaces to a variety of OTC clearing venues including CME Group’s CDS and interest rate swaps facilities, ICE Trust, the London Clearing House and New York Portfolio Clearing (NYPC).

“We offer a complete solution, with an off-the-shelf matching engine, FIX gateway, front-ends, clearing connectivity and ASP outsourcing,” said Gemuenden. “Clients can include exchanges, OTC platforms, brokerage firms, supply chain management firms, commodity trading houses, hedge desks and SEFs, among others.”

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