SUMMIT, N.J., July 29, 2013 /PRNewswire/ -- TeraExchange filed its application to become a Swap Execution Facility (SEF) with the Commodity Futures Trading Commission (CFTC) on Friday July 26th, 2013.
TeraExchange will empower market participants to trade across various financial instruments including Interest Rate Swaps, CDS Indices, CDS Options and Single Name, NDFs and other cleared OTC products.
TeraExchange CEO Christian Martin said, "We are committed to being a leading SEF by delivering the most transparent and innovative marketplace available. We are providing customers across the entire marketplace a robust solution that has been tailored to meet the new regulatory requirements as well as the myriad needs of traders. We are very pleased to be included among the first to file for designation as a Swap Execution Facility with the CFTC and we welcome their oversight in this dynamically changing landscape."
CFTC rules that have emerged from Dodd-Frank are designed to insert transparency, safety and oversight into the OTC derivatives market. It is expected that by the fall of this year, all U.S. financial institutions will be required to be clearing their swap trades and thereafter transacting swap trades on a SEF to maintain compliance.
TeraExchange offers market participants an anonymous central-limit order book for execution of a wide range of derivative instruments. Founded in 2011 and based in Summit, New Jersey, TeraExchange operates today as an Exempt Board of Trade (EBOT).
TeraExchange will make available for trading all OTC derivative instruments that are listed for clearing by various clearing houses, regardless of underlying reference or tenor. Initially, those instruments will include Interest Rate Swaps, CDS Index and CDS Index Options and Single Names and NDFs.
With Customized Clearable Instruments (CCIs), TeraExchange offers market participants the ability to define the precise characteristics of clearable derivatives that they need in order to hedge, consolidate or terminate risk positions. Market participants can instantly obtain competitive quotations for those customized instruments from the entire TeraExchange marketplace.
In addition to its core trading platform, TeraExchange also makes available two trading tools for complementary use by its market participants. TeraDirect is a sophisticated front-end execution management system that displays all information and functionality needed to trade on TeraExchange. TeraCheck is a proprietary pre-trade credit risk management engine that allows market participants and their clearing members to enter and maintain appropriate risk controls. TeraCheck integrates seamlessly with in-house and external credit hub systems. Participants who wish to design their own execution solutions to trade on TeraExchange may connect via FIX, FAST and other protocols. For more information about TeraExchange, please visit www.TeraExchange.com or e-mail firstname.lastname@example.org.
KCSA Strategic Communications