NEW YORK, Dec. 11, 2013 /PRNewswire/ -- trueEX, the first CFTC-regulated electronic exchange for interest rate swaps (IRS), today announced that it has executed its first PTC trades with AllianceBernstein, JP Morgan, MKP Capital and Societe Generale.
Portfolio Terminations and Compactions (PTC) is an automated trueEX platform providing much needed operational and connectivity benefits to clients who have a need to terminate, compact, back-load and allocate cleared swaps with direct and live connectivity to both CME and LCH.
PTC was designed with significant input from asset managers, hedge funds, banks and Clearing Firms to help the interest rate swap community cope with the operational burdens of executing cleared terminations and compactions.
"Asset managers such as AllianceBernstein need automated platforms like trueEX with direct connectivity to Clearing Firms (FCMs), Swap Data Repositories (SDRs) and Clearinghouses (CCPs) to help execute cleared terminations. The current process is manual, prone to operational risk and can take hours - all of this is reduced to minutes with direct CCP connectivity with full Straight Through Processing (STP) benefits being provided to the buy side," said Matthew Scott at AllianceBernstein.
trueEX is committed to providing our clients the most efficient execution, processing and automated solutions as they adapt to the Dodd-Frank regulatory environment. trueEX will continue to provide the most innovative solutions to the IRS market.
Hedge Fund and Asset Managers have a need to leverage the economies of scale provided by trueEX's PTC platform that can help terminate and compact cleared trades. trueEX's unique ID protocols further help the industry by ensuring that FCMs and CCPs can appropriately clear and margin portfolios.
"SG has been an early adopter of innovative technology solutions like trueEX that help the IRS market create economies of scale for all market participants. SG is committed to helping build liquidity and scale for new entrants to create a competitive marketplace," said Alan Mittleman, Global Head of USD Rate Trading at Societe Generale.
New York-based trueEX LLC operates the first swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM). As an exchange and temporarily registered swap execution facility ("SEF"), trueEX offers a unique execution venue to facilitate the regulatory transition that is underway in the derivatives markets. trueEX's exchange provides an anonymous central limit order book (CLOB). trueEX's SEF entity provides RFQ trading protocols and the proprietary PTC system (Portfolio Terminations and Compaction) for the efficient trade management of existing positions with direct connectivity to multiple clearing houses. The Company will initially trade interest rate swaps and will add other liquid derivatives to its portfolio.
trueEX was founded by the team who also founded Creditex, the first electronic trading platform for credit default swaps (CDS). In 2008, the team sold Creditex to Intercontinental Exchange, where they subsequently led the initiative to acquire The Clearing Corporation (TCC) which allowed ICE to clear credit derivatives globally. Members of trueEX's management team also launched T-Zero (now ICE Link) and led the initiative to create Credit Event Fixings and Delta Neutral Auctions (DNA). For further information visit www.trueex.com