trueEX Processes Over $100bn of Bunched Order Allocations

NEW YORK, March 25, 2014 /PRNewswire/ -- trueEX LLC today announced it has successfully processed over $100bn in bunched order allocations, enabling the buy-side community to overcome a significant hurdle in complying with the regulatory trading mandate for swaps. trueEX's innovative Post-Trade Services (PTS) platform is execution venue and clearing house-agnostic and enables Futures Commission Merchants (FCMs) and clients to allocate these orders post-trade.  Since the beginning of February, the bunched trades have been cleared by Credit Suisse Securities USA (as FCM) and LCH.Clearnet's SwapClear clearing service. There are an additional two FCMs in the final stages of testing and certification with trueEX.

The introduction of new regulatory requirements for mandatory trading on swap execution facilities (SEFs) and designated contract markets (DCMs) has placed a significant burden on buy-side firms. Bunched orders, which enable asset managers to perform post-trade allocations of swaps in a similar way to the futures and equities markets, help clients achieve best price, increase liquidity, reduce operational risk, and maximize ease of execution by allowing clients to trade in their top level (suspense) account being cleared by their standby clearing firm.

trueEX's PTS platform allows buy-side clients and their FCMs to directly allocate executed and cleared bunched order trades to a client's respective sub-accounts at the clearing houses.  The platform offers a direct connection to the major clearing houses and can process allocations from any execution venue while providing real-time updates on the allocation status.

"One of the most significant challenges for the asset management and hedge fund community lies in the post-trade workflow," said Sunil Hirani, CEO and co-founder of trueEX. "By providing a fully-integrated and agnostic solution to the challenge of bunched order allocations, we are responding to an immediate and pressing need from the buy-side community."

"As the evolution to central clearing progresses, there is increasing focus on streamlining the post-trade workflow. The processing of bunched orders is one of many innovations that we are currently working on in this area to deliver even greater operations efficiencies to members and their clients," said Daniel Maguire, global head of SwapClear.

About trueEX

trueEX LLC operates the first exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM) for swaps. As an exchange and temporarily registered swap execution facility (SEF), trueEX is ideally positioned to facilitate the regulatory transition underway in the derivatives markets.  Its exchange provides an anonymous central limit order book (CLOB), while its SEF provides request-for-quote (RFQ) trading protocols and a proprietary portfolio terminations and compactions (PTC) system for the efficient trade management of existing positions through direct connectivity to multiple clearing houses.  The PTS (Post-Trade Services) platform efficiently facilitates the processing requirements associated with the recent regulatory transition. The Company is based in New York and enables the trading of interest rate swaps by all market participants. It will add other liquid derivatives to its portfolio in the near future.

trueEX was pioneered by the team which founded Creditex, the first electronic trading platform for credit default swaps (CDS).  In 2008, Creditex was sold to Intercontinental Exchange (ICE), where its management team led the initiative to acquire The Clearing Corporation (TCC), which allowed ICE to clear credit derivatives globally. Members of the trueEX 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

SOURCE trueEX LLC