Interactive Data is to provide a full suite of services to trueEX, the first interest rate swaps exchange approved by the Commodity Futures Trading Commission (CFTC) as a Designated Contract Market (DCM).
Interactive Data is providing trueEX with low-latency hosted services through its 7ticks platform.
These services will include monitoring and support for the trueEX matching engine and network architecture, along with connectivity to leading global exchanges such as the CME and the ICE via the 7ticks network for post trade execution clearing solutions.
trueEX market participants will be enabled to access financial exchange matching engines from anywhere on the 7ticks global network.
“We provide trueEX and its market participants with managed services designed to help address key issues related to the new swaps trading environment, helping to facilitate market participants with liquidity, fast execution and clearing,” says Emmanuel Doe (pictured), president, trading solutions group for Interactive Data.
Interest rate swaps were previously traded mainly by phone and lacked regulatory oversight. As part of the Dodd-Frank Wall Street Reform and Consumer Protection Act, OTC derivatives trading is now mandated to be electronically executed and cleared in order to provide greater market transparency and efficiency while also reducing systematic risk. In response to this mandate, trueEX founded the first DCM that will serve the USD300trn global interest rate swaps market when it begins operations in early 2013. This electronic exchange has been designed to meet the needs of market makers, asset managers, hedge funds and other buy-side firms.
“Our clients and market makers look to us to help them meet their regulatory reporting, execution, and clearing requirements through our electronic platforms, as well as provide them with a state-of-the-art facility with all the benefits of security, reliability and redundancy that Interactive Data provides,” says trueEX chief executive officer Sunil Hirani.
Hedge funds, ISVs, FCMs, investment banks, proprietary trading firms and exchanges, use the 7ticks network, which provides direct market access (DMA) to more than 50 global markets, with advanced co-location and proximity hosting. DMA connectivity is available for a wide range of global futures, options, equities and FX exchanges and trading venues for multi-asset class and ultra-low latency trading.
Clients using Interactive Data’s 7ticks network also have access to the Interactive Data Consolidated Feed, which delivers low latency data from more than 450 sources worldwide. The sources in the Consolidated Feed cover more than 150 exchanges, 110 contributors of OTC data and include multi-asset class instrument coverage and extensive Level 2 data. The feed is used by financial institutions globally to power algorithmic and electronic trading applications, and is now supported by ticker plants located throughout North America, Europe and Asia.
The 7ticks network also provides direct connectivity to dozens of global futures and options, equities and FX exchanges and trading venues for multi-asset class and ultra-low latency trading.