Interest rate swaps platform Trad-X has hit record trading volumes for US dollar interest rate swaps.
In May, Trad-X executed 680 trades equating to a notional of USD37 billion.
These electronically executed trades accounted for almost 24 per cent of all USD trades at Tradition.
Since Trad-X USD was launched, the platform has executed well over 6,000 US dollar interest rate swap trades, worth a notional value in excess of USD290 billion.
Daniel Marcus, chief executive of Trad-X, says: “The introduction of regulatory requirements to trade interest rate swaps on SEFs in the US has shown a gradual move towards hybrid and electronic trading on our central limit order book. Trad-X continues to offer an unparalleled depth of liquidity through a unique combination of our voice and electronic liquidity pools, and the full hybrid support of our voice brokers has been integral to the success of the offering.”
Mike Leibowitz, chief operating officer of Tradition, says: “Trad-X was designed by the market for the market in advance of regulatory reform. With the support of participants, we have seen a material increase in volumes traded on the platform this year. This is due to the high quality of liquidity available on our cutting-edge proprietary technology.
“As an integral part of our SEF strategy, we have seen our USD interest rate swaps platform emerge as an early leader in SEF volumes, which validates our flexible execution strategy in line with the SEF rules.”
Trad-X has also launched a CCP position switch service. The CCP position switch service will go live for USD interest rate swaps in June for trades between CME’s Clearing House and LCH.Clearnet Ltd.
Marcus says: “We are committed to continually developing the platform in line with Tradition’s technology focused strategy. The CCP position switch service is the first of many innovative enhancements that will be incorporated into Trad-Xglobally over the course of 2014 and beyond.”