Tradition has reported an increase in demand the for SOFR market data via its TraditionDATA offering to gain an accurate picture of market context and colour.
Tradition has reported an increase in demand the for SOFR market data via its TraditionDATA offering to gain an accurate picture of market context and colour. As one of the world’s largest interdealer brokers in over-the-counter (OTC) commodity and financial products, Tradition has seen a strong increase in trading activity linked to the secured overnight financing rate (SOFR).
During January, SOFR-linked trades facilitated by Tradition’s voice brokers and executed on its hybrid and electronic trading venues in the United States, known as swap execution facilities (SEFs), accounted for approximately 65 per cent of all inter dealer broker, on-SEF notional trading activity.
This activity runs in parallel to the push by global regulators to have market participants adopt new Risk-Free-Rates and highlights the effort made by Tradition to stay at the heart of global market developments.
Scott Fitzpatrick, Global Head of TraditionDATA, says: “As the global derivatives industry begins the move from LIBOR to new Risk-Free-Rates, it is critical that market participants have access to the highest quality data associated with these new markets backed by the deepest and broadest pools of liquidity. This will help ensure, as much as can be expected, a smooth and seamless transition.”