IRS

Products and Services

IRS overview

platformWITHOUTcustzithTITLE

TraditionSEF offers execution, trade booking and reporting in CFTC regulated interest rate swap products, including vanilla rate products in multiple currencies, spreads, butterflies, spread-over treasury, CME/LCH switch trades and a number of other package transactions.

USD interest rate swaps trading (Trad-X platform)

Trad-X is Tradition’s award winning trading platform for interest rate swaps. Forming the backbone of TraditionSEF’s offering for interest rate products, the platform's matching engine is built using market leading technology, offers market leading functionality and has a proven ability to attract deep high-quality liquidity in a wide range of CME and LCH cleared interest rate products for both MAT and non-MAT transactions.

Trad-X delivers capability designed to meet the demands of today's market and a globally future-proof method of trading in a shifting regulatory landscape. Trad-X offers a flexible execution methodology, combining voice and electronic pools of liquidity to ensure the highest-quality trading experience. 

SC3

 

Trad-X Main Market and Order Book Windows+

To know more about our Platform, download the Trad-X brochure, and visit Trad-X.com

 Widely recognized as one of the early leaders in the newly formed SEF marketplace, Trad-X was designed and developed in conjunction with the leading global market participants. The result of this collaboration is the most advanced central limit order book available in the interest rate markets today (regularly ranked as the No1 CLOB in vanilla USD interest rates). Trad-X delivers the highest quality solution designed specifically to meet the demands of today’s evolving market structure and shifting regulatory landscape. This depth of liquidity has been recognized by industry specialists in their analysis of new and evolving market structure : 

 "The top-line results of the quantitative analysis found that in 92% of the scenarios, the mid-point price in the order book was better than that achieved via the RFQ"

Quantifying Interest-Rate Swap Order Book Liquidity - Greenwich Associates -  Q1 2016 

 

Accessible globally through our flexible execution methodology, Trad-X provides access to firm, irrefutable and transparent streamed two-way pricing from at least 12 of the world’s largest global banks ensuring the richest and most dynamic liquidity and the highest-quality trading experience is available to our market participants. Our market participants can access liquidity and execute the most complex trading strategies in the manner that best suits their trading style.

Trad-X facilitates both hybrid and fully-electronic order entry, allowing users to execute the most complex of trading strategies via voice instruction, direct click-and-trade central limit order book access, and auction services. It covers a broad range of products across USD, EUR and GBP currencies, including interest rate swaps, FRAs, overnight index swaps, and single and cross-currency basis swaps.

Methods of access:

    • Direct to the Central Limit Order Book via low-latency APIs
    • Click-and-trade on our award-winning proprietary trading platform (CLOB) GUI
    • Direct voice access to our highly skilled swap execution specialists (brokers) for work-up and voice RFQ
    • Via third party Independent Software Vendors (ISV’s)
    • Indirectly through on of our approved broker firm participants
    • Indirectly through approved bank agency platforms 

The Trad-X platform covers a broad range of USD interest rate products, including interest rate swaps, FRAs, overnight index swaps, and single and cross-currency basis swaps. To see a full list of the interest rate products offered by TraditionSEF, please refer to the interest rate asset class product listing.

Innovative new products helping market efficiency 

 Our leading position in global IRS markets has naturally led Tradition SEF to be seen as innovators in facilitating new market liquidity as and when it develops. A good example of this is the development of the LCH/CME CCP basis market that has grown substantially over the last 18-24 months. Driven by disparate funding costs for positions held across Clearing Houses, the market needed a solution that would enable quick, efficient and seamless “switching” between the Clearing Houses to better manage margin requirements for these cleared products. Trad-X promptly stepped into the market with a live market in the “switching” product which was launched in June 2014. Quickly establishing ourselves as the “go to” venue for this new market, we have solidified our position by not only capturing over 50% market share of trading activity, but also establishing the benchmark reference screen for the marketplace.

LCH CME Jun Dec

 LCH/CME Swaps market shares between June 2016 and Dec 2016

Source : Clarus Financial Technology

Trad-X facilitates both hybrid and fully-electronic order entry, allowing users to execute the most complex of trading strategies via voice instruction, direct click-and-trade central limit order book access, and auction services. It covers a broad range of products across USD, EUR and GBP currencies, including interest rate swaps, FRAs, overnight index swaps, and single and cross-currency basis swaps.

Developed in conjunction with key market participants, Trad-X provides firm, irrefutable and transparent streamed two-way pricing from at least 12 of the world's largest global banks. 

Non-USD interest rate swaps and other package transaction

In addition to our services for MAT interest rate products, TraditionSEF enables participants and customers of broker firm participants to enter orders or submit pre-arranged trades in a wide variety of Non-MAT interest rate swap products for execution, trade booking and reporting. 

Access to the TraditionSEF Non-MAT interest rate swap platform is available via direct connection to SEF execution specialists or through our list of authorized broker firm participants (a list of which can be found here). Interest rate swap products offered cover multiple currencies and include but are not limited to: EM interest rate swaps, inflation swaps, constant maturity swaps, interest rate options, Mexican TIIE swaps etc. To see a full list of the interest rate products offered by TraditionSEF please refer to the interest rate asset class product listing. 

For further details on how to become a broker firm participant to facilitate pre-arranged transactions, or to inquire as to how you may access our SEF as a participant or customer of one of our existing broker firm participants please contact our Onboarding team at :TradSEFOB@tradition.com

IRS Products

Products supported by TraditionSEF for IRS include but are not limited to the following:

  • Interest Rate Swap (IRS), Fixed/Float
  • Overnight Index Swap (OIS), Fixed/Float
  • Single Currency Basis Swap, Float/Float
  • Cross-Currency Basis Swap, Float/Float
  • Cross-Currency Swap, Fixed/Fixed
  • Cross-Currency Swap, Fixed/Float
  • Non-Deliverable IRS, Fixed/Float
  • Inflation Swaps
  • Constant Maturity Swaps
  • Constant Maturity Swap, Fixed/Float
  • Forward Rate Agreements (FRA)
  • DTCC GCF Repo Swaps, Fixed/Float
  • Interest Rate Swaps Specific to Underlying Currency
  • Interest Rate Options
  • Market Agreed Coupon (MAC) Swaps

For a complete list of IRS products and associated characteristics, please refer to TraditionSEF Rulebook, Appendix A.

Contact

To discuss how TraditionSEF can support your trading needs, e-mail tradsefob@tradition.com or call +1 212 238 5955


FOW SEF winner 2015        

 

FOW IDB winner 2015        

Derivs Awards logo 2015 winner        

Best Inter-Dealer Broker