TeraExchange Connects to CME Clearing to Provide Margin Relief to Customers Trading Interest Rate Swaps, Eurodollar and Treasury Futures

SUMMIT, N.J., June 25, 2013 /PRNewswire/ — TeraExchange, an electronic swap execution platform (SEF), today announced that its operations are fully connected to CME Clearing and are ready for trading of cleared interest rate and credit swaps.

via Pocket http://finance.yahoo.com/news/teraexchange-connects-cme-clearing-margin-135400292.html June 27, 2013 at 07:56PM

Javelin OTC Derivatives Establishes Presence in Telx’s Chicago Data Center

Javelin OTC Derivatives Establishes Presence in Telx’s Chicago Data Center


Telx, a leading provider of global interconnectivity, cloud enablement services and datacenter solutions, today announced at SIFMA Tech 2013 that Javelin Capital Markets, an OTC derivatives execution platform, has leveraged Telx’s network & interconnection rich Cloud Connection Center, “CHI1” at 350 East Cermak Road, Chicago, Illinois, providing Javelin with access to Telx’s extensive Financial Services community. As a colocation and interconnection client in Telx’s strategically located data center in downtown Chicago, Javelin can now offer Telx’s financial community high-performance connectivity to derivatives execution platforms for Interest Rate Swaps and Credit Default Swaps. Javelin offers both anonymous electronic and voice-hybrid methodologies for trade execution.

Newly formed Swaps Execution Facilities (SEFs), that have emerged as aspects of Dodd-Frank become implemented, are incorporating their services in secure data center environments. Low-latency connectivity is a critical component for the OTC Derivatives market linking SEFs and Central Counterparty Clearing (CCPs). With CCPs being located in Chicago, the proximity of Telx’s CHI1 facility at 350 East Cermak provides financial customers with high-performance and flexible connectivity to Javelin as well as to other SEF engines from a single location.

“As aspects of Dodd-Frank become cemented in the financial community, the need to establish SEFs in secure environments is a crucial step for our eventual classification as a Swap Exchange Facility,” said Michael Black, MD of Infrastructure of Javelin. “Telx’s ability to provide us with access in their premier Chicago facility, and their proximity to the clearing venues, swaps execution facilities, and buy-side participants put us in a strong market-leading position to service current and future clients.”

“We are excited to have Javelin join the expanding Telx financial ecosystem in our CHI1 facility. Javelin’s secure exchange platform with a state of the art user interface is well positioned in the rapidly changing OTC Derivatives market,” said Shawn Kaplan, general manager of Financial Services for Telx. “In recent months we have seen an increasing number of trading systems turn to Telx and our CHI1 facility, most recently with the announcement of Sky Road joining Telx’s financial community. Javelin and other industry leading financial institutions at 350 East Cermak benefit by connecting with other financial institutions in the facility, which allows them to offer their full suite of services with flexible connectivity to current and future clients.”

Telx’s CHI1 facility, located in the South Loop of the Chicago Central Business District, provides customers with the financial eco-system at 350 Cermak, one of the leading financial eco-systems in the world. As the operators of the “Meet-Me-Room,” and one of the largest colocation providers at the CHI1 facility at 350 Cermak, Telx provides industry leading data center and connectivity services for the global financial community.

Attendees at SIFMA Tech 2013 in New York City can register to attend Telx’s grand opening event of its new flagship data center, NJR3 in Clifton, New Jersey on June 19, 2013 from 3:00 p.m. to 7:00 p.m. Round-trip transportation will be provided by Telx for all registered guests. The event will feature a keynote address by NFL Legend Phil Simms, along with public remarks Clifton Mayor James Anzaldi, State Senator Nia Gill, and Telx’s Executive Vice President of Engineering and Construction Michael Terlizzi. Cocktails and refreshments will be served, and tours of the new data center will be given.


Prism Valuation Enhances Lat-Am Derivative Valuation Service

Prism Valuation Enhances Lat-Am Derivative Valuation Service


Prism Valuation has recently introduced two enhancements to its Derivative Valuation Service for Lat-Am products. Firstly, it now offers its clients the choice of discounting valuations for Brazilian Real (BRL) CDI zero coupon swaps using a curve constructed from USD/BRL non-deliverable forwards and swaps. This is in addition to the already existing option of allowing forecasting of the forward CDI rates using either an on-shore or an off-shore curve.

The non-deliverable curve discounting option is now being delivered to several clients trading these instruments. In addition, Prism has recently added support for the valuation of Colombian Peso (COP) OIS swaps, which can also be discounted using deliverable or non-deliverable curves. In addition to BRL and COP, Prism currently delivers IRS and other derivative valuations for Chilean Peso (CLP), Mexican Peso (MXN) and Peruvian Nuevo Sol (PEN) in the Lat-Am region.

“Supporting non-deliverable discounting for BRL and other Lat-Am and Asian interest rate swap types reflects Prism’s continuing commitment to providing a flexible, robust framework to meet clients’ derivative valuation requirements. We are always willing to make the effort to broaden our coverage and utilize emerging methodologies in order to deliver the best possible service” comments Keldon Drudge, CEO.


ISDA Publishes Market Agreed Coupon Confirmation for Interest Rate Swaps

The International Swaps and Derivatives Association, Inc.

via Pocket http://www.derivsource.com/articles/isda-publishes-market-agreed-coupon-confirmation-interest-rate-swaps April 26, 2013 at 05:58PM

Israel’s Bank Leumi selects Calypso for capital markets support


First Published Monday, 8th April 2013 from Automated Trader : Automated Trading News

Calypso to deliver full cross-asset, front-to-back office functionalities for first major Israeli client

London – Calypso Technology, the capital markets platform provider, has been selected by Israeli banking corporation Bank Leumi, to provide a full cross-asset, front-to-back office solution to support its core capital markets business.

The Calypso platform will provide cross-asset support, including interest rate derivatives, providing all functionality from front office trading through to final delivery and settlement. Specific functionalities will include trading, pricing, risk monitoring, trade processing, settlement, delivery and position-keeping. The platform will also provide a flexible framework, allowing the Bank to bring new products and instruments to market.

“At Bank Leumi, we were looking for a way to monitor global risk exposure of the Bank, increase actual services capabilities and extend our products and services to our customers and the overall market. Calypso’s solution would clearly allow us to achieve this aim and support our overall business objectives,” said Professor Daniel Tsiddon, Deputy CEO, Bank Leumi, who signed the contract with Kishore Bopardikar, CEO and President of Calypso Technology in Tel Aviv in December 2012.

This announcement marks the first signing for Calypso with an Israeli financial institution. “We are delighted to be working with Bank Leumi and supporting their growing and exciting capital markets business,” said Mr. Bopardikar. “Our success here truly demonstrates the demand for tools that allow regional customers and their clients to access global markets. We look forward to working closely with Bank Leumi and playing an important part in the bank’s expansion.”

Big Bang for IRS? Standardised Coupons Coming?


Like the “big bang” for CDS which moved them to standard coupons, “The nonbinding proposal would see some of Wall Street’s biggest customers trade interest-rate swaps on the same payment dates and coupons, rendering the contracts more like futures that trade on exchanges.”

The underlying purpose I believe would be to develop a market for swaps which could more easily be traded in and out of – the only way to net an IRS is to collapse multiple trades which are economically identical (same price, coupon dates and other terms) into one replacement trade with the net notional.

This move would seek to define IR Swaps which would have pre-defined fixed rates, and standard coupon dates, which would make netting much easier. For instance a ‘standard’ IRS might have a 2.5% coupon and start on the 1st of the month in each quarter. Entering into an IR Swap at 2.5% when the market is above or below that rate would require a one off fee payment at inception to adjust for the difference between the standard coupon and the market price. Starting a swap on a non-standard trade date would require a stub period until the start of the standard regular period coupon dates.

No market infrastructure change would be required to support this move, as (I believe) CCPs supporting IR Swaps will allow stub periods already, and the settlement of an up-front fee has been designed into their service, one way or another.

PIMCO, SIFMA and Blackrock are amongst the firms driving discussions, the full article is via the link below but requires subscription.


FIX Protocol Ltd Publishes Guidelines To Advance Trading Practices In Response To Exponential Growth In Electronic Bond Trading

FIX Protocol Ltd (FPL), the non-profit, industry standards organisation at the heart of the global electronic trading community, today published recommended best practices and accompanying implementation guidelines for the electronic trading of bonds.

via Pocket http://www.mondovisione.com/media-and-resources/news/fix-protocol-ltd-publishes-guidelines-to-advance-trading-practices-in-response-t/ February 19, 2013 at 04:33PM

Deutsche Börse Group : Deutsche Börse Group

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Deutsche Börse Group : Deutsche Börse Group

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via Pocket http://deutsche-boerse.com/dbg/dispatch/en/notescontent/dbg_nav/home/INTEGRATE/mr_pressreleases?notesDoc=DC95B8749FE5D11AC1257B16003B3890&newstitle=eurexreceivespermissiontooffer&location=home February 19, 2013 at 04:17PM

First Hedge Fund Joins EurexOTC Clear for Client Clearing

Eurex Clearing: The European hedge fund Whard Stewart Master Fund has joined the client-clearing services of the new EurexOTC Clear for Interest Rate Swaps (IRS). J.P.

via Pocket http://www.derivsource.com/articles/first-hedge-fund-joins-eurexotc-clear-client-clearing February 10, 2013 at 09:58PM

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