OTC derivatives trading software provider Baymarkets has released a ‘SEF in a box’, designed to provide everything needed to set up an electronic trading venue.
Under the Dodd-Frank Act in the US, the bulk of OTC derivatives are to be moved onto new centrally cleared swap execution facilities (SEFs). The ‘SEF in a box’ aims to provide users with front-end functionality, price discovery, trade execution, settlement, clearing and revaluations and a toolkit for complex combination spreads, asset chain trading recaps and data distribution.
Using the same technology that already powers Singapore OTC derivatives venue the Cleartrade Exchange, Baymarkets’ new offering includes all links, APIs, tools for hedging and risk management, position keeping and connectivity to settlement and clearing facilities. It is available via cloud technology as a Software as a Service (SaaS), and will be sold and marketed by the Cleartrade Exchange, based in Singapore and London.
“With the new global regulatory climate as a driver, our ‘SEF in a box’ provides brokers with a low-cost route to electronic trading, settlement and clearing services,” said Peter Fredriksson, CEO and co-founder of Baymarkets.
Richard Baker, CEO of Cleartrade Exchange, added that the platform had been specifically designed for ease of set-up and fast deployment – enabling trading firms to quickly embrace the upcoming Dodd-Frank rules for the trading of OTC derivatives.