Traiana, a provider of pre-trade risk and post-trade processing solutions, has launched an enhanced version of CreditLink with features focused on buy-siders trading on swap execution facilities (SEFs).
The updated CreditLink adds real-time notifications of SEF orders and executions and “what-if” checking for new trades and allocations to ensure planned trading activities are within clearing limits.
In addition it enables bunched-order allocations with integration to leading clearing houses across interest rate swaps and credit default swaps, automated notifications, alerts and reports to help firms manage margin requirements and limits with their futures commissions merchants (FCMs).
Buy-side clients complying with mandatory SEF trading are wrestling with new processes for executing, clearing and allocating swaps, with significant added complexity for traders, middle office and risk managers.
Nick Solinger, Traiana head of product strategy and chief marketing officer commented: “Buy-side market participants trading on SEFs have pre- and post- trade requirements that impact not only trading teams, but also compliance and risk management processes.”
Solinger added, “Extending our services to the buy-side provides greater visibility and flexibility, which supports the development of a smoothly functioning market in a new regulatory environment.”
CreditLink has acted as the pre-trade credit-checking hub for electronic credit default swap and interest rate swap trading since the introduction of mandatory SEF trading in February.
Over 6,050 buy-side client organisations have managed pre-trade clearing certainty using CreditLink, and over 72,000 accounts from both buy-side and OTC clearing FCMs have connected to CreditLink. CreditLink is now connected to the major SEFs, clearing houses and 16 FCMs.
US CFTC regulations require that a clearing member define limits and must carry out pre-trade credit checks on clients’ orders prior to execution on SEFs.
To help clients meet these regulatory requirements, CreditLink acts as a hub and provides trading platforms, clearers/prime brokers, executing banks and clearing clients the ability to monitor and manage pre- and post-trade credit in real-time across trading venues in a consolidated view.