Traiana's risk management service for swap clearing is set to go live with users after the post-trade solutions provider completed testing with its first futures commission merchant (FCM).
The tool, CreditLink, offers firms the ability to manage trading and clearing limits with low-latency for interest, credit and foreign exchange swaps. It is also aimed at giving market participants certainty of clearing acceptance by pre-screening orders before execution.
Traiana yesterday announced the first futures commission merchant (FCM) had tested the product and it was ready to go live. Five others and further buy-side firms, fund servicing firms and order management service providers are currently in the process of joining the service.
The product goes live in time for new clearing rules taking effect for the buy-side in the US. Under the US' Dodd-Frank Act and the European markets infrastructure regulation (EMIR), standardised swaps must be centrally cleared and reported.
Swap dealers were required to clear OTC derivatives since March in the US, but the deadline for most buy-side firms is 10 June. EMIR rules are expected to take effect by mid-year.
According to Traiana, the CreditLink service will be integrated to and supported by the leading swap execution facilities and designated contract markets.
"We are very pleased that the first FCM has completed production testing, as we all continue to prepare the industry for upcoming deadlines for mandatory clearing," Nick Solinger, CMO at Traiana, said.
The service, designed to increase access to liquidity and reduce limit fragmentation for the buy-side, also allows for real-time post-trade limit checking of block trades and allocations presented for clearing firms.