Interactive Data will offer hosted services to trueEX, a US designated contract market for interest rate swaps, through its 7ticks platform, as preparations for the impending OTC derivatives legislation accelerates.
The firm provides market data and other hosted services, will provide trueEX with monitoring and support for its matching engine and network architecture, as well as connectivity to other futures exchanges such as the IntercontinentalExchange and CME Group for post-trade solutions.
“By outsourcing the technology requirements for their matching engine to use, trueEX can take away the challenges associated with the trading infrastructure so that it can focus on other core business aspects, such as being Dodd-Frank compliant,” Rob Lane, trading solutions business manager, Interactive Data, told theTRADEnews.com.
Moreover, users of the 7ticks connectivity network, which include hedge funds, software vendors, banks, prop trading firms and exchanges, will also be able to send orders to trueEX.
“With interest rate swaps previously traded mainly by phone and lacking regulatory oversight, trueEX enables the global trading community to automate their activities related to interest rate swaps trading,” said Emmanuel Doe, president, Trading Solutions Group for Interactive Data. “We provide trueEX and its market participants with managed services designed to address key issues related to the new swaps trading environment, helping to facilitate market participants with liquidity, fast execution and clearing while remaining compliant from a regulatory perspective.”
TrueEX will be launched during this quarter in response to the Dodd-Frank Act, part of which requires standardised OTC derivatives to be traded on exchange-like platforms and cleared through central counterparties. Clearing of interest rate and credit derivative contracts is due to start on 11 March for some market participants.
“Our clients and market makers look to us to help them meet their regulatory reporting, execution, and clearing requirements through our electronic platforms, as well as provide them with a state-of-the-art facility with all the benefits of security, reliability and redundancy that 7ticks provides,” said trueEX CEO Sunil Hirani.