Interdealer broker Tradition has expanded Trad-X, its global hybrid trading platform for over-the-counter (OTC) derivatives and interest rate swaps, to allow trading in USD interest rate swap product in the US.
Trad-X, the derivative technology solution launched by Tradition about 18 months ago and supported by 11 of the largest banks in the world, has already established itself as the leading hybrid liquidity source for euro interest rate swaps.
According to Tradition's global head of strategy Daniel Marcus (pictured), the platform intends to build on this success in the euro interest rate swaps arena by expanding its services into another key trading currency.
Christian Mundigo, global head of rates trading and co-head of Americas fixed income at BNP Paribas said that the platform will provide the USD swap market with an efficient electronic execution venue for trading interest rate swaps. "We are pleased to support the expansion of this market-leading platform across both the euro and US dollar markets, where we are committed to be strongly engaged with both the dealer community and our clients," he said.
Ciaran O'Flynn , global head of rates eTrading at Morgan Stanley, another of the platform's streaming partners, said that the venues will increase the transparency of the swaps market and facilitate the move towards mandatory clearing.
Jeff Michaels, head of rates and principal strategies Americas at Nomura, said Trad-X is designed to bring transparency and hybrid liquidity to the USD interest rate swap market.
"We believe will assist with the market evolution towards regulatory-complaint flexible trading solutions," he said.
Trad-X reported a substantial increase in volumes at the end of last year as a result of increased activity during the summer.
Since its launch, the platform has matched over 7,000 orders amounting to a notional of approximately €500bn.