Today, trueEX, the first electronic exchange for interest rate swaps, said that Credit Suisse completed the on-boarding necessary to enable the firm and its clients to access the trueEX Designated Contract Market (DCM) and related services.
The move establishes Credit Suisse as the first clearing firm to onboard with trueEX for interest-rate swaps. This allows Credit Suisse clients to access trueEX’s central limit order book on liquid IRS, as well as the standard coupon standard maturity (SCSM) swaps that are International Swap Dealers Association (ISDA) MAC (market agreed coupon) compliant.
“Credit Suisse is one of the leading global OTC Clearing firms. Working closely with Credit Suisse has enabled us to further refine our IRS offering to provide much needed solutions to historic market shortcomings,” said Sunil Hirani CEO of trueEX.
Trades executed on trueEX’s platform can be cleared at either CME or LCH through direct connectivity to both clearinghouses.
Once positions are in the clearinghouse, buy side clients of Credit Suisse will be able to access the trueEX’s related services for automated terminations, compaction, back loading, portfolio rebalancing and allocation of interest rate swaps in a cleared and regulated environment.
In April, trueEX said it planned to provide a service to manage various lifecycle processes known as PTC — for portfolio terminations and compaction. This will enable firms to actively manage their cleared portfolios and reduce the number of line items and manage their aggregated risk across cleared and bilateral positions. TrueEX's PTC platform will be offered through the trueEX Swap Execution Facility (SEF) for the automated termination, compaction and backloading.
“We deliver participants on our platform clearing certainty, and we enable clients to terminate open IRS positions via cleared, transparent and regulated environment,” said Hirani, adding that the firm is working closely with market participants to onboard with trueEX to help them achieve compliance with the new regulatory requirements. truEX filed its SEF application on July 15, and is currently in pending temporary registration status.
In addition to Credit Suisse, five additional OTC clearing firms are in the process of completing documentation, testing and certification in order to go live and provide their clients with access to the automated interest rate swaps exchange.