TeraExchange, a new marketplace for swaps and other OTC cleared derivatives scheduled to launch in Q1, appointed Marti Tirinnanzi as VP of business development and head of the firm’s Washington, D.C. office.
TeraExchange is looking to Tirinnanzi’s regulatory background and expertise in derivatives to serve the needs of large government sponsored entities (GSEs), such as Fannie Mae and Freddie Mac, that will need to move their OTC positions over to a central clearing house model when new regulations take effect.
As former regulator, Tirinnanzi has in-depth understanding of the needs of GSEs— particularly Fannie Mae and Freddie Mac and including the Federal Home Loan Banks and Farm Credit Banks— along with other market participants such as municipalities and corporations, according to the release. These entities will need to move to an electronically executable centrally cleared environment in line with upcoming regulatory mandates.
Tirinnanzi most recently served as chairman of the Clearinghouse Working Group of the Federal Housing Finance Agency (FHFA), where she oversaw a project to move Fannie Mae’s and Freddie Mac’s $2 trillion in OTC interest rate swaps to clearing.
“As a regulator, we helped create solutions addressing middle and back-office processes as well as FCMs and clearing firms but the one key element missing has been an electronic execution platform for OTC swaps and derivatives. TeraExchange’s technology effectively meets that need, and I am excited to have a role implementing this critical component of the new central clearing model,” stated Tirinnanzi in today's release.
Commenting in the same release, Christian Martin, CEO of TerraExchange, said that Tirinnanzi’s understanding of derivatives and regulatory experience “is directly related to our mission of providing full pricing transparency to these markets.”
TeraExchange will offer a fully transparent central limit order book (CLOB), cross-asset trading an analytics platform and voice broker/block execution service.
TeraExchange is a service of Spring Trading, with offices in Summit, N.J. and Washington, D.C., which has filed notice with the CFTC of its intent to operate as an Exempt Board of Trade (EBOT). It also intends to apply to become a swaps execution facility for swaps and other OTC cleared derivatives once CFTC and SEC rules are finalized in 2012.