Tullett Liberty and the Chicago Mercantile Exchange Launch TLFast Electronic Matching Tool for Derivatives Dealers
Yesterday, Tullett Liberty and The Chicago Mercantile Exchange (CME) launched a joint venture, TLFast, an electronic-trade matching tool. The venture will enable fixed-income derivatives dealers to manage their positions and counterparty exposures more efficiently via executions of daily futures rate agreements (FRAs) contracts listed by the CME.
So far, the rollout of TLFast which involves trading daily three-month Eurodollar futures, has attracted more than 40 market participants in North America and Europe.
Both parties say the matching technology mitigates forward interest-rate gap exposures for dealers, while providing the benefits of cross margining, straight-through processing and order aggregation in a centralized marketplace that is supported by CME's Clearing House, which they say is the world's largest futures clearing organization. The result will create substantial matching and capital efficiencies for participants in the fixed-income over-the-counter derivative markets. The first matching session will take place at 3:00 p.m. Central Standard Time.