The Tradetech Daily

State Street

State Street

Contact
Tomas Zikas. CEO, SwapEX LLCEmail: tzikas@swapex.com sales@swapex.comTel: +1 212 340-5203

State Street’s SwapEx swap execution facility supports multiple execution styles to trade interest rate swaps and non-deliverable forward FX instruments. It is built on core technology supporting other successful State Street platforms, such as Currenex, FX Connect and GovEx.

Instruments

Instrument types include :

FX non-deliverable forwards

Interest rate swaps, including any combination of
effective date, cash flow alignment/maturity date and coupon.

Relative value instruments, such as curve trades
and swap spreads.

Trading protocols:

Order book

Request for quote

Indication of interest

Basket unwinds

State Street has not submitted a made available to trade submission.

Access

All market participants must be eligible contract
participants and for direct access, a market participant must sign on as a
participant, or be authorised for direct access by being designated as an
authorised trader by another valid participant.

Participants and authorised traders may also provide
indirect access for their customers by accessing the pool on behalf of such
customers.

For permitted transactions subject to mandatory clearing
or required transactions, participants must designate a clearing firm to clear
trading activity.

Liquidity

So far, SwapEx has 15 signed dealers and 24 signed
customers. Any participant can act as a liquidity maker or a liquidity taker,
based on their operational preference.

Post-trade

SwapEx connects to downstream systems including all
leading derivative clearing organisations and the Depository Trust and Clearing
Corporation for reporting.

Future plans

The platform will concentrate on allocation support and is evaluating market making programs to incentivise participation on the SEF.