Traiana Provides Clearing Connectivity to Eurex Clearing

Eurex Clearing
Eurex Clearing

Eurex Clearing OTC IRD clearing services have been in sharp demand from market participants. The connectivity provided by Traiana aims to address the increased volumes.

Traiana, CME Group’s infrastructure service which provides trade life-cycle and risk management solutions, has deployed direct central clearing connectivity to Eurex thus ensuring the provision of venues, trading parties and clearing members with an end-to-end clearing solution for OTC interest rate swaps.Steve French, Head of Connectivity and Messaging at Traiana, commented:

“This connectivity agreement is well-timed for market participants keen to use our services to consolidate their OTC clearing processes and benefit from an increase in clearing activity at Eurex.

By connecting Traiana’s Clearing Hub with Eurex, market participants can submit trades executed on electronic trading venues for clearing and benefit from Traiana’s Credit Risk Hub (LimitHub). This provides pre-trade checks for client orders placed on regulated trading venues and post-trade checks for voice executed trades; both requirements under MiFID II in Europe and Dodd-Frank in the United States.

Danny Chart, Head of Business Development at Eurex Clearing

Danny Chart, Head of Business Development at Eurex Clearing, said:

“Traiana’s clearing services are an essential part of the OTC clearing process and their efficient management of clearing workflows will allow our members and end clients to streamline processing IRS transactions on both a pre and post-trade basis.”

Traiana will also assist clearing members managing client limits with their post-trade workflows, supporting clients who allocate on a post-trade basis using a standby broker with “Bunched Orders”.

Earlier this year, Traiana provided direct central clearing connectivity to the Hong Kong Exchanges (HKEXs) and Clearing’s OTC Clearing Hong Kong (OTC Clear), allowing market participants to access HKEXs OTC Clear service to clear USD/CNH and USD/HKD FX forwards and swaps.
Traiana has recently made significant enhancements to its Credit Risk Hub in order to allow FX prime brokers to define trade information in more detail to increase credit risk controls and reduce the risks of credit over-allocation. The new features include the ability to define which eligible FX instruments, currency pairs and tenors buy-side managers can trade as part of Tri-Party Agreements, which in turn impacts the level of credit extended to them. CreditLink can monitor the additional trade detail in order to provide greater control to prevent overallocation of risk to clients.
The company has decided to expand its Partnership Program to cover the repo and OTC foreign exchange (OTC FX) segments, which are complementary to the OTC interest rate derivatives segment. As part of its partnership program, Eurex Clearing shares governance and economics with the most active program participants, including  Commerzbank, Deutsche Bank, J.P. Morgan, and Morgan Stanley.