Under what regulatory permission does Trad-X operate?
Trad-X operates under the following regulatory permissions: - SEF for USD products , under CFTC’s regulatory authority - MTF for EUR and GBP products on D2D order book , as well as EUR products on D2C order book, under FCA’s regulatory authority
What currencies are supported?
EUR, USD and GBP
What is Trad-X D2C?
Building on the experience of our D2D (Dealer-to-Dealer) platforms, we decided to create a separate order book, with the aim of facilitating improved access to global liquidity among Dealers and Non-Dealers.
Trad-X D2C (Dealer-to-Client) was developed as an alternative to the RFQ (Request-for-Quote) trading platforms and operates under a CLOB (Central Limit Order Book) protocol which combines size and price discovery - contrary to a RFQ which relies on price discovery only.
The new structure allows Non-Dealers to access fully executable (no last look) prices provided by some of our founding banks with liquidity being further supplemented by the incoming dealers, as well as by the Non-Dealers’ orders.
Departing from the notion that Dealers provide different levels of liquidity to their peers and their clients, we have built our D2C offering around the feature that ensures tightness of the bid/offer spread – namely that Dealers are prevented from trading with each other, whereas Non-Dealers can access the entire pool of liquidity.
This is a pure-electronic order book with no broker interaction.
The qualification criteria for Dealers / Non-Dealers is explained here. If you would like to find out more about Trad-X D2C, please contact us.
All Trad-X order books operate under CLOB (Central Limit Order Book) trading protocol; however whilst our D2D order books support hybrid capacity, Trad-X D2C operates as a pure-electronic platform with no broker interaction.
Trad-X is completely free to set up and access, with participants only paying execution fees.The latest fee schedule is available here.
Clearing & Credit
Trad-X operates in a mandatory-cleared environment; we support the following clearing options on the current, live order books: - LCH for EUR, USD and GBP on D2D platforms - Eurex for EUR on D2C platform
Trad-X operates in a mandatory-cleared environment; participants and clearing brokers can utilise our proprietary credit clearing matrix.
We are also connected and are fully operational with Traiana.
In order to provide participants with the highest level of flexibility in any Brexit scenario, Trad-X has been granted a conditional permission by the French authorities (AMF and ACPR) to operate a MTF under our Paris TSAF OTC S.A. entity (“EU MTF”). The scope of the permission would allow us to facilitate trading of EUR and GBP Interest Rate Swaps and the associated packages.
Additionally, we have the functionality to host EUR and GBP instruments on our SEF platform; this could prove to be a viable option for a certain type of entities in the scenario whereby there is no equivalence between UK and EU regulatory regimes.
For any Brexit related enquiries please contact us.