Trad-X Upbeat Can Top EUR112 Billion In Swaps Volume Seen Since Launch
July 19 2011 - 12:12PM
Dow Jones News
Compagnie Financiere Tradition (CFT.EB) Tuesday voiced
confidence in its fledgling derivatives trading platform Trad-X,
saying it wants to exceed the EUR112 billion in euro interest rate
swaps it has traded since the platform's launch two months ago.
The London-based venue for trading over-the-counter derivatives
electronically is one of the first competitors to ICAP PLC's
(IAPLY) iSwap platform, which was relaunched with dealer backing
last September.
Trad-X said its EUR112 billion represents a "significant
milestone" in attracting liquidity and, in turn, winning market
share.
"It proves to me that if we can succeed at the start of this
venture in a non-risk appetite-type market, it gives me confidnce
for the future of our venture," Tradition's Daniel Marcus told Dow
Jones Newswires.
Marcus is head of strategy and business development for
Tradition, the interdealer broking arm of Swiss-based Compagnie
Financiere Tradition.
Trad-X's strong growth in its first two months already poses a
considerable threat to ICAP, a London-based exchanges analyst said.
Trad-X competes with brokers such as ICAP, BGC Partners, GFI Group
and Tullett Prebon (TLPR.LN), connecting buyers and sellers of
swaps, bonds and currencies.
Second-quarter earnings from Europe's largest investment banks
such as Deutsche Bank AG (DB) next week are expected to show that
trading in euro swaps has been light as the euro zone grapples with
its debt problems and investors clamp down on risk.
Last week, ICAP reported a volume of EUR510 billion in the
trading of euro interest rate swaps since September.
Regulators are set to shine a spotlight on trading in
over-the-counter securities following the financial crisis, with
U.S. and European overseers drafting rules to force more trading
onto platforms. Besides ICAP and Tradition, GFI Group (GFIG) is
among the interdealer brokers jockeying for position with trading
platforms before the new rules come into effect.
-By Katharina Bart, Dow Jones Newswires; +41 43 443 8043;
katharina.bart@dowjones.com
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