UBS to route client IRS trades through toTrueEX

Single-Dealer Platforms continue building SEF aggregation and client routing capabilities for mandated products.

UBS are in discussions to route client IRS orders through to new SEF compliant IRS platform TrueEX.

UBS will use their Price Improvement Network (PIN) to route client orders through to TrueEX, which registered with the CFTC as a Designated Contract Market (DCM). Initially TrueEX will offer electronic execution of interest rate swaps via proprietary trading technology, and it will later expand its offerings to include additional liquid derivatives.

It’s worth remembering, banks are not be mandated to connect to ‘all SEFs’, and that the 20% ownership limits prohibit and meaningful bank stake being acquired. Therefore, it will critical for these new venues to secure key liquidity providers, such as UBS.

For those interested, here is the TrueEX RuleBook. Interactive Data (IDC) 7-ticks platform will provide hosting and low latency routing, more here.

TrueEX has a seasoned management team, and will be interesting to see how they develop.

Bloomberg running with story here


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