By Simon Miller
Cleartrade Exchange has launched an OTC swaps exchange for interdealer brokers, traders and clearing members.
The Monetary Authority of Singapore granted in principle regulatory approval for Cleartrade Exchange to operate a futures market under the Recognised Market Operator regime
Cleartrade Exchange claims that the increased levels of market access, speed of transactions and automation, with the resulting operational efficiencies available to members, will be an industry first for the freight and OTC swaps commodity markets.
Richard Baker, managing director of Cleartrade Exchange, said, “A regulated electronic marketplace is a necessary step for the OTC freight and commodity derivatives market. We are seeing increasing demand for these commodities to be OTC cleared and growing momentum for greater regulatory oversight, a prerequisite for an efficient market.”
He added: “Allowing trades to be processed in a similar manner to that of Exchange Traded Derivatives will close the gap between execution and clearing, while simultaneously creating a central, regulated, marketplace for these commodities.”