Tradition has facilitated the first brokered AUD/USD cross-currency swap trade using LCH SwapAgent, a service designed to simplify the processing, margining and settlement of non-cleared derivatives.
The AUD/USD trade was executed between Mitsubishi UFJ Financial Group (MUFG) and another counterparty on November 20.
Nathan Ondyak, global head of LCH SwapAgent, comments: “Since launching in 2017, customers trading non-cleared derivatives have utilised SwapAgent to gain many of the efficiencies that they have become accustomed to in the cleared market. We are delighted to welcome MUFG as one of our newest members to the service. The completion of the first brokered AUD/USD trade between bilateral counterparties using SwapAgent is an important milestone for participants trading cross-currency swaps.”
Amit Kantaria, director in the rates trading group at MUFG, EMEA, adds: “MUFG is pleased to have been able to participate in the first brokered AUD/USD cross currency swap through SwapAgent. We believe that this is the first step towards an exciting future, and look forward to this evolution of the uncleared derivatives market.”
Mike Hayter, manager of the cross-currencies broking desk at Tradition, says: “Tradition is delighted to facilitate the first, brokered bilateral AUD/USD swap trade using LCH SwapAgent. This is a crucial service that improves standardisation, introduces efficiency and reduces operational and credit risk counterparties in the non-cleared derivatives market.”