Deutsche Bank Extends Order Functionality
Deutsche Bank has extended the FX order functionality on Autobahn with the launch of an order management platform for FX swaps.
FX Swap Orders allows clients to place orders in multiple currencies, trade within a given bid/ask spread and provides access to better liquidity.
The service also provides a Fast Orders window for standard tenors, a detailed orders window for broken dates and forward forwards, the ability for clients to place orders discreetly, and an option to adjust forward points automatically with the spot rate.
Clients can also connect to Deutsche Bank’s axes, access notionals in base or terms currency and trade even amounts of NPV amounts to eliminate spot risk. All orders time out at the end of the New York day unless specified otherwise by a client.
Adam Vos, global head of FX forwards at Deutsche Bank, says, “The platform is aimed at all types of users as execution and price competitiveness is important for all clients. This platform has already been rolled out and the main users have been regional banks. The feedback has been very positive as the ability to transact within the bid/ask spread brings value to clients. Until now, the ability to transact this way was only available via voice.”
The currency pairs supported on the platform are:
EUR/USD, GBP/USD, USD/CAD, USD/CHF,
USD/JPY, NZD/USD, AUD/USD, USD/NOK,
USDSEK, USD/DKK, EUR/GBP, EUR/CAD,
EUR/CHF, EUR/JPY, EUR/N/ZD, EUR/AUD,
EUR/NOK, EUR/SEK, EUR/DKK and AUD/NZD.
Vos adds, “We are already working on extending the currency base and will work with our clients to determine which currency pairs are most in demand.”
Vos says FX Swap Orders is a natural evolution of the platform. “We rely on our clients to set the direction of our platform development, and enhancements to execution are always at the top of their list. We believe the electronic world will move in this direction and we’re happy to be the first platform to provide this service,” he says.
MarkitSERV Launches Interdealer Trade Date CDS Clearing Service
MarkitSERV, the 50-50 joint venture between the Depository Trust & Clearing Corp. and Markit, has launched trade-date clearing for interdealer credit default swap trades through its trade matching and routing service.
Deutsche Bank, JP Morgan and Morgan Stanley were the first banks to use the new platform to match and route credit trades for clearing in close to real-time. The trades were cleared by ICE Clear Credit.
The vast majority of cleared CDS trades are currently cleared in batches on a five-day cycle. With the new trade processing platform, MarkitSERV allows each trade to be individually routed to the clearinghouse and cleared immediately following execution. Proposed regulation in the US and Europe is likely to mandate clearing of eligible OTC derivatives on a timely basis.
Using the new service, counterparties approve and route each trade for clearing immediately after execution. Trade details submitted electronically by counterparties to MarkitSERV are verified, matched and transmitted directly to the clearinghouse. After the trade is successfully cleared, parties are notified via the MarkitSERV service.
MarkitSERV also supports real-time submission of trades by interdealer brokers and electronic trading platforms. More than 100 execution venues submit trades through MarkitSERV in credit, interest rate and equity derivative markets.
Stuart McClymont, managing director, head of market initiatives and business architecture at Deutsche Bank, says: “This is a significant milestone for the OTC derivatives industry. Delivering infrastructure that can support both cleared and non-cleared transactions on a single platform maximises the control and efficiency around OTC derivative processing.”