MarketAxess says it has completed the first live trade through its swap execution facility (SEF), using risk checks provided by Traiana's CreditLink hub.
The credit default swap (CDS) index trade, made on behalf of a major buy side, was cleared by JP Morgan. New rules for swaps execution stipulate that clearing members must be able to complete pre-trade credit limit checks prior to execution, with CreditLink providing a centralized venue for all participants in the new trading environment to monitor and manage credit risk in real time across multiple SEFs.
Traiana and Markit have each built a credit hub to serve the newly-structured swaps market. MarketAxess is the first SEF to go live with CreditLink.
“Our clients require efficient and effective pre-trade credit checking processes. In volatile markets, you can’t afford to have your trade cancelled post execution, which is why we will continue working with Traiana, MarketAxess and the broader industry to ensure that each party to an electronic transaction has clearing commitments from their FCMs and the clearinghouses before their trade is executed," says Andres Choussy, global co-head of OTC clearing for JP Morgan.
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