UBS Executes First Interest-Rate Swap as Introducing Broker

UBS says the order was communicated to the Neo platform and automatically routed to the TrueEx Swap Execution Facility (SEF), before being executed anonymously in accordance with the central limit order book (CLOB) model. UBS was responsible for the pre-trade credit check as the "standby clearer", while the order was executed and cleared by the Chicago Mercantile Exchange (CME).

"Our goal is to help our clients navigate this rapidly changing market landscape and we believe the introducing broker model is the most efficient and effective way for clients to access the regulated SEF markets," says Paul Hamill, global head of fixed-income agency execution. "This model provides our clients access to liquidity across all the SEFs, without the complex technological, legal and operational requirements associated with direct membership or sponsored-access models. We are very excited to have executed the first client CLOB trade using this model for our client."