Who We Are
State Street’s SwapEx is a versatile and highly functional electronic trading platform serving the needs of derivative traders. SwapEx leverages the experience and accumulated, mature, award-winning technology suite developed for and used throughout State Street’s other supported businesses including Currenex, FX Connect and GovEx. SwapEx intends to register as a Swap Execution Facility (SEF) pursuant to a successful registration with the Commodity Futures Trading Commission. As a SEF, SwapEx will enable traders to execute interest rate swap and foreign exchange derivative transactions.
Since we understand that the derivatives market is not a “one size fits all” trading environment, SwapEx provides a broad toolkit of execution styles providing traders the greatest amount of flexibility in how they effectively access liquidity, make their own liquidity available to others and trade. These styles include:
- Central limit order book. Anonymous, all-to-all, continuous trading for the most popular, liquid derivative instruments. This functionality is a central requirement of the CFTC’s mandated regulation (“minimum functionality”) and SwapEx provides superior, advanced tools to provide efficient access to liquidity in these instruments.
- Request for Quote (RFQ). For trading needs in specific derivative instruments where streaming liquidity is not readily available, SwapEx provides a trader with the ability to raise a custom request and deliver it to intended liquidity providers. These liquidity providers can then provide a static quote or stream of prices back to the requestor for execution. Requestors can identify their counterparties to pursue a fully-disclosed, attributed trading experience, or send their requests to a broader pool of liquidity providers.
- Indication of Interest (IoI). Traders can raise an anonymous indication of interest to all subscribers of SwapEx, which will trigger the creation of a spontaneous central limit order book for that instrument for the duration of the trading day. All participants can then add liquidity or take liquidity for the specified instrument.
- Session-based, midpoint matching Service. Scheduled sessions allow traders to access liquidity at a pre-disclosed midpoint to rebalance duration or clean up books & records.
- Unwind transactions. To solve the dilemma or an ever-expanding number of line items on a trader’s books and records, SwapEx provides unique facilities in a compliant manner to access liquidity for “tear-up” transactions, either as single line items or as a basket of trades. Unwinds combine the capabilities of IoIs and RFQs.