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 was granted temporary registration as a Swap Execution Facility (SEF) on September 13, 2013. As a SEF, SwapEx enables 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 significant 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 need to identify their counterparties to pursue a fully-disclosed, attributed trading experience. This workflow is referred to as Traditional RFQ. For traders looking to combine the fully disclosed, relationship based aspects of RFQ with the effectiveness of continuous pricing, SwapEx offers a Reverse RFQ workflow. This workflow allows liquidity makers to direct liquidity on a standard set of instruments to the liquidity takers of their choosing.
- 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.
- 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.