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A-Team Insight Blogs

Cleartrade Exchange Helps Clients Meet Dodd Frank Regulations with Trade Repository

Cleartrade Exchange, the global electronic marketplace for freight and commodity derivatives, announced today that its Trade Repository, an integral part of its trading platform, has now been released to clients. Unlike most “old tech” solutions which are intra-day at best, the Cleartrade real-time Trade Repository automates the production of trade confirmations, in the form of electronic recaps and archives trade history for all asset classes and all types of trading parties. It is an integral part of the Cleartrade Platform Cloud Service, which is accessible via a secure url. Trade repositories are becoming a core requirement in the equity, commodity and derivatives markets under Dodd Frank regulations and Cleartrade Exchange will continue to monitor developing specifications and standards and offer compliance and access to regulators where required.

Irrespective of how an order is traded on the Cleartrade Exchange execution venue, the Trade Repository will produce the relevant counterparty trade and recap statements. Trade activity is available via the Cleartrade Exchange Trade Repository portal; another option is to have the trade recaps automatically emailed to the trading parties, their GCMs and brokers.

The portal allows participants to log in and, using the powerful search function, quickly locate any trade executed over the previous seven years, and to download recap statements on demand.   Zhirui Ang, operations director of Cleartrade Exchange, said, “Our customers stress the importance of retaining recap statements in conjunction with electronic trade tapes.”

He continued, “Our Trade Repository, now live, is available on admission of members to the venue for trading FFAs, Iron Ore and Fertilizer swaps contracts. During July we have seen every combination of trade scenario take place – principal to principal, broker to principal and broker only, across the three asset classes and three clearing houses. The Trade Repository produces real-time recaps for all trades and provides a central destination for principals to track their entire trading activity.”

Cleartrade Exchange partnered with Trigonal, a London-based software and development company which specialises in trade management and processing solutions, to develop the Trade Repository over the past 12 months. It is one of the first fully-hosted, trade hub solutions in the OTC clearing market.

Marius Andresen, director of Trigonal, commented, “We’ve been very pleased to work so closely with Cleartrade Exchange and bring the Trade Repository to market. Trade management processing is a critical component in the developing OTC clearing market and, for the first time, principal counterparties, brokers and GCMs will simultaneously receive real-time trade confirmations and recaps from a central service. The ability to investigate trade history for compliance and reporting purposes is becoming increasingly critical so this is about trade transparency and risk mitigation for all parties.”

A unique feature of the trade repository solution is its ability to interface to brokers’ existing Trade Manager back office systems provided by Trigonal. This enables broker trades executed via the Cleartrade Exchange to automatically populate the relevant broker in-house trade manager with all the relevant trade data, thus maintaining use of existing systems and retaining commission and invoicing process flows. Cleartrade Exchange has recently upgraded its own open API to FIX5.0; this API also provides open access to in-house back office and 3rd party systems.

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