New OTC Swaps Exchange Launched - Cleartrade Exchange Launches As Recognised Market Operator (RMO) For Execution Of OTC Commodity Swaps

Cleartrade Exchange Pte Ltd today announced the launch of the new OTC swaps exchange for interdealer brokers, traders and clearing members. The Monetary Authority of Singapore (MAS), primary regulator of the Cleartrade Exchange, has granted in principle regulatory approval for Cleartrade Exchange to operate a futures market under the Recognised Market Operator regime.

Cleartrade Exchange will address the increasing need for a truly electronic global marketplace for OTC freight and commodity derivatives, with access internationally to its trade execution facilities via its proprietary platform to provide real-time processing.

Cleartrade Exchange is open to membership from interdealer brokers, principal and investment traders and general clearing members. Immediate benefits for members will include electronic order input, price and volume discovery, pre- and post-trade order management and processing of trades with straight-through processing (STP) to nominated clearing houses. The increased levels of market access, speed of transactions and automation, with the resulting operational efficiencies available to members, will be an industry first for the freight and OTC swaps commodity markets.

Richard Baker, Managing Director of Cleartrade Exchange, said, “We are delighted that Cleartrade Exchange has received this approval to operate globally as an RMO. A regulated electronic marketplace is a necessary step for the OTC freight and commodity derivatives market. We are seeing increasing demand for these commodities to be OTC cleared and growing momentum for greater regulatory oversight, a prerequisite for an efficient market. Allowing trades to be processed in a similar manner to that of Exchange Traded Derivatives will close the gap between execution and clearing, while simultaneously creating a central, regulated, marketplace for these commodities.”