Cleartrade Exchange

Challenges

Cleartrade exchange wanted to enable matched trades sent directly to different clearing houses without manual handling.

They also wanted real straight through processing by automatically cleared trades after matching as opposed to having to wait for GCM approval.

They realized that for the brokered commodities markets to become electronic the brokers needed to play the most central role in the system giving them a tool that would make their lives a lot easier without revealing their business knowledge to competitors.

They needed a possibility to easily trade different asset classes on the same screen.

Solution

By using the EDGE integration software the Exchange can integrate with a multiple of clearing houses. They accomplished real straight through processing by using the EDGE credit filter enabling GCM auto-approval of trades with predefined margin levels. They used the built-in Chinese wall, multi-broker functionality in the system to prevent brokerage firms to see other brokers’ prices

Why it worked

• The EDGE API is FIX 4.4 compliant and our team has extensive knowledge in systems integrations which enabled fast integration with clearing houses and recap systems
• The EDGE platform’s configurable design enables credit checks anywhere in the chain of a transaction, easily switching it on post execution, pre-clearing. Credit checks could be set up through configuration on a per account basis
• Edge offers selective quote broadcast enabling for orders to be routed to a predefined list of recipients letting the brokers decide who should get first look at their prices
• Edge handles multiple assets in the same system using configuration options on a per market basis

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About Cleartrade

Cleartrade Exchange is an order management and processing platform developed for the freight and commodity derivatives markets. Cleartrade Exchange provides value-added services to market participants including traders, brokers, banks and clearing houses. It provides order management, reconciliation and straight-through-processing to clearing houses. Cleartrade is incorporated in Singapore and will operate as a Recognised Market Operator (RMO).

Cleartrade Exchange is the Exchange for OTC cleared commodity derivatives.

www.thecleartrade.com

 

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