Cinnober Financial Technology reports the signing of an order with Euronext, the European exchange group, for a trade validation and confirmation solution that will run on its Tradexpress trading platform and be adapted to Euronext’s specific requirements.
The planned service is expected to launch with equity derivatives in the spring of 2015, according to a Cinnober statement, and will enable “bilaterally agreed trades in derivative products with certain flexible parameters to be reported to Euronext and cleared by their central counterparty, LCH.Clearnet.”
The new service is intended to “allow investors to create derivative instruments through either a web interface or a dedicated electronic connection, and to report trades with vital details that go beyond those in the central order book,” Cinnober officials say. “Clients will also enjoy the capital and operational efficiencies of clearing flexible trades in the same clearing pool as their existing Euronext positions.”
With a backdrop of the “G20 post-crisis reform program of increased transparency and reduced systemic risk in derivative markets, we will be positioning our service to deliver clients with the capital efficiency and risk management benefits of central clearing,” Lee Hodgkinson, head of markets and global sales at Euronext, says in the statement. “This initiative will allow us to boost the competitiveness of our existing and recently launched products, and will be the springboard for expansion into new derivative products and asset classes, as it directly provides us with opportunities to develop closer links to a broader section of the trading community.
“What we see now is a new era that requires innovative and customized trade management and post-trade solutions. We look forward to deploying another next-generation solution, this time for an important part of the European derivatives and equities markets,” Veronica Augustsson, CEO of Cinnober, says in the statement.
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