The interdealer broker is also working with partners of GreenKey, a vendor specializing in digitizing voice communication while TriOptima also has FinTech news.
Interdealer broker Tullett Prebon is acquiring from CME “a long term license of a hybrid trading technology” that it will further develop internally “to provide bespoke, proprietary, customer-facing capabilities,” officials say.
Tullett Prebon has been busy lately, having purchased the hybrid, U.S. voice-broking business operations of Creditex from the Intercontinental Exchange (ICE), and before that agreeing to acquire similar businesses from soon-to-be-former brokerage competitor ICAP.
For the CME purchase, Tullett Prebon already use the technology “and now plans offering its clients a choice of trading methodologies including RFQ, CLOB and volume matching,” say CME and brokerage officials in a statement. “The versatile technology will be used across major asset classes and will form the cornerstone of Tullett Prebon’s new hybrid initiatives, further enhancing its voice and electronic franchise. It also represents an important step in facilitating the provision of MIFIDII solutions for the industry.”
The purchase will give the broker “greater control and flexibility of our key customer facing technologies, enabling us to deliver innovative and cost effective systems,” says David Perkins, managing director, electronic broking at Tullett Prebon.
In addition, Tullett Prebon and fellow interdealer broker Tradition have launched a Design Partner Program (DPP) for the testing and/or deployment of speech recognition and voice-user interface (VUI) technology from vendor GreenKey, maker of a digital telephony platform for global financial market participants.
The VUI helps users interact with their computers “far more easily and much faster, for example to populate trade tickets and pricing whiteboards,” say GreenKey officials.
Led by Tradition and Tullett Prebon, the DPP involved banks, trading firms and exchanges. “In addition to the DPP participants, seven of the world’s top-10 investment banks and several leading global exchanges are testing or deploying GreenKey technology within their respective organizations,” GreenKey officials add. The DPP participants will work with GreenKey to develop “common standards for workflows and use cases for the voice-driven technology.”
The DPP participants will also help identify more key features that they would like built into GreenKey offerings, “including in the areas of telecommunications, voice collaboration, instant messaging capture and speech recognition for voice-driven workflows,” say GreenKey officials.
By digitizing voice, GreenKey can help its clients “meet a host of U.S. and European regulatory requirements, including pre- and post-trade transparency for voice quotes and trades, satisfaction of best execution for voice, tagging of calls for market soundings, real-time surveillance reports and completeness and retention requirements,” GreenKey officials add.
“Hybrid voice is at the heart of our business,” Perkins says. “The ability to transcribe voice communications into secure, recorded usable data in real time is highly beneficial.”
“GreenKey’s cutting-edge technology that incorporates flexible, open, integrated instant message aggregation, recording and voice transcription will play a key role in enabling Tradition to satisfy our strategy on a global basis,” says Daniel Marcus, global head of strategy and business development at Tradition, in a statement.
Previously, FTF News reported that Tullett Prebon was buying the Creditex business and traders from ICE, which will retain the electronically traded markets and systems, post-trade connectivity platforms and intellectual property of Creditex.
The deal, which authorities have to approve, says that Tullett Prebon will become the new employer of 14 brokers, located in New York. They will work with clients via hybrid voice-broking and trading services for credit derivatives, say Tullett-Prebon officials.
In addition, the brokers will use Tullett-Prebon’s platform, tpCREDITDEAL, intended to complement their expertise and enhance “their ability to secure optimal outcomes for customers,” officials at the interdealer broker say.
The pending Creditex acquisition will enhance Tullett Prebon’s “pool of broking expertise,” before the addition of the ICAP hybrid voice broking services and information business later this year, Tullett Prebon officials say.
triReduce Used for Compression Cycle of Cleared Mexican Peso Swaps
TriOptima, a provider of over-the-counter (OTC) derivatives post-trade risk management services and infrastructure, reports that 11 CME Group IRS (interest rate swaps) clearing members eliminated 12.5 trillion MXN ($664 billion) notional outstanding in the first triReduce multilateral compression cycle for cleared Mexican Peso (MXN) interest rate swaps (IRS).
More than 35 percent of the cleared MXN notional principal outstanding in CME was eliminated in this cycle, “the first ever compression in a cleared Latin American currency,” TriOptima officials say.
“TriOptima has offered compression for uncleared MXN trades since 2007, and has completed 20 MXN cycles,” according to a TriOptima statement. TriOptima has also run six triReduce compression cycles in uncleared Brazilian Real (BRL) and Colombian Peso (CLP), officials add.
“With bilateral swaps facing higher capital costs and the implementation of uncleared margin rules starting September 1, the combination of voluntary clearing and multilateral compression provides significant value to our clients,” says Sunil Cutinho, president of CME Clearing.
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