The Nasdaq OMX Group, Inc. (NDAQ) and trueEX Group LLC, a Commodity Futures Trading Commission (CFTC)-regulated exchange for interest rate swaps, have announced a five-year partnership during which Nasdaq OMX will provide the Smarts Integrity market surveillance platform to trueEX.
The solution is now live and monitors both trueEX's Designated Contract Market (DCM) and its Swap Execution Facility (SEF).
"We're pleased to partner with a market-leader such as trueEX, as we look to assist exchanges to become safer and more transparent for market players across the globe. Our platform is a natural choice for trading platforms and regulators looking to safely optimize trading activity," said Rob Lang, Vice President and Global Head of SMARTS, NASDAQ OMX.
The SMARTS Integrity technology provides trueEX with analytical capabilities that will monitor trading for potential market manipulations as well as provide analytical capabilities and reporting through the SMARTS new SQL interface. As implementation of Dodd-Frank places obligations on SEFs to have a surveillance program in place, SMARTS Integrity will enable trueEX to bring the program in-house and realize cost savings against a fully-outsourced approach.
"We are excited to deploy the NASDAQ SMARTS product at trueEX, as it will revolutionize the way we conduct surveillance, reporting and data analysis," said Karen O'Connor, Chief Operating Officer, trueEX. "This announcement builds on an existing, strong relationship with NASDAQ and is a great complement to an already strong service offering."
trueEX offers market participants the dual benefit of automated execution and clearing in an electronic, CFTC-regulated, DCM exchange in addition to their SEF platform. To date, trueEX has processed more than $1.5 trillion notional in allocations, terminations, offsets, and blended compressions.
SMARTS surveillance solutions operate in more than 50 trading venues and regulators, and more than 90 market participants across 65 markets. SMARTS Integrity will serve as a vital market supervision and control tool.