OTC Global Holdings LP (OTCGH), the leading independent over-the-counter (OTC) interdealer broker, announced today the formation of a new subsidiary, EOX Holdings LLC (EOX).
EOX owns and operates EOXLive, a premier web-based platform that merges traditional voice broking with an interactive electronic trading environment to facilitate price discovery and provide unmatched trade execution services.
As a broker-assisted platform, EOXLive provides clients with unparalleled liquidity and access to the energy and emissions markets currently brokered by OTCGH's portfolio companies. EOX plans to extend the platform into additional OTCGH brokered markets in the future including grains and soft agriculturals. Collectively, OTCGH is one of the largest liquidity providers to CME ClearPort and a significant contributor to ICE Clear.
"OTCGH brokers and clients can tap EOXLive's extensive capabilities to leverage the relationships and liquidity of the more than 125 commodities brokers who interact with the platform and execute transactions in a variety of commodity contracts daily," said Javier Loya, chairman and chief executive officer of OTCGH. "EOXLive aggregates and posts client orders to a wider electronic distribution network of affiliated OTCGH brokers and clients to deliver unrivaled market visibility to potential counterparties."
"OTC Global Holdings has a history of bringing new products and concepts to the market and EOXLive is another example of their innovation," said Joe Raia, managing director of energy and metals products at CME Group, the world's largest and most diverse derivatives exchange. "The functionality of interactive trading and brokering platforms should continue to attract liquidity to the fast-growing OTC commodity markets by creating greater post-trade efficiency for brokers and counterparties, which includes the safety and credit guarantees of central counterparty clearing."
The EOXLive trading facility has a number of significant advantages, including:
- Access to real-time processing for traders in both voice and electronic formats
- High integration with voice broker workflows
- Anonymity and privacy that is maintained through the trade lifecycle at the trader's option
- Continuous two-sided quotes throughout the trading day
- Rapid, efficient and seamless trading and straight through clearing and confirmation
- Standardized trading language based on the preferences of brokers, traders and market makers
- A Java-based program delivered via the Internet enabling efficient trading from any location
- The ability to write directly to the EOXLive application program interface for market makers and algorithmic traders
With EOXLive, users have the ability to trade bilaterally and then clear through CME ClearPort or ICE Clear. The platform also enables brokers, traders and market makers alike to harness data with its clear and concise view of each inquiry and trade, providing a deep perspective on the instruments and strategies at their disposal.