Trayport Limited, a GFI Group company and leading provider of multi-asset-class electronic trading solutions, has taken a major step forward in supporting OTC Cleared markets by announcing it is now offering real-time straight through processing from its GlobalVision Broker Trading System to LCH.Clearnet Ltd's clearing systems for processing transactions.
OTC cleared trading is playing an increasingly important role in the European energy markets and LCH.Clearnet is at the forefront of this market model. However, the current process requires brokers and traders to manually enter trades into LCH.Clearnet's systems. The new connection direct from GlobalVision to LCH.Clearnet's clearing systems automates the OTC Cleared trade workflow. This allows higher volumes of trades to be submitted to LCH.Clearnet in less time while eliminating manual input errors.
"Trayport are proud to be the first OTC broker trading system to offer electronic submission of energy OTC trades to LCH.Clearnet's systems. Improving the OTC Cleared model is crucial for the evolution of the OTC European energy markets and our integration with LCH.Clearnet will ensure the process becomes far more automatic," said Dan Smith, Head of Broker Systems Business at Trayport.
"The London Energy Brokers Association, which includes members such as CantorCO2e, GFI Group, ICAP, Spectron, TFS and Tullett Prebon has expressed their support for this new initiative which has already gone live with carbon emissions trading but will also include other asset classes in spot and futures markets such as freight derivatives," said Isabella Kurek-Smith, director of energy and freight LCH.Clearnet.
Due to Trayport and LCH.Clearnet's market leading position in the European Energy Markets, both companies are in a unique position to ensure the adoption of the LCH.Clearnet API. Almost all OTC trades in UK Power and Gas, European Power and Gas, Coal, Freight and Carbon occur on Trayport's GlobalVision platform. Trayport has more than 12,700 GlobalVision trading screens in use and is the primary hybrid electronic platforms used by all major inter dealer brokers, energy trading companies and several exchanges for these commodities.