Tradition, one of the world's largest interdealer brokers in over-the-counter commodity and financial products, today announced that Bloomberg will supply daily fixings observations to its recently-launched volatility futures platform, Volatis.
Volatis officially launched in June with a hybrid platform designed to facilitate the negotiation, and subsequent trading of realised volatility futures.
Bloomberg produces fixings as part of its market-leading independent valuation services for derivatives and structured notes. Under the agreement with Tradition, Bloomberg will provide daily commodity and foreign exchange fixings observations to the Volatis platform, offering enhanced transparency by providing market participants with an accurate reflection of realised volatility.
The underlying fixes will be provided for spot FX, EURUSD, AUDUSD, USDGBP, USDJPY, spot Gold and Silver and front month futures for Brent crude, WTI crude and US Nat Gas.
Rupert Hodges, CEO of Tradition FX, Energy and Equities said: "The incorporation of Bloomberg's fixings on the Volatis platform is an important step in creating an offer for clients that is transparent and truly representative of the market. This relationship, combined with CME Clearing, will allow participants to access greater trading opportunities whilst also reducing counterparty risk. We see this as a further demonstration of Tradition's focus on developing products with the market, for the market."
Products negotiated on Volatis will be cleared by CME Clearing. In the initial phase, Volatis will offer indications in block trades of cash settled futures contracts offered by CME Group exchanges on NYMEX WTI crude, NYMEX Brent crude, NYMEX natural gas, COMEX gold, COMEX silver, and CME currencies EUR/USD, AUD/USD, GBP/USD, USD/JPY.