Today Euronext announced the launch of its new flexible service AtomX, powered by Cinnober’s award-winning TRADExpress technology.
The new solution will complement Euronext’s existing offering and capture tailored derivatives business that would otherwise have been conducted OTC. The service addresses regulatory changes calling for increased transparency and reduced systematic risk, which will make exchanges even more attractive to derivatives business.
AtomX is a flexible service that offers the efficiency and security of the regulated market and central clearing to bilaterally negotiated trades. Through AtomX investors are now able to customize and trade derivatives that will be cleared, via LCH Clearnet, in the same clearing pool as the other Euronext derivatives positions. Investors can choose their own product style, type, strike price and expiration dates outside the standard expiry time set.
“Clients are under significant pressure to find capital efficient solutions whilst maintaining much of the flexibility that OTC contracts provide in allowing them to meet their trading objectives,” says Adam Rose, Head of Financial Derivatives at Euronext. “Through this service we can immediately offer efficiencies to clients trading bespoke equity derivatives contracts on our products. In addition we are also in discussions over new products that we can add to the service to bring more benefits to the marketplace.”
“Providing Euronext with a new post-trade solution was the capstone in a very smooth and successful project,” says Veronica Augustsson, CEO of Cinnober. “We have a great partnership with Euronext and look forward to continued teamwork on future development. As our technology was just awarded the Financial News ‘Post-Trade Initiative of the Year’ last week, this indicates that major financial players are increasingly recognizing the importance of transparent and secure marketplaces.”
The multi-asset technology from Cinnober enables exchanges and clearinghouses to monitor and manage risk in real time across multiple markets, both OTC and exchange-traded. The solution has proven itself at several high-profile CCPs globally, enabling margin and settlement savings for their clients thanks to netting effects, improved risk management, extreme performance and low latency, faster product development capabilities and efficient operations.