TeraExchange to launch central limit order book for swaps & OTC cleared derivatives

Christian Martin, CEO, TeraExchange

"Our agile, transparent multi-asset trading solution can be shaped to accommodate a near limitless number of objectives and strategies."

New OTC derivatives trading venture TeraExchange is preparing to launch a central limit order book for OTC cleared derivatives in Q4 2011. Featuring integrated cross-asset trading, analytics and voice broker assistance services, TeraExchange's core technology and platform aims to provide market participants with transparency, standardization, connectivity and liquidity. Strong risk controls combined with centralized clearing further align with the objectives of the Dodd- Frank Act to boost transparency and reduce systemic risk.

All eligible contract participants such as corporations, hedge funds, asset management firms and energy firms can utilise the following:

• Enhanced liquidity

• Improved pricing

• Full anonymity

• Pre-trade credit checks on all bids/asks

• Mitigated counterparty risk through central clearing with CME, ICE & LCH

• Voice broker / block trade assistance

• Streamlined reporting requirements

TeraExchange will offer cross-asset, multi-leg trading through integration with a variety of other liquidity destinations, all accessible through its proprietary front end. Analytics, including interactive charting indicators for both product and underlying instruments, as well as a customizable, unlimited-leg, cross- asset spread trading tool, are intended to enable users to more easily find trading, hedging and arbitrage opportunities.

• Enhanced liquidity

• Improved pricing

• Full anonymity

• Pre-trade credit checks on all bids/asks

• Mitigated counterparty risk through central clearing with CME, ICE & LCH

• Voice broker / block trade assistance

• Streamlined reporting requirements

"Legacy platforms won't work in this transforming market landscape and new world being created", states Christian Martin, CEO of TeraExchange. "Our agile, transparent multi-asset trading solution can be shaped to accommodate a near limitless number of objectives and strategies. Market participants will benefit from our fluid pricing analytics tools, highest-quality execution and unmatched reaction to evolving market dynamics for a truly differentiating competitive advantage."

Registered as an Exempt Board of Trade (EBOT) for swaps and other OTC cleared derivatives, TeraExchange intends to apply to become a Swaps Execution Facility (SEF) once SEC and CFTC rules are finalized in early 2012. TeraExchange is a service of Spring Trading, Inc. which has offices in Summit, NJ and Washington, DC, a subsidiary in Germany and plans to expand to Europe, Asia and other locations shortly.