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The euro swaps market is beginning an experiment with exchange-style trading, after the first of 20 clients signed up to a new central limit order book (Clob) offered by interdealer broker, Tradition.

Best trading platform overall: Envision Financial Systems, MarketsFlow, MIAX Options, ParFX, Tethys Technology, TraditionSEF, Interactive Brokers, Wolverine Execution Services

According to Scott Fitzpatrick, CEO of TraditionSEF, this has been at the heart of the build out over the past two years. “Considering the scope of products across asset classes affected by the implementation of the Dodd-Frank Act, the attention to detail around how the core principles of the regulation have been implemented cannot be underestimated,” he says. “It has been at the centre of how we have built the platform and set up our business.”

The breakdown of trust in ISDAfix following allegations of collusion and manipulation in 2012 led to a complete overhaul of the benchmark. A recent report by the Financial Conduct Authority proves that the hard work is paying off, reaffirming the potential for the model to be applied to other benchmarks. By Dan Marcus, CEO of Trad-X, and member of the ICE Swap Rate oversight committee.

Scott Fitzpatrick, CEO of TraditionSEF, added: "Over the past year, our team has worked extremely hard to establish our SEF business as the pre-eminent venue in the U.S., while boosting our presence in short-dated interest rate swaps. Winning this award is testament to the efforts of our team and our commitment to providing the best service possible to our clients."

SEF of the Year: Tradition SEF.

Earlier this year, Bloomberg has also launched a new data service consolidating NEX’s BrokerTec US Treasuries data with USD Spread-Over data from Tradition’s Trad-X platform.

“Looking at the market, we could see dealers trading together on the Clob and clients trading with dealers by RFQ or voice, but there was no dealer-to-customer order book. This initiative will provide an alternative to voice trading and RFQ, and the opportunity to trade anonymously on irrefutable prices without market impact,” says Philippe Dudon, global head of business development at Trad-X.

According to Dan Marcus, chief executive officer of over-the-counter derivatives trading platform Trad-X, this is a good solution for Sonia. He explained that when looking to create new benchmarks from firm bids and offers you can take a mid-swap, and when building up Sonia there needs to be an “intelligent way” to do so.

Compagnie Financière Tradition activity grew in the first nine months of the year with reported consolidated revenue of CHF 664.0m compared with CHF 600.8m in same period in 2017, up 9.0% in constant currencies. At current exchange rates, consolidated revenue presented an increase of 10.5%.