Trad-X API Product Specification

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Product Code:

TDX-FOB-AME-ARM

Description:

Trad-X was developed in conjunction with the world’s largest market makers, which provide firm, irrefutable and transparent two-way pricing in real-time for a broad range of USD, EUR and GBP denominated interest rate swap and data products. Receiving up to 10 million incoming orders per day, Trad-X’s market-leading implied pricing engine produces in the region of 1 billion firm, irrefutable orders. With liquidity streamed from 14 global desks, our USD, EUR and GBP rates data is unparalleled in consistency, quality and depth. The platform offers a flexible execution methodology utilising hybrid, voice and electronic capabilities and the provision of functionality that meets the demands of today’s market with corresponding data points.

Data Source:

Trad-X trading platform used by 14 Tradition’s global brokerage desks for USD, EUR and GBP rates

Delivery Method:

real-time: FIX API

Data Frequency:

Real-time from Trad-X trading platforms using FIX API

Data Format:

FIX API specs

Data Coverage:

Asset Class: IRD Interest Rate Derivatives ( IRD )
Sub Class: Major IRD types like Interest Rate Swaps, OIS and Currency swaps
Key stats : 10 million incoming orders per day. 14 global desks USD, EUR and GBP major currencies supported

Trad-X Data Coverage

Country	Currency	Transaction Type
United States	USD	USD AM SOFR Outrights, Switches, Butterflies, 1Y Gap Butterflies
United States	USD	USD Spread Over vs SOFR
United States	USD	USD MEDIUM TERM SWAPS vs SOFR
United States	USD	USD SOFR vs FF
United States	USD	USD SOFR vs 3M LIBOR
United States	USD	USD SOFR vs 1M LIBOR
United States	USD	USD SOFR OIS
United States	USD	USD SOFR OIS FOMC
United Kingdom	GBP	GBP SONIA Outrights, Switches, Butterflies
Europe	EUR	EUR AB vs 1M EURIBOR Outrights, Switches
Europe	EUR	EUR AB vs 3M EURIBOR Outrights, Switches, Butterflies
Europe	EUR	EUR AB vs 6M EURIBOR Outrights, Switches, Butterflies, 1Y Gap Butterflies
Europe	EUR	Bund, Bobl, Schatz Asset Swap Spreads
Europe	EUR	Gadgets
Europe	EUR	ESTR
Europe	EUR	ESTR vs 3M EURIBOR Basis
Europe	EUR	3M EURIBOR vs 6M EURIBOR Single Currency Basis Outrights, Switches, Butterflies

Glossary

Term	Definition
GBP SONIA Outrights	Interest rate swaps where the floating leg is based on the SONIA rate. In these swaps, one party pays a fixed rate while the other pays a floating rate tied to SONIA.
GBP SONIA Switches	Switches in the context of SONIA trading involve the simultaneous buying and selling of two different SONIA-based instruments to take advantage of relative value differences. Switches can include: Maturity Switches: Switching between SONIA instruments of different maturities to manage duration risk or to capitalize on changes in the yield curve. Instrument Switches: Moving between different types of SONIA instruments, such as from a SONIA future to a SONIA swap, depending on market conditions and relative pricing.
GBP SONIA Butterflies	Butterfly Spread: Involves buying or selling a combination of SONIA futures or swaps that are arranged in a spread. For example, a trader might buy a short-dated SONIA future, sell two medium-dated SONIA futures, and buy a long-dated SONIA future. The goal is to profit from changes in the shape of the SONIA yield curve, particularly the curvature.
ESTR	The ESTR rate, or Euro Short-Term Rate (€STR), is a benchmark interest rate for the euro area. It represents the wholesale euro unsecured overnight borrowing costs of banks.
EURIBOR	The EURIBOR rate, or Euro Interbank Offered Rate, is a benchmark interest rate at which banks in the Eurozone lend to one another on an unsecured basis. It is widely used as a reference rate for various financial products, including loans, mortgages, and derivatives.
Gadgets	Gadgets is a complex trading strategies or structures that involve multiple swaps or a combination of swaps and other derivatives. Gadgets involve a combination of various swap instruments, such as interest rate swaps, currency swaps, or credit default swaps. They might also include options or futures to create more intricate trading structures.
SOFR	United States: SOFR (Secured Overnight Financing Rate)
OIS	Overnight Indexed Swaps
FOMC	The FOMC ( Federal Open Market Committee ) is the monetary policymaking body of the Federal Reserve System that meets periodically (around 8 times per year) to assess economic and set the target federal funds rate
FF	The FF rate, or federal funds rate, is the target interest rate set by the Federal Reserve for overnight lending between banks. It is set by the Federal Open Market Committee (FOMC), which meets eight times a year to determine the appropriate rate based on economic conditions
Spread Over	Spread Over Treasuries refers to the difference in yield between a non-Treasury fixed-income security and a comparable Treasury security. The spread is a measure of the risk premium that investors demand for holding a bond that is not backed by the U.S. government.
Asset Swap Spread (ASW)	An Asset Swap Spread (ASW) is a measure of the yield differential between a fixed-income security (like a government bond) and a corresponding interest rate swap. The ASW essentially reflects the premium that investors require to hold a particular bond instead of a risk-free interest rate.
Bund, Bobl, and Schatz	Bund: This refers to long-term German government bonds, typically with maturities of 10 years or more. The 10-year Bund is often used as the benchmark bond for the Eurozone. Bobl: This refers to medium-term German government bonds with maturities of 5 years. Schatz: This refers to short-term German government bonds with maturities of 2 years.
Bund, Bobl, Schatz Asset Swap Spreads	Bund, Bobl, and Schatz Asset Swap Spreads are financial metrics used in fixed-income trading, particularly in the context of German government bonds. These spreads measure the difference between the yield on a German government bond (Bund, Bobl, or Schatz) and the corresponding swap rate.
AB	AB stands for Annual Bond – it’s just represents the day count of the underlying instrument

Tradition Data Packages:

Product Code	Product Name
TDX-FOB-AME-ARM	Trad-X FIX API - Full order book - Americas - Regional Majors
TDX-FOB-EUR-ERM	Trad-X FIX API - Full order book - Europe - Regional Majors - GBP
TDX-TOB-AME-ARM	Trad-X FIX API - Top order book - Americas - Regional Majors
TDX-TOB-EUR-ERM	Trad-X FIX API - Top order book - Europe - Regional Majors - GBP

FAQ:

Question	Answer
What are the Key benefits of TraditionData Data package?	Manage Interest Rate Risk: Interest rate swaps can be used to manage the interest rate risk in a portfolio by allowing market participants to exchange a stream of fixed interest payments for a stream of floating interest payments, or vice versa, which can help to mitigate the impact of rising or falling interest rates on the value of the portfolio. Enhance Yields: You can enhance the yield of a portfolio using interest rate swaps by allowing market participants to take advantage of favourable interest rate differentials between different markets or currencies. Improve Diversification: By using interest rate swaps, investors can diversify their portfolio by adding exposure to different markets or currencies, which can help to reduce overall portfolio risk. Hedge Interest Rate Exposure: Interest rate swaps can be used as a hedging tool to offset the interest rate exposure of a portfolio. For example, a fixed rate borrower can use an interest rate swap to pay floating rate, thus hedging the interest rate risk. Create Synthetic Positions: Create synthetic positions by using interest rate swaps which can be used to replicate the cash flows of an underlying asset without actually owning the asset. This can be useful for investors who want to gain exposure to a specific market or asset class without incurring the costs or risks associated with owning the underlying asset. Enhance Yields on Fixed Rate Assets: Interest rate swaps can be used to enhance the yield on fixed rate assets by swapping the fixed rate for a floating rate, thus taking advantage of favourable interest rate differentials between different markets or currencies.

Question

Answer

What are the Key benefits of TraditionData Data package?

Manage Interest Rate Risk: Interest rate swaps can be used to manage the interest rate risk in a portfolio by allowing market participants to exchange a stream of fixed interest payments for a stream of floating interest payments, or vice versa, which can help to mitigate the impact of rising or falling interest rates on the value of the portfolio. Enhance Yields: You can enhance the yield of a portfolio using interest rate swaps by allowing market participants to take advantage of favourable interest rate differentials between different markets or currencies. Improve Diversification: By using interest rate swaps, investors can diversify their portfolio by adding exposure to different markets or currencies, which can help to reduce overall portfolio risk. Hedge Interest Rate Exposure: Interest rate swaps can be used as a hedging tool to offset the interest rate exposure of a portfolio. For example, a fixed rate borrower can use an interest rate swap to pay floating rate, thus hedging the interest rate risk. Create Synthetic Positions: Create synthetic positions by using interest rate swaps which can be used to replicate the cash flows of an underlying asset without actually owning the asset. This can be useful for investors who want to gain exposure to a specific market or asset class without incurring the costs or risks associated with owning the underlying asset. Enhance Yields on Fixed Rate Assets: Interest rate swaps can be used to enhance the yield on fixed rate assets by swapping the fixed rate for a floating rate, thus taking advantage of favourable interest rate differentials between different markets or currencies.

This document and its contents are confidential. It is intended solely for the use of the individual or entity to which it is provided. Information contained herein is the property of Compagnie Financière Tradition S.A. or any of its subsidiaries and/or TraditionData (together “Tradition”). Unauthorised disclosure, copying or distribution of such information is strictly prohibited, and the information shall not be redistributed in any form to any third party, in each case without the prior consent of Tradition. Whilst every effort is made to ensure the accuracy of the information contained herein, no warranty, condition or guarantee is given by Tradition in respect of any information. Nothing herein constitutes investment advice or an offer, or solicitation of an offer, to buy or sell any financial product. To the maximum extent of the law, Tradition accepts no responsibility for any reliance placed on the contents of this document and accepts no liability for any direct, indirect or any other loss arising out of any use of the information contained in this document or any omission from it. It is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to any applicable law or regulation. Copyright © Tradition. TraditionData is a trade mark of Tradition. Commercial in Confidence. August 2024

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