“Changing regulation in the OTC derivatives markets”

“Financial policymakers globally are now seeking to corral risks associated with over-the-counter (OTC) derivatives. It is anticipated that increased centralization via clearing houses will generate greater transparency and eliminate many risks associated with financial systems. In particular, since the credit crisis of 2008-2009, the US and European regulators have pushed for reform of the OTC derivatives market. They have demanded change in the regulatory regime which will require OTC clearing at Clearing Houses, regulatory capital set aside for each bi-lateral and a requirement for markets to trade electronically to provide better transparency and discovery of market depth.”

The Cleartrade Exchange Pte Ltd (“Cleartrade Exchange”) is established in Singapore and operates as a Recognised Market Operator (RMO) for global participants in the OTC commodities markets in response to the changing nature of the OTC market.

Key Facts

Direct and open screen trading at Cleartrade Exchange will be available to all participants who have signed up as Trading or Broking members under the trading policies and rule book

Following membership approval trading members and their representative traders will be given secure access to the Cleartrade platform for placing of orders and executing transactions.

The Cleartrade platform utilises a web services delivery methodology which will run on any standard portable computing (PC) platform. This approach allows quick, secure deployment for companies on existing infrastructure whilst supporting location independent users.

Executions of trades on the Cleartrade Exchange screen are on the basis of HIT and LIFT.

All participants have access to the entire depth of market and can fill an order on an average price by hitting or lifting multiple orders.

The Cleartrade platform also contains a consolidated tape displaying all trades concluded by participating traders and brokers as well as a time sequenced market event view for the review of bids and offers.

Cleartrade Exchange is an independent organisation with headquarters in Singapore and offices in London.