Tradition facilitates first ever, bilaterally-brokered AUD/USD swap trade using LCH SwapAgent

Tradition, one of the world’s largest interdealer brokers in over-the-counter commodity and financial products, has facilitated the first, brokered AUD/USD cross-currency swap trade using LCH SwapAgent.

The AUD/USD trade was executed between Mitsubishi UFJ Financial Group (MUFG) and another counterparty on 20 November 2019. Tradition’s global presence, market knowledge and connectivity ensured it was the ideal partner to facilitate this trade.

SwapAgent is a service designed to simplify the processing, margining and settlement of non-cleared derivatives. It benefits from LCH’s expertise in serving and managing risk for the cleared Rates and FX derivatives market.

Nathan Ondyak, Global Head of LCH SwapAgent, comments: “Since launching in 2017, customers trading non-cleared derivatives have utilised SwapAgent to gain many of the efficiencies that they have become accustomed to in the cleared market. We are delighted to welcome MUFG as one of our newest members to the service. The completion of the first brokered AUD/USD trade between bilateral counterparties using SwapAgent is an important milestone for participants trading cross-currency swaps.”

Amit Kantaria, Director in the Rates Trading Group at MUFG, EMEA, added: “MUFG is pleased to have been able to participate in the first brokered AUD/USD cross currency swap through SwapAgent. We believe that this is the first step towards an exciting future, and look forward to this evolution of the uncleared derivatives market.”

Mike Hayter, Manager of the cross-currencies broking desk at Tradition, comments: “Tradition is delighted to facilitate the first, brokered bilateral AUD/USD swap trade using LCH SwapAgent. This is a crucial service that improves standardisation, introduces efficiency and reduces operational and credit risk counterparties in the non-cleared derivatives market.”