OTCX Expands Capabilities After Receiving ASIC Market Exemption Licence

OTCX, a provider of electronic derivatives trading capabilities, announced today that it has expanded its offering with trading capabilities which include OTC Equity Derivative and Interest Rate Derivative trading for the Australian market.

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Market Exemption Licence

The Australian Securities and Investments Commission (ASIC) approved a Market Exemption Licence for OTCX in October, enabling regulatory monitoring of its platform which includes a regular reporting requirement to ASIC.

OTCX’s RFQ platform allows full straight through processing of dealer to client OTC derivative trades and removes the reliance on unregulated chat and voice systems in an increasingly regulated environment. This will enable Australia’s leading trading houses, banks, asset and treasury managers to evidence best Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term as well as straight through processing where possible.

OTCX started working with the United Kingdom Trade & Investment (UKTI) office and KPMG, Sydney, and through the collaboration was introduced to ASIC’s Innovation Hub.

As a result, OTCX was able to benefit from faster processing times and the more focused and skilled support network of the Innovation Hub in order to successfully develop in Australia.

OTCX is looking to rapidly expand its OTC trade capture coverage by offering clients the ability to trade cleared and non-cleared products as well as more complex OTC workflows. OTCX will also roll out its platform to new clients in Europe and North America in 2017.

Dan Birch, Managing Director, OTCX Asia Pacific, commented: “Working with ASIC has been a hugely positive experience. The expertise, direction and responsiveness of the team in the Innovation Hub was very helpful as we looked to establish a permanent position in the Australian market. We look forward to continue our growth and work closely with ASIC in the future.”

Background

OTCX was one of the first web-based trading platforms for exotic and vanilla OTC derivatives, allowing users to negotiate trades more efficiently and evidence best execution. The firm’s Request for Quote (RFQ) platform enables the buy-side to be fully compliant with all impending Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term such as MIFID ll.