Turquoise NYLON™, the derivatives business of Turquoise, is launching an innovative cleared contract which combines the flexibility of OTC equity swaps with the efficiencies of central clearing.
The Turquoise NYLON™ platform will allow participants to agree, negotiate and execute trades and manage lifecycle events and is open to buy-side and sell-side Turquoise Members.
Members benefit from the innovative Turquoise NYLON Venue Rights™, allowing firms to make binding agreements under the Turquoise Rules, mirroring the flexibility typically found under bilateral swap agreements.
Trading via Turquoise NYLON™:
- Takes business out of scope of the global Un-cleared Margin Rules ("UMR")
- Offers risk-based and leverage ratio capital savings versus bilateral swaps
- Increases transparency through trading on-venue
- Lowers margins via multilateral netting
- Provides a reduction in counterparty credit risk through the CCP; and
- Delivers operational efficiencies, and eases on-boarding of new counterparties with venue and CCP rules rather than bilateral agreements.
All business will execute on Turquoise, with the Contract Specification forming part of the Turquoise Rules, and cleared by LCH Limited, in their EquityClear clearing service.
Clearing for equity swaps: the time is right
This whitepaper, created in partnership with Panoramix (a financial services consulting firm),
explores the trends and challenges of bringing clearing to the equity swap market.
It covers:
- An examination of the difficulties to date in providing cleared solutions in equity swaps markets
- The reasons why clearing is now a very compelling response to rising pressures for participants; and
- An overview of LSEG’s new product offering
Interested in trading on Turquoise NYLON™?
If you’d like to talk to us about trading on Turquoise NYLON™, please contact us via the form and a member of our team will be in touch.
