Optimize is part of a suite of Risk Reduction Services offered by selected Tradition venues. It aims to reduce outstanding fixing risk in derivative portfolios and has been developed using the most up to date optimization techniques.

On a frequent schedule we will run a session (the “Round”) targeting a particular currency IRS. We will disseminate mid-market prices for all dates at the commencement of the Round. We then collate all the information from orders submitted by our clients, including risk management parameters. Advanced optimization techniques are applied so that a fair set of results that respect all client criteria is created. After completing a session each client can receive a set of multi-lateral trades that are market neutral.

The system is designed to be fast and easy to use. The main steps in the session are shown below. The timing of each run is currency specific and maybe affected by underlying market conditions.

Clients will be notified about the cut-off time after which no further submissions or changes to portfolios will be accepted.

Post-trade details

• The set of trades will be sent electronically via Markitwire (or equivalent service if agreed in advance with all clients) and are dependent on the correct addressing information as supplied by participants in advance.
• The set of trades for each client will be sent in a spreadsheet form for notification purposes after the Round has completed.
• The set of trades resulting from an Optimize session represent the output for all participants. This may result in some, or all positions entered by an individual not fully trading or trading at all.

Terms & Conditions

• Onboarding: Participants of the Optimize service must be existing on-boarded clients of a Tradition Broking Entity. As such the Optimize service will operate under the existing Terms & Conditions of the venue it is operating through. Optimize is not responsible for the regulatory requirements of the clients themselves directly or indirectly.
• Risk Mitigation: The Optimize service is not intended as a trading service for clients to take a view on market direction but is built to be a risk mitigation service to help clients manage their portfolio risks.
• Obligations: Clients are responsible for the accuracy of the portfolios they submit. The results of each Round are binding.
• Confidential Information: All the information submitted by the client is private and confidential and will not be shared by Optimize with any other participants or any other part of the Tradition Group.
• Curve formation: The Optimize service is offered on a flexible calendar and a Round is open to participation for an extended duration of time such that no resultant trades that are identified by the service should be considered as price forming; nor should the service be considered a benchmark of any kind.
• Issue resolution: The Optimize service will work with best endeavours to resolve any issues caused by incorrect information passed by the clients but cannot be held responsible for the result of any such inaccuracy.

For further information contact your Optimize salesperson or email [email protected]