CreditTrade implements straight-through processing

London-based inter-dealer broker CreditTrade has adopted straight-through processing by teaming up with London-based technology firm T-Zero. Within the next few weeks, banks will be able to streamline the processing and confirmation of credit derivatives trades that they execute through the broker, using the T-Zero platform. About six banks are signed up for the initial rollout.

"We see T-Zero as an easy route for us to obtain connectivity to our clients. It was a question of connecting to the market efficiently and focusing on transactions, which is what we’re good at,” said Paul Ellis, chief executive of CreditTrade. The alternative would have been to build the infrastructure themselves, similar to GFI and Icap’s efforts, he said. “But everyone has a different way of doing that and banks have a limited amount of resources.” Ellis said one of his major concerns was over the leakage of information. T-Zero’s parent company is New York-based interdealer broker Creditex, a competitor. “They addressed my concerns about whether Chinese walls were in place to protect the brokers,” said Ellis.