Sept. 28 (Bloomberg) -- The Commodity Futures Trading Commission granted designated contract market status to trueEX, a swaps exchange founded by Sunil Hirani.
The market, which expects to offer trading in interest-rate swaps in the first quarter, is the first exchange approved after passage of the Dodd-Frank Act in 2010, the CFTC said in a statement today on its website. Hirani, 46, co-founded Creditex Inc., a credit-swaps brokerage he sold to Intercontinental Exchange Inc. in 2008 for $513 million.
“The current lack of confidence in global markets -- particularly in derivatives markets -- has created the impetus for a regulated, transparent and rules-based trading platform,” Hirani said in the statement.
Unlike exchanges in the futures market, trueEX will allow users to send trades to the clearinghouse of their choice, according to the statement. Exchange owners such as CME Group Inc. and Intercontinental process futures with clearinghouses they own. Under Dodd-Frank, exchanges or swap execution facilities must offer investors the choice of where their transactions are cleared.
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