For a long time, we have been concerned by the common practice in Over the Counter (“OTC”) derivative markets of end users conducting all their hedging activity with a small group of their “relationship” banks.

Corporate finance theory has long established that companies should maximise their Enterprise Value no matter who the shareholders are.

Banks have traditionally provided funding and hedging acting as principals. The financial crisis has critically reduced banks’ appetite for risk, thus often reducing their role in several traditional investment banking functions to that of ‘matched brokers’.

OTC Exchange

OTC Exchange is a market place created and managed by TradeRisks. The OTC Exchange platform provides non-bank hedging solutions to OTC derivative end users, such as corporates and regulated utilities, seeking to exchange interest rate and inflation risks directly with institutional investors, such as pension funds and insurance companies.

OTC Exchange also facilitates the direct placement of rated and listed notes with end investors, and intermediates hedging transactions with banks with whom borrowers have no lending “relationship”, i.e. no product tie-ins or bundling of loans and hedging.

OTC Exchange promotes two core themes in the financial markets, namely (i) transparency and fair competition in the provision of OTC hedging and debt products, and (ii) the creation of new non-bank channels for funding and hedging as supported by HM Treasury and the Bank of England.

Use of this website is subject to the Regulatory Information and Disclaimer page and all users consent to enter into the Confidentiality Undertaking. All users of OTC Exchange must enter into the Terms and Conditions.

Counterparties signed up to OTC Exchange Terms and Conditions and Confidentiality Undertaking will have access to restricted resources including documentation, guidance for OTC Exchange market participants, and offered OTC positions.

Click here to go to the Terms of Business

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