Our Capital Markets area has a team specialized in the management and negotiation of these financial instruments.
Tradition has developed a network of offices in more than 30 countries which allows us to connect clients throughout the five continents. We cover all the key financial centers of the world, maintaining close, trusting and long-lasting relationships with our clients globally.
Our in-depth knowledge of local markets and products and our ability to analyze and disseminate cross-information in real time position us as one of the largest intermediaries for financial products globally.
- Basis Swaps
- Credit Derivatives y Structured Credit
- Currency Derivatives
- Inflaction Products
- Interest Rate Derivatives
- Interest Rate Options
- Interest Rate Swaps
- Latin American Derivatives
- Short Dates
- Other products
A Cross Currency Basis Swap is afloating/floating swap where banks can swap one currency for another. As there is an exchange of principal, a Cross Currency Basis Swap is not an OBS (off balance sheet) product.
Primarily a bookkeeping instrument, it can be used to hedge out floating flows created by various IRS (Interest Rate Swaps) trading books. It can also be used to hedge flow between OBS curves and Forward FX curves.
The development of the Cross Currency Basis market has enabled Fixed Income areas to look at a variety of currency issuance to raise funds using the Cross Currency Basis Swaps to switch the flow back to the desired currency.
Our teams, based in London and Lausanne, have a wealth of experience in Forward FX, IRS markets, as well as Cross Currency Basis. Such experience, together with our global network, leaves Tradition well placed in a market that will continue to expand.
Our updated Basis reference page Reuters TRADBASIS1 is a widely used pricing reference tool for institutional Fixed Income desks.
- Single Currency: Sterling, Dollar, Euro
- Cross Currency: South African Rand, Emerging Markets, G7 Currencies
Credit Derivatives y Structured Credit
Tradition España operate with:
- Single name Credit Default Swaps (CDS) across the credit curve.
- Credit derivative indices.
- Options on CDS and indices.
- Tranched credit indices (correlation).
Tradition’s staffs in these relatively new product areas are involved in their development with the major financial institutions, from the standardization of documentation to the provision of liquidity.
Our trading professionals are uniquely qualified, with a vast range of credit and equity knowledge, having years of experience in investment banking, portfolio management, proprietary trading, institutional sales, risk management and structuring.
The experience of our staff allows us to recognize relative value and arbitrage opportunities across both cash and derivative markets. We can source illiquid bonds and asset swaps, structured floaters and structured interest rate notes, and new issue and secondary market CDOs.
Tradition continues to monitor developments in credit and equity markets, and will offer new derivative products that fill out the capital structure in all major financial centers.
Entre ellos se encuentran:
- Equity default swaps.
- Recovery swaps on individual credits.
- CDS on Asset-Backed Securities (ABS).
- CDS on preferred securities.
- Index on ABS and preferreds.
Tradition-ICAP was formed in July 2000 by the merger of the OTC FX Options divisions of the TFS Group and ICAP plc. Tradition-ICAP has offices in New York, London, Frankfurt, Copenhagen, Sydney, Tokyo and Singapore.
Tradition-ICAP conducts its business as an independent intermediary in OTC FX Options. In November 2001, the company integrated the Volbroker system into its currency options business. This created an interdealer broking consortium that combines the strengths of voice-brokered liquidity together with the market’s leading FX Options electronic broking platform.
The Volbroker platform was designed by traders for traders, and is used by banks all over the world. A list of banks involved in its creation can be viewed on the Volbroker Partner Banks page.
Inflation Products (Inflaction Swaps)
Tradition has been at the forefront of the Inflation Swap market, and maintains a pivotal presence amongst intermediaries in Inflation products.
Based in London, with teams in Europe, Asia, the Middle East and US we provide full coverage of the market in various currencies and Inflation linked products.
Our product coverage includes:
- Asset Swaps.
- Inflation linked Bonds.
- Illiquid Currency products.
Interest Rate Derivatives
An interest rate derivative is a derivative where the underlying asset is the right to pay or receive a (usually notional) amount of money at a given interest rate.
The interest rate derivatives market is the largest derivatives market in the world.
At Tradition Spain we hedge the following interest rate derivatives:
- 0-2 Years:
- Dollar, Sterling, Euro, SA Rand and Emerging Markets.
- 2+ Years:
- Dollar, Sterling, Euro, Emerging Markets and SA Rand
Interest Rate Options
- CAPs and Floors.
- Bermudan Options.
- Inflation Swaps/Options.
- CMS and CMT Swaps/Options.
- Spread Locks.
Tradition is an acknowledged market leader in the interdealer brokerage industry, and is committed to improving liquidity for our global clients through sophisticated technology, superior execution and strict client anonymity.
- South African Rand.
- Turkish Lira
- Asian Currency:
Interest Rate Swaps
An interest rate swap is an agreement between two parties to exchange stated interest obligations (i.e. fixed or floating) for a certain period in respect of a notional principal amount.
Cross Currency Swaps
- All G10 countries.
- Czech Republic.
- South Korea.
- South Africa
Pre x CDI
A Pre x CDI Swap is an offshore fixed-floating Brazil swap. Pre is the fixed rate and CDI is the floating rate of the swap. The floating rate is the overnight interbank deposit average rate (Selic) which is calculated exponentially on a 252-business-day basis.
- Sterling, Dollar.
- Emerging Markets.
- Asian & Singapore: IRS, OIS, NDS, NDIRS, NDOIS, CCS.
- G10: IRS, CCS.
Latin American Derivatives
- Chile, Peru, Colombia, Venezuela, Brazil and Mexican Derivatives:
- Interest Rate Swaps.
- Cross-currency Swaps.
With personnel located in our Mexico City, Santiago and New York offices, we focus daily on enhancing the efficiency of the market by compiling the best bids and offers, generating liquidity for our clients and understanding and supporting them with the highest level of professionalism.
Tradition’s clients in the federal funds market include commercial banks, thrift institutions, agencies and branches of foreign banks in the United States, federal agencies, and government security dealers. Our voice-dominated brokerage services help these institutions obtain a yield on bank reserves that would otherwise remain idle.
Tradition’s role as an intermediary provides us with the opportunity to arrange transactions between lenders and buyers in Federal Funds, Eurodollars, and Certificates of Deposit. Execution of all trades occurs on an anonymous platform for each client, and ranges from overnight to 28 days in duration. Our experienced staffs are an acknowledged market leader in the brokerage industry and are committed to constant improvement.
Our presence in all the major financial centers ensures that our clients receive instant quotes in all the major traded currencies as well as the exotics and emerging markets.
- Central banks.
- National and local government organizations.
- Worldwide financial institutions.
- Insurance and pension companies.
- Mutual and money funds.
Allows Tradition to provide its clients with the resources they need to deal in today’s fast moving international markets.
The Interbank team provides quotes on everything from overnight money to deals with maturities out to five years, in primarily Deposits and Certificates of Deposit. We work closely with our Foreign Exchange, Off Balance Sheet and Repo teams to provide arbitrage packages in all currencies and cross products.
- Non-Deliverable Swaps (NDS):
- Emerging Markets and G8 Currencies.
- Overnight Index Swaps:
- The London office covers:
Sterling, Dollar, Euro, Overnight Fed Funds and Short Dates.
- The London office covers:
- Turkish Fixed Income and Money Markets.