tpMATCH

FAQ

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• tpMATCH Hedging

• What is tpMATCH?
  tpMATCH is an order matching system designed to allow participating traders reduce their future LIBOR equivalent fixing risk.
• What does it do?
  tpMATCH executes a trader's buy and sell orders, matched on amounts in the same tenor. It does this using an algorithm to eliminate the maximum number of positions.
• What instruments does tpMATCH currently support?
  FRAs*
• How does the matching process work?
  There are seven steps:
  
  • TP will inform you ahead of time on which date and at which time the matching run will occur.
  • On the run day TP will publish a curve.
  • TP will open up the system for traders to enter their orders.
  • When all orders have been uploaded TP will lock the system and begin the run process
  • Once the matching run is complete, IMM hedging will take place if this is standard for the run currency.
  • Results will be available on the secure tpMATCH web site. A trade report of all of your deals and residual positions will be emailed to you. Trade confirmations including Swapswire confirmations will be sent as required.
  • All deals will have trade dates set the day following the matching session.
• What is IMM hedging?
  IMM hedging is a process which returns the post –session risk profile of the portfolio of orders sent to the matching run to its pre-session distribution. These hedges are executed over the quarterly IMM dates. They are executed free of brokerage and will allow the pre and post matching run portfolio risk to be similar. A detailed description is available from tpMATCH Hedging page
• How is the curve calculated?
  Curves are derived using market recognised calculation methods and sources. Special points on the curve, such as month-ends and central bank meeting dates will be fully accounted for
• What are the market recognised sources?
  tpMATCH will independently survey several leading market participants, including Tullett Prebon voice broking for source data.
• What happens if the curve moves between the time it is set and the start of the matching run?
  tpMATCH will run in stable market conditions. Also, in those currencies with IMM hedging the hedges will cover any movement in the curve as your risk before and after matching will be very similar.
• How do I enter my orders into the system?
  Traders can enter their orders into a spreadsheet which will be sent to them by tpMATCH. The completed spreadsheet is emailed back to tpMATCH, whereupon the orders are uploaded into the system ready for matching. Alternatively, Traders can input orders via our secure website which feeds them directly into tpMATCH ready for matching.
• Can restrictions be specified for orders placed in the system?
  Yes. Restrictions can be placed on an individual order or an entire portfolio forwarded to tpMATCH. For example, restrictions can cover orders sizes, offsetting matching trades, year end turn risk, month end risk etc
• Can I enter orders for different tenors at the same time?
  Yes.
• When is the system locked for matching?
  Typically this will be within an hour of where the market is perceived to have closed for that day’s business but we will always ensure clients have sufficient time to enter orders.
• How do I set my credit limits?
  Credit limits can be set on the web site or on the order spreadsheet. These are stored in the system and can be updated by you at any time on the website or whenever you send your orders spreadsheets to a session.
• How will I receive my trade notifications?
  We can provide Swapswire confirmation as well as advising by email and on the web site.
• In what format will I receive my trade confirmations?
  We will provide fax, telex and Swapswire confirmations. We also send a trade report to traders as soon as the session has closed
• Are there terms and conditions governing tpMATCH?
  If your institution has not signed a formal user agreement traders must agree to our standard terms and conditions displayed on the secure website on a session by session basis if sending orders using that method. If orders are sent via a spreadsheet the client is, by default accepting our terms and conditions.
• Is the web site secure?
  Yes. The website is fully encrypted with an SSL certificate. Access to the web site requires confidential Username / Password authentication.
• * tpMATCH also supports Single Payment Swaps (SPS) in relevant Far-Eastern markets

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