About Elixium (USA)
Elixium, a global all to all electronic trading marketplace, is designed to provide a transparent and unbiased venue for trading collateral and seeks to address the growing issues around liquidity which have been affected by on-going market evolution.
Elixium NA is a trade name of TFS Derivatives, LLC, a broker-dealer registered with the Securities and Exchange Commission ("SEC") and a member of the Financial Industry Regulatory Authority ("FINRA"). Elixium NA is in process of registering to operate the Elixium repo platform as an alternative trading system ("ATS") pursuant to the requirements of Regulation ATS under the Securities and Exchange Act of 1934 ("Exchange Act") and will be open to all financial participants including: corporate treasuries, CCPs, asset managers, hedge funds, banks, government issuers, central banks, insurers, sovereign wealth funds and agencies. TFS Derivatives, LLC, is a Tradition Group company.
We have adopted a user-friendly, modular approach to legal documentation with the option of either subscribing to the Elixium standard MRA (with bespoke annexes) or utilising existing MRA documentation between counterparties. Underpinning this, Elixium utilises a unique credit limit framework where participants retain full control, in real time, over the products and firms with whom they are willing to trade.
Using standardised products and processes, participants have access to a range of maturities, overnight and up to 12 months, currencies and collateral baskets. Over the coming months Elixium will expand its initial offering to over 40 collateral baskets covering fixed income and equities in USD, GBP, EUR, CAD and JPY via cleared, triparty and bilateral settlement.
The fully transparent functionality of Elixium allows participants to identify credit slippage and view depth and liquidity across tenors and collateral baskets offering multiple execution protocols.
- Auction, using standard collateral baskets at a predetermined rate
- CLOB (Central Limit Order Book) live markets utilising fixed tenor points designed to provide a deep liquidity pool and avoid sensitive date specific squeezes
- RFQ (Request for Quote) participants send anonymous, non-standard date quote requests to designated liquidity providers with whom they share available credit
- IOI (Indication of Interest) a participant can anonymously express interest in non-standard structures and trades
- Collateral transformation will enable participants to exchange collateral to generate a fee or source higher quality inventory
In summary, Elixium has been designed to provide:
- A reduction in counterparty credit risk through collateralisation
- A transparent, unbiased, regulated peer to peer market structure
- Rapid growth and diversity of counterparty base
- An efficient conduit to raise/invest cash/collateral on a secured basis to manage margin and cash-flow
- Accelerated counterparty on-boarding
- Triparty, cleared and domestic settlement methodology
- Pre-Trade anonymity in an ATS with a robust credit framework
- Collateral upgrade possibilities for HQLA with NSFR and LCR benefits