Counterparty & Tenor End Dates
Counterparty Connections
The TOD Markets platform models your ISDAs and bilateral credit agreements and uses this model as the basis of price availability and order matching.
For a credit connection between two companies to be valid in the system, both parties need to approve their connection. If either party switches off the other, the connection is severed, preventing price discovery and order matching between each of them.
It is the responsibility of all platform users to ensure their connections are up to date and that any changes to credit standing in reality are reflected in the system.
Selecting Trading Entities
In some cases, market participants will have a single trading desk with multiple trading entities (distinct businesses) under them. To enable a smooth trading experience, which names the correct trading entity on your trade confirmations and other system records, you can select the correct trading entity when connecting to your counterparty.
Reciprocal Counterparties
Because both counterparties have agreed to the credit connection, this forms a reciprocal connection that is modelled by the trading platform.
Company 1 | status | Result | status | Company 2 |
|---|---|---|---|---|
Alpha Co | approved | Reciprocal Connection | approved | Delta Co |
Bravo Co | approved | Not Connected | not approved | Foxtrot Co |
Charlie Co | not approved | Not Connected | not approved | Golf Co |
Counterparty Tenor End Dates
Some counterparties will have shorter credit windows than others, this “good name until x date” is typically called “Tenor” which is how this date will be referred to in this document. The TOD Markets trading platform accepts a Tenor End Date, which will guard your orders from being matched with that counterparty for tradable assets with periods that end after that date.
For example; if you have a tenor expiry with ‘Acme Corp’ on the 30th of June 2025, then you can expect that your orders will only match with those from ‘Acme Corp’ for assets with end dates that expire on or before the 30th of June 2025, including Q225 which ends on the 30th of June 2025.
You can also expect that when you see good name pricing on the TOD markets platform, it accounts for these Tenor limits. So you will see prices that are available to you, respecting the tenor limits you have established.
Who should use the tenor end date?
Typically, the tenor is imposed by the larger and more financially stable company to limit their exposure to smaller (and potentially riskier) market participants.
Because only one party needs to apply a tenor end date for it to apply to your connection, we recommend that the larger party be the one who maintains this date.
If both parties agree to maintain the tenor end date, they should coordinate with each other when changes are made.
How is the Tenor End Date implemented?
Either counterparty can input a tenor limit (see how to update section below) and this date will apply to both counterparties. In the below table, the resulting end date between these reciprocal counterparties is shown, and we see how the tenor end date is applied.
Company 1 | Tenor end date | Resulting end date | Tenor end date | Company 2 |
|---|---|---|---|---|
Alpha Co | blank | foreseeable future | blank | Foxtrot Co |
Charlie Co | 01/07/2025 | 01/07/2025 | blank | Bravo Co |
Bravo Co | 01/12/2025 | 25/03/2025 | 25/03/2025 | Golf Co |
If each counterparty enters a different date, the effective date used by the system will be the earlier of the 2 dates.
If only one counterparty enters a date, then that will be the date that the system uses.
You can only see the tenor end date that you have entered, not the effective tenor date or that of the counterparty. You should keep your counterparties informed of any limits that you have imposed on your credit arrangements between yourselves, and as always; keep your counterparty list up to date on the TOD Markets Platform.
You don’t need a tenor end date for every one of your reciprocal counterparties!
If a credit agreement for a given counterparty extends beyond the horizon of the assets offered on TOD Markets (usually 2 full years into the future at the time of writing) then you don’t need to add a tenor end date.
How to update a counterparty Tenor End Date
When viewing your counterparty, you have a single date input field where you can add the tenor end date.
In June 2025, we added the ability to input a rolling ‘Tenor Months’ value. If you use this, the system will automatically update the tenor end date every night.
Pressing update will save this as your tenor end date. To remove the tenor end date, you can clear this date field and press update again.
Now, on the Counterparties list, you can see the new tenor end date in that column.
Why does it say ‘Beyond [date]’?
That date is the end date of the TOD Asset with the farthest future end date. This value will dynamically update whenever we activate an asset that can be traded on the TOD Markets platform.
If there is no tenor end date, this list view will display this default date value to help you determine the practical implications of non-tenor relationships.
The counterparties list shows a tenor date I didn’t enter.
The list will show your effective tenor date, so if your counterparty has entered a tenor date or you have entered a date later than that of your counterparty, that will show their date.
In the image of the list above, we can see that ‘Armstrong Group’ is Good until 15th December 2024, however when viewing that page, the date does not populate in the input field.
This indicates that the other party has input the tenor end date.
If that date looks wrong, you should contact the counterparty to discuss.
Does TOD Markets help with tenor end dates?
TOD Markets does not get involved with the credit relationships between market participants in any way, we will not broker credit arrangements or provide any endorsement or reference for credit-seeking activities. Nor will TOD Markets provide references or disclosures to credit-providing participants seeking information as it relates to a participant’s activity on the platform or other credit relationships.
All Market Participant information, including their credit relationships as they are represented to TOD Markets, is strictly confidential and is not disclosed to 3rd parties except those required by law enforcement or regulatory bodies.
This material has been prepared by TOD Markets Pty Ltd (ABN 32 675 980 604) (TOD Markets, 'us' or 'we').
TOD Markets is a corporate authorised representative (CAR 001311315) of 62 Consulting Pty Limited (ABN 88 664 809 303) (AFSL 548573) (62C).
The material is for general information only and is not an offer for the purchase or sale of any financial product or service. The material has been prepared for investors who qualify as wholesale clients under sections 761G of the Corporations Act or to any other person who is not required to be given a regulated disclosure document under the Corporations Act. The material is not intended to provide you with financial or tax advice and does not take into account your objectives, financial situation or needs. Although we believe that the material is correct, no warranty of accuracy, reliability or completeness is given, except for liability under statute which cannot be excluded. Please note that past performance may not be indicative of future performance and that no guarantee of performance, the return of capital or a particular rate of return is given by 62C, #548573, any of their related body corporates or any other person. To the maximum extent possible, 62C, #548573, their related body corporates or any other person do not accept any liability for any statement in this material.