Swapstream, the trading platform for swap and OTC derivatives, has signed an agreement with Xlaunch by which the Deutsche Borse subsidiary becomes Swapstream’s primary supplier of managed technology and network services.
The Swapstream marketplace, which is expected to go live in the second quarter of this year, aims to become the first neutral trading platform for the swap and OTC (over-the-counter) derivatives trading and broking community. The platform will provide for electronic price discovery, price dissemination, order and trade management and negotiation for the interest rate derivatives markets.
The Swapstream trading application will be hosted in Deutsche Brse Group’s high performance data centre in Frankfurt. The agreement also includes the build up and operation of a secure telecommunications network to connect Swapstream’s customers to the platform as well as the set-up of a technical help desk for all Swapstream participants.
“The agreement between Xlaunch and Swapstream to provide the technical delivery and support for the Swapstream trading platform is a major milestone for Swapstream and for the development of OTC e-marketplaces. The partnership will deliver a ground-breaking, state-of-the-art real time trading system. Our combined efforts will bring vast improvements and savings to the way trading is currently transacted without changing the nature of the marketplace,” says Marcus Grubb, chief executive of Swapstream.
“The Swapstream and Xlaunch teams have been working closely together to conclude this agreement and during that time we have built up a great deal of mutual trust and respect. We believe that this agreement is opportune for Swapstream because we can tap into the vast experience of Deutsche Brse Group in operating highly available, high performance trading systems and vital financial IT infrastructure,” adds Phil Mc Connell, chief technology officer of Swapstream.
“Our agreement with Swapstream is a significant step for Xlaunch and Deutsche Brse Group in its effort to leverage its core competencies to create and support emerging electronic OTC-markets,” said Martin Reck, chief executive officer of Xlaunch. “We strongly believe that the Swapstream marketplace offers superior technology and connectivity to the fast growing OTC derivatives market.”