First Electronic Trade for MAC Occurs on Bloomberg's SEF

Goldman Sachs and a large asset manager have completed the first electronic trade for a Market Agreed Coupon (MAC) swap contract, which was executed on Bloomberg's swap exchange facility (SEF).
By Jake Safane(2147484770)
Goldman Sachs and a large asset manager have completed the first electronic trade for a Market Agreed Coupon (MAC) swap contract, which was executed on Bloomberg’s swap exchange facility (SEF).

The International Swaps and Derivatives Association (ISDA) along with Securities Industry and Financial Markets Association (SIFMA) created the MAC contract structure in April “that would promote liquidity and enhance transparency in IRS (interest rate swap) trading,” SIFMA said. MAC swap contracts have a standardized range of pre-set terms including start and end dates, coupons and maturities.

“Today there is a critical need for fungible, standardized contracts as the derivatives market migrates to electronic platforms,” says Ben Macdonald, Bloomberg’s global head of product and president of Bloomberg SEF. “By providing the ability to trade these contracts electronically, Bloomberg will continue to help our clients transition to a more centralized marketplace.”

“We are pleased to work with Bloomberg and to play a role in the ongoing evolution of the market structure for interest rate products,” says Kostas Pantazopoulos, global head of interest rate products at Goldman Sachs. “Goldman Sachs values its role as a market maker in MAC swaps, as well as other interest rate swaps that fit the specific needs of our customers.”

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