Swapstream, the trading platform for swap and OTC (over-the-counter) derivatives, announced today it has reached an agreement to interface with SwapsWire, the electronic processing network for derivatives. Deals executed on Swapstream by banks and brokers will be fed to the SwapsWire network for trade capture and confirmation.
The agreement means that banks that use the Swapstream execution platform will be able to take advantage of SwapsWire for straight-through trade processing. The inter-dealer broker community will also be able to use the Swapstream trading platform as an efficient means to access the SwapsWire processing network to confirm brokered swap transactions between SwapsWire members.
The Swapstream marketplace is expected to go live in Q2, 2003 and claims it will be the first neutral trading platform for the world’s swap and OTC derivatives trading and broking community. The platform aims to provide for electronic price discovery, price dissemination, order and trade management and negotiation for the interest rate derivatives markets.
SwapsWire, a consortium of 23 derivatives dealers, provides a network which allows brokers and dealers to confirm deals in real time between each other electronically. Deals are legally confirmed, removing the burdensome and, time-consuming manual trade reconciliation process. The system is being used at twenty eight sites in Europe and the USA supporting derivatives in the major trading currencies.
“We are very enthusiastic about the potential of this new partnership with SwapsWire,” says Marcus Grubb, Chief Executive of Swapstream. “The agreement is a major step forward in establishing a fully integrated electronic execution and processing infrastructure for the interest rate derivatives marketplace, a solution that is needed within the industry to bring greater efficiency and savings to market participants.”
Chip Carver, CEO of SwapsWire added: “SwapsWire’s ability to act as an interface between banks, interdealer brokers, and now electronic execution services is proving the value of a coordinated approach. Clients can look forward to a cheaper and easier environment for dealing as a result.”