23 October 2017
visit www.avoka.com

CME buys Swapstream for $15m

05 July 2006  |  9791 views  |  0 CME buys Swapstream for $15m

The Chicago Mercantile Exchange (CME) has acquired Swapstream, the London-based multilateral electronic trading platform for interest rate swaps, for around $15 million.

CME says the acquisition will expand its presence in the over-the-counter (OTC) interest rate derivatives market.

Under the deal CME is paying $6 million and assuming $9 million in outstanding debt to acquire the Swapstream business.

Launched in 2003 by Swiss broker Gottex, Swapstream is a neutral, inter-dealer platform that currently supports electronic trading of Euro and Swiss Franc denominated medium-term and long-term interest rate swaps. USD and GBP swaps are expected to launch on the platform soon.

The system enables dealers to interact with one or more banks or brokers to build their own marketplace and distribute their liquidity. The platform also features a permission-based system that allows market participants to publish customised prices and pricing curves based on both credit and counterparty considerations.

Swapstream is delivered to customers over a secure private network from Deutsche Börse facilities in Frankfurt.

Craig Donohue, CME chief executive officer, says the acquisition "diversifies our global interest rate business, brings us into the fast growing $164 trillion in notional value OTC interest rate swaps market and moves us further out the interest rate curve in terms of our product offering".

Donohue says the exchange will also explore potential synergies between Swapstream and the CME Clearing 360 offering, which allows OTC market participants to 'substitute' an interest rate swap for CME Eurodollar futures.

Following the acquisition, Swapstream will operate as a wholly-owned subsidiary of CME and will remain based in London.

Swapstream chief executive officer Stephane Rio will continue to lead the organisation with Andre Keijsers and Florentin Bosse remaining as chief financial officer and chief technology officer respectively.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Swapstream names Florentin Bosse CTO

Swapstream names Florentin Bosse CTO

19 January 2005  |  3113 views  |  0 comments
Swapstream names Stephane Rio as CEO

Swapstream names Stephane Rio as CEO

13 October 2004  |  4474 views  |  0 comments
Prebon joins Swapstream

Prebon joins Swapstream

08 July 2003  |  3774 views  |  0 comments
Swapstream forges STP interface with SwapsWire

Swapstream forges STP interface with SwapsWire

07 April 2003  |  3758 views  |  0 comments
Deutsche Börse subsidiary Xlaunch to power Swapstream launch

Deutsche Börse subsidiary Xlaunch to power Swapstream launch

19 February 2003  |  3442 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
visit www.atos.net visit www.innotribe.com

Top topics

Most viewed Most shared
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
19008 views comments | 26 tweets | 38 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
15069 views comments | 23 tweets | 32 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
10923 views comments | 12 tweets | 23 linkedin
Eight banks form joint venture to launch blockchain trade platformEight banks form joint venture to launch b...
8952 views comments | 14 tweets | 28 linkedin

Featured job

Find your next job