Prebon Yamane Asia Pacific has launched py match, an online matching system for floating rate reset risk positions in a trader's swap portfolio.
The matching tool can be accessed via www.pymatch.com, and is currently available for pre-approved clients for the Australian dollar currency, with the Hong Kong dollar py match to be launched shortly.
Using technology from Kinetech Services, Py match automates the process of gathering data and matching positions at mid point prices for Forward Rate Agreement (FRA) and Single Period Swap (SPS) portfolios. By using py match on an Internet platform, Prebon Yamane allows its clients to access and use the tool whenever required, says the brokerage firm.
The online tool uses Secure Socket Layer (SSL) encryption to protect all communications with the Web site. Once logged into the password protected secure site, the yield curve will be displayed. The trader will then enter their orders and view successful matches when they buy and sell along the yield curve without taking an outright position.
The methodology for gathering prices and constructing yield curves is different for the AUD and HKD py match systems. For py match AUD, participating banks will provide rates for the early, middle and latter parts of the month. A yield curve will be formed based on the average points gathered from these rates. Matching sessions will take place fortnightly and traders can enter buy and sell orders for three-month FRAs. The banks will receive notification of successful matches.
Py match HKD runs a matching algorithm which uses a market accepted yield curve for matching positions. Matching sessions will take place fortnightly following the release of the HKD Hibor fixing rates. Traders can enter buy and sell orders for three-month FRAs and SPSs.