Inter dealer broker Prebon Marshall Yamane is to use the Swapstream platform as its electronic trading arm for dealing in euro and US dollar swaps.
The Swapstream trading system - developed by Swiss broker dealer Gottex - is currently in the final stages of testing.
Marcus Grubb, chief executive of Swapstream welcomed Prebon's commitment to the system: "The presence now of two major swaps brokers and several market making banks on Swapstream is likely to produce the tightest available spreads on any electronic swaps dealing and broking system."
Prebon Marshall Yamane says it will use the system to broker swap transactions initially in medium term € swaps and swap spreads and later in medium term US$ swaps and short € swaps.
Tony Verrier, CEO of Prebon Marshall Yamane says: "Prebon have long recognised the role that electronic platforms will play as part of the hybrid broking market of voice and screen. The combination of our voice broking skills and the Swapstream platform will create a liquidity pool to establish the use of electronic trading in this market."
Swapstream is curently being primed to launch US$ swaps, short swaps and futures hedging. The system is delivered to customers from Deutsche Bourse facilities in Frankfurt over a secure private network.