Swapstream adds butterflies to marketplace

In the Swapstream IRS market place, spreads and butterflies interact with one another to create implied liquidity. The new trading functionality goes beyond the current market offering of standard combinations by allowing Swapstream clients to create their own user defined spreads and butterflies on demand.

This unique client defined Swapstream capability provides clients with the best price – a price that would not even exist under the current market practice of packaged offerings and limited templates. Swapstream is able to deliver the best price by automatically checking all possible combination of orders, real or implied, in a much faster environment than that of traditional voice brokering.

The Swapstream market place for butterflies and the resulting increase in the depth of implied liquidity closely mirrors existing market trading behaviour by allowing platform clients to create their own private market place, very similar to the voice trading market. The unique client defined butterflies capability follows the principles of Swaptream's distinctive electronic permissioning capabilities, which allows clients to designate the firms to which they wish to trade and offer prices.

"We are very pleased with the addition of butterflies to the Swapstream market place," said Stephane Rio, CEO of Swapstream. "Increased liquidity, better prices and market friendly functionality are major priorities for the electronic IRS trading community. The launch of our unique client defined butterflies demonstrates how Swapstream continues to lead the market by meeting these needs through the strategic use of leading edge technology."