Swapstream, the only operational multilateral electronic trading platform for medium and long term interest rate swaps (IRS), announced today that it has added futures crossing functionality to its market leading platform.
Through a link with Eurex, the world's leading futures and options market for euro-denominated derivative instruments, Swapstream is the first platform to introduce futures crossing in the electronic IRS industry. This functionality will allow its members to execute IRS swap orders with a fully automated futures cross (Bund, Bobl or Schatz).
"This fully automatic futures crossing functionality marks a significant step forward for the swaps industry, advancing us from the current manual process involving multiple parties," said Stephane Rio, CEO at Swapstream.
"This falls into Swapstream’s commitment to delivering the very best technology; by incorporating futures crossing capabilities into the platform, we added another facet to our successful enhancement of the voice trading environment with relevant automated resources."
Swapstream’s platform serves to address a timely market need, as recognised by industry experts. "The market is now primarily trading swaps with a future cross, with this activity representing nearly two-thirds of the dealer to dealer medium and long term IRS market," said Jan Kloosterboer, Head of Euro Interest Rate Swaps at ABN AMRO. "Approaches such as Swapstream’s help to remove outright interest rate risk and make electronic trading much easier and more efficient."