ICAP, the world's premier interdealer broker, announced today the completion of the first ever non deliverable FX swap trade on the EBS platform. The trade was completed on 13 June 2011 between two large NDF market participant banks based in Asia.
The Non-Deliverable FX Swaps (NDS) product on EBS is a new electronically traded instrument which was launched this week and is available in Asian and LatAm Deliverable FX Swaps (ex-Brazil). The product was designed to add ease and accuracy to a trader's FX positions management. With the introduction of NDS on EBS, FX traders are for the first time able to electronically trade two fixing swaps against one month:
• TOD: dealt swap points are applied to that day's fixing/valuation rate for an all in outright rate.
• TOM: dealt swap points are applied to the reference rate. The swap near leg rate is the reference rate, the far leg is the reference rate and dealt points.
David Rutter, CEO, ICAP Electronic Broking said:
"The launch of NDS on EBS highlights ICAP's continued commitment to delivering innovative and market leading solutions to customers by increasing the efficiency of flow and position management. The addition of Non-Deliverable FX Swaps to the EBS platform along with the existing spot, precious metals and NDF outright products further strengthens the EBS offering for traders in both established and emerging growth markets. By introducing the transparency and efficiency of electronic trading to the non-deliverable swaps market, NDS on EBS seeks also to support the changing regulatory landscape in OTC derivatives markets."