The Swapstream trading application will be hosted in Deutsche Börse Group's high performance data centre in Frankfurt. The agreement also includes the build up and operation of a secure telecommunications network to connect Swapstream's customers to the platform as well as the set-up of a technical help desk for all Swapstream participants.
"The agreement between Xlaunch and Swapstream to provide the technical delivery and support for the Swapstream trading platform is a major milestone for Swapstream and for the development of OTC e-marketplaces. The partnership will deliver a ground-breaking, state-of-the-art real time trading system. Our combined efforts will bring vast improvements and savings to the way trading is currently transacted without changing the nature of the marketplace", noted Marcus Grubb, chief executive of Swapstream.
"The Swapstream and Xlaunch teams have been working closely together to conclude this agreement and during that time we have built up a great deal of mutual trust and respect. We believe that this agreement is opportune for Swapstream because we can tap into the vast experience of Deutsche Börse Group in operating highly available, high performance trading systems and vital financial IT infrastructure", said Phil Mc Connell (CTO) of Swapstream. "Our agreement with Swapstream is a significant step for Xlaunch and Deutsche Börse Group in its effort to leverage its core competencies to create and support emerging electronic OTC-markets", said Martin Reck, Chief Executive Officer of Xlaunch. "We strongly believe that the Swapstream marketplace offers superior technology and connectivity to the fast growing OTC derivatives market."
While there have been previous electronic platforms launched for the OTC derivatives market, none of them offered complete market neutrality combined with the advanced features of Swapstream's platform such as sophisticated permissioning, best price curves of direct and brokered prices, automatic real-time updates and futures-linkage. Swapstream is a platform that facilitates the trading of both key market participant groups, banks and brokers. As Swapstream is an independent service provider and not an exchange, bank or broker, its proposition is customer neutral. At no point in the trading process does Swapstream compete with customers who are using the Swapstream platform.
