Swapstream, the market-leading multilateral electronic trading platform for interest rate swaps (IRS) and subsidiary of Chicago Mercantile Exchange Holdings Inc, today announced that it will launch sPro, a new dealer-to-client swaps trading platform.
The platform is scheduled to be fully operational on 9 May, 2007, and will run alongside Swapstream’s groundbreaking sDealer system for the interdealer swaps market. Swapstream will also add functionality to include U.S. dollar and sterling-denominated swaps at the medium and long end of the IRS curve. This capability will be available on both the sPro and sDealer platforms and augments the existing euro and Swiss offerings.
sPro will be the first multi-dealer swaps platform to address the needs of the sophisticated professional trader, drawing on the proven technology and rich functionality of the existing Swapstream sDealer technology to deliver a platform tailored to client needs. sPro distinguishes itself from traditional single-dealer and RFQ-based trading platforms by offering greater execution flexibility and control. sPro offers:
- A variety of trading protocols from streaming prices to one- or two-way requests for streams, as well as the ability for clients to post and work their own orders;
- A range of products from outright interest rate swaps to future cross swaps, including calendar spreads and butterflies, which can be traded as a package or a combination of various prices via Swapstream’s innovative ‘implied’ functionality;
- Straight-through processing efficiencies, best execution, post-trade documentation and ‘thin-client’ architecture for effortless installation and maintenance at minimal cost.
Stephane Rio, CEO of Swapstream, said: “sPro builds on the success of the inter-dealer platform sDealer, extending its unique ability to integrate the entire interest rate trading curve electronically and offer best execution to users. With the global IRS market surpassing $207 trillion in 2006*, our new sterling- and US dollar-denominated capabilities position us well to capture a significant proportion of the market, thereby deepening liquidity.”
Swapstream developed its expanded capabilities and new features in close consultation with the Swapstream User Board, made up of Swapstream's market makers and major brokers. By working closely with market participants and platform users, Swapstream ensures its offering remains the sharpest and most effective in the industry.
*BIS November 2006: ‘OTC Derivatives market activity in the first half of 2006’.
Figures refer to 6 months ending June ‘06
About Swapstream
Swapstream, a wholly-owned subsidiary of the Chicago Mercantile Exchange Holdings Inc. (NYSE/Nasdaq: CME), is a service provider offering a global trading platform to the banks and brokers in the interest rate swaps (IRS) trading community. Swapstream's platforms, branded sDealer and sPro, bring to the medium and long term IRS market the only neutral electronic multilateral marketplace and trading system that improve the way business is done and reduce costs without altering the behavior of the market participants. sDealer and sPro currently handle medium- and long-term interest rate swaps (outright and futures-crossed) and swap spreads in EUR, Swiss Francs and Eonia, with sterling and U.S. dollars to follow.
