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Derivatives

Electronic Swaps Platform Ready To Go, Finally

SwapsWire, an electronic derivatives trading platform owned by 23 dealers, including Morgan Stanley,Credit Suisse First Boston andMerrill Lynch, is set to start brokering over-the-counter derivatives trades next week, according to interest-rate derivatives professionals. Henry Hunter, chief marketing officer at SwapsWire in London, said it has taken since the beginning of last year to develop the platform. Still, "in the realm of complex technology projects it's been a relatively short" gestation period, he added. He said the launch is imminent, but declined to give an exact date. Hunter said SwapsWire will help interest-rate derivatives dealers become more efficient. "We're not looking to significantly change the way business is done, we're looking to make it cheaper and less risky," he said, declining further comment.

Interest-rate derivatives pros said the platform will not have an immediate impact on the market and it remains to be seen whether it will be significant in the long-term. "It will probably just be used for confirmation because it is still easier to negotiate trades over the phone," said one. However, if successful, he said the project could make trading easier and lead to increased flows. SwapsWire was formed approximately two years ago.     

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