Wematch hosts first-of-its-kind electronic EUREX/LCH basis swap trade
18 February 2020 London
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Wematch is seeking to mitigate clients' clearinghouse risk concerns through the launch of the industry’s first electronic EUREX/LCH basis swap trading facility.
The first trade was recently carried out between Societe Generale and Landesbank Baden-Württemberg (LBBW). Several more trades have been recorded since then between other counterparts.
According to the web-based matching and negotiation facility, no other platform currently offers the ability for EUREX/LCH basis swaps to be negotiated on a purely electronic basis.
The new inter-clearinghouse tool enables traders to easily manage their clearinghouse risk gives clients “complete control over orders and confidentiality and at a significantly lower cost than voice-based or hybrid trading pathways,” says Wematch.
Wematch’s broader offering, which includes a matching protocol for exchange-traded funds launched last month and a euro interest rate swaps tool, also brings audit and control benefits of electronic tools to trading, delivered as web-based software-as-a-service technology.
It has also grown its user base and onboarded 18 banks so far.
“At LBBW we are constantly looking towards technology solutions to find innovative and cost-effective means to execute our trading and risk reduction strategies in the marketplace, says Thilo Rossberg, head of fixed income, currencies and commodities trading at LBBW. “This allows our traders to economically manage our clearinghouse risk via an electronic platform.”
Gareth Hughes, UK head of fixed income and currencies at Societe Generale, adds: “The inclusion of the EUREX/LCH basis execution capability is one of many examples where they demonstrate their innovation in the derivatives markets.
“At Societe Generale we are constantly striving to be best-in-class in execution proficiency, enabling us to offer our clients an enhanced service and meet their needs.”
The first trade was recently carried out between Societe Generale and Landesbank Baden-Württemberg (LBBW). Several more trades have been recorded since then between other counterparts.
According to the web-based matching and negotiation facility, no other platform currently offers the ability for EUREX/LCH basis swaps to be negotiated on a purely electronic basis.
The new inter-clearinghouse tool enables traders to easily manage their clearinghouse risk gives clients “complete control over orders and confidentiality and at a significantly lower cost than voice-based or hybrid trading pathways,” says Wematch.
Wematch’s broader offering, which includes a matching protocol for exchange-traded funds launched last month and a euro interest rate swaps tool, also brings audit and control benefits of electronic tools to trading, delivered as web-based software-as-a-service technology.
It has also grown its user base and onboarded 18 banks so far.
“At LBBW we are constantly looking towards technology solutions to find innovative and cost-effective means to execute our trading and risk reduction strategies in the marketplace, says Thilo Rossberg, head of fixed income, currencies and commodities trading at LBBW. “This allows our traders to economically manage our clearinghouse risk via an electronic platform.”
Gareth Hughes, UK head of fixed income and currencies at Societe Generale, adds: “The inclusion of the EUREX/LCH basis execution capability is one of many examples where they demonstrate their innovation in the derivatives markets.
“At Societe Generale we are constantly striving to be best-in-class in execution proficiency, enabling us to offer our clients an enhanced service and meet their needs.”
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