07 April 2003
 

Partnership To Strengthen Electronic interest Rate Swaps Offering

London, 7th April, 2003 - Swapstream, the trading platform for swap and OTC (over-the-counter) derivatives, announced today it has reached an agreement to interface with SwapsWire, the integrated electronic processing network for derivatives. Deals executed on Swapstream by banks and brokers will be fed to the SwapsWire network for trade capture and confirmation.
The agreement means that banks that use the Swapstream execution platform will be able to take advantage of SwapsWire for straight-through trade processing. The inter-dealer broker community will also be able to use the Swapstream trading platform as an efficient means to access the SwapsWire processing network to confirm brokered swap transactions between SwapsWire members.
The Swapstream marketplace is expected to go live in Q2, 2003 and will be the first neutral trading platform for the world's swap and OTC derivatives trading and broking community. The platform will provide for electronic price discovery, price dissemination, order and trade management and negotiation for the interest rate derivatives markets.
SwapsWire, a consortium of 23 leading derivatives dealers, provides a network which allows brokers and dealers to confirm deals in real time between each other electronically. Deals are legally confirmed, removing the burdensome and time-consuming manual trade reconciliation process. The system is being used at twenty eight sites in Europe and the USA supporting derivatives in the major trading currencies.
"We are very enthusiastic about the potential of this new partnership with SwapsWire," said Marcus Grubb, Chief Executive of Swapstream. "The agreement is a major step forward in establishing a fully integrated electronic execution and processing infrastructure for the interest rate derivatives marketplace, a solution that is needed within the industry to bring greater efficiency and savings to market participants."
Chip Carver, CEO of SwapsWire commented "SwapsWire's ability to act as an interface between banks, interdealer brokers, and now electronic execution services is proving the value of a coordinated approach. Clients can look forward to a cheaper and easier environment for dealing as a result."

About Swapstream

Swapstream is an independent service provider offering a global trading platform to the world's swap and OTC (over-the-counter) derivatives trading and broking community. Swapstream brings to the swaps/derivatives market the first electronic, real-time, state-of-the-art marketplace and trading alternative that improves the way business is currently done and reduces costs without altering the behaviour of the market participants. Swapstream's system will begin with medium and long term interest rate swaps and swap spreads in two currencies, Euros and Swiss Francs. During 2003, Swapstream is expected to launch US$ swaps, short swaps and futures hedging. The company has already secured substantial liquidity commitments from brokers and banks prior to launch of the system in the second quarter of this year. The system is delivered to customers from Deutsche Borse facilities in Frankfurt over a secure private network. For more information on Swapstream, visit www.swapstream.net

About SwapsWire

SwapsWire is owned by a consortium of 21 leading derivatives dealers: Bank of America, The Bank of Tokyo-Mitsubishi UFJ Ltd., Barclays Bank, Bayerische Hypo-und Vereinsbank, BNP Paribas, Calyon, Citigroup, IXIS Corporate and Investment Bank, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC Bank Plc, J.P. Morgan Chase & Co., Lehman Brothers, Merrill Lynch, Mizuho Capital Markets, Morgan Stanley, The Royal Bank of Scotland, Societe Generale, Sumitomo Mitsui Banking Corporation, and UBS Investment Bank. For more information on SwapsWire, visit www.swapswire.com

Contacts:

Mitchell Prather
River Rouge Communications
Phone: +44 (0) 20 7283 7261

Email: mprather@riverrouge.co.uk

Marcus Grubb
Swapstream
Phone: +44 (0) 20 7930 2207
Email: marcus.grubb@swapstream.net

Henry Hunter
SwapsWire Ltd.
Phone: +44 (0) 20 7868 2451
Email: henry.hunter@swapswire.com

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