12 June 2006
 

SwapsWire announced today that three dealers have used SwapsWire to backload a sample of historical interest rate swaps to the SwapsWire trade archive, allowing SwapsWire to automatically send the transaction data from its central trade archive to LCH Clearnet’s SwapClear service.

SwapsWire provides a central matching utility to allow users to upload and match a portfolio of existing transactions. Once matched, SwapsWire creates a single transaction record with a unique identifier. The transaction data can be sent via an automated link to LCH.Clearnet, which registers the transactions and becomes the central counterparty to the trade. Integrated research tools allow users to quickly and easily resolve any unmatched or mismatched trades.
Use of the combined SwapsWire/SwapClear facility allows dealers to book, document, clear and settle trades fully electronically, greatly reducing the workload related to supporting such transactions through their lifecycle.

The three dealers (ABN Amro, JPMorgan, and UBS) have initially piloted the facility using a relatively small number of trades and they intend to backload substantially larger portfolios of historic trades. They will be followed by the other participating dealers who will use SwapsWire as the primary interface to SwapClear for historic portfolios. Fourteen of the eighteen dealers who are using SwapClear for intra-day clearing are already using SwapsWire to send trades to LCH.Clearnet.

Chip Carver, SwapsWire’s CEO, said, “This successful pilot of the backloading facility for clearing demonstrates its effectiveness and versatility. Dealers and buyside clients can use backloading of older trades for other purposes, for example reducing the backlog of outstanding confirmations and facilitating other trade life cycle events. These types of tools will make a major contribution to eliminating the processing delays which have recently been a focus of regulatory concern."”

Media Contacts:
SwapsWire
Henry Hunter +44 (0)20 7868 2451
Amy Mihalakis +44 (0)7970 050 828

About SwapsWire

Since 2002, the SwapsWire system has been automating legal confirmation, trade capture, and broker confirmation for multiple OTC derivatives products including interest rate swaps, forward rate agreements, overnight index swaps, caps, floors, swaptions, credit default swaps, equity options and variance swaps. Today hundreds of sell-side, buy-side, and inter-dealer broker sites in Europe, Asia and the USA use the system. SwapsWire was winner of the Risk Awards 2005, Technology Platform.

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

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