PLUS Derivatives Exchange (“PLUS-DX”) today announces that Vantage Capital Markets LLP (“VCM”) has signed as its first trading member.
VCM is an independent voice and electronic broker-dealer offering comprehensive coverage of European cash and derivatives markets. VCM will offer Swap Index Contracts (“SICs”) within its fixed income derivatives coverage, across its broad spectrum of clients.
The SIC is an open-ended Index contract that provides exposure to full fixed-for-floating interest rate swaps via the FTSE Medium Term Interest Rate Swap (“MTIRS”) Index Series, covering initially the USD curve.
Trading in the SICs are spot trades on the FTSE MTIRS Index series and are centrally cleared through LCH.Clearnet. The rules of the index series are fully transparent and each index represents a constant maturity swap. Each currency index series comprises 45 indices that contain 29 plain vanilla swaps and 16 investment strategies with 10 spreads and six butterfly trades.
Cyril Théret, ceo of PLUS Markets Group plc, said: “We are delighted to have confirmed Vantage Capital Markets as our first trading member of PLUS-DX. Since receiving authorisation for PLUS-DX from the Financial Services Authority in July, our focus has been on signing new members to allow trading to commence in this innovative new Swap based product. We are now working closely with a number of other prospective members and expect to make further announcements as we secure new participants and trading starts.”
Rob Hampel, capital partner of Vantage Capital Markets LLP said: “We believe that the Swap Index Contract is an innovative product responding precisely to the needs of the market. It is simple, accessible and transparent, allowing participants to manage their interest rate exposure and risk without having to enter into complex interest rate swap agreements. We have had a very positive response from our clients, and are working closely with them and our technology partner, Reuters, to bring this exciting new product to market.”