SwapsWire announced today that ICAP Corporates LLC, Linkbrokers Derivatives Corp. (Linkbrokers), and TFS (TFS Derivatives Corp) are now live with North American Equity derivatives on its service. The latest addition completes the global rollout for all three brokers for Equity Derivatives. The three Brokerage houses are now using SwapsWire for electronic trade notification and confirmations for OTC equity derivative transactions in Asia, Europe and North America.
SwapsWire allows all parties to a trade to affirm and legally confirm the transaction within minutes of execution. Inter-dealer brokers use SwapsWire to send real time electronic notification to dealers, providing a generic STP mechanism integrated with legal confirmation.
Larry Rosenshein, director of TFS Derivatives Corp, said, "Extending the use of SwapsWire’s platform across our broker desks will greatly increase efficiency for us and our clients. SwapsWire has proven to be successful on our interest rate and our equity desks elsewhere, so we are pleased to add this service to our North American equity derivatives operations."
Because SwapsWire confirms full trade details with such speed and accuracy, execution misunderstandings and booking errors are caught immediately at source, and the cost of processing is reduced. SwapsWire also improves market efficiency by standardizing and clarifying complete trade terms, saving the Broker from negotiating each term with the counterparties on each deal.
David Casterton, managing director of ICAP Europe, said, "The implementation of SwapsWire across our interest rate derivative desks in Europe has successfully reduced potential errors and contributed greatly to the improved efficiency of these markets. It was a natural step to implement SwapsWire for North American equity derivatives."
Chip Carver, ceo of SwapsWire, said, "The launch of Equity Options and Index Variance Swap confirmations in North America will help globalize operations in the OTC market for many dealers, brokers, money and fund managers worldwide. Statistics show that dealer-to-dealer trades are confirmed on trade-date 99% of the time using SwapsWire as their primary electronic confirmations platform. With ICAP, Linkbrokers, and TFS as major broker clients utilizing the platform, the benefits of our business model will become even more apparent in the Equity space."
18 Dealers recently updated regulators on their efforts to improve the efficiency of the equity derivatives market. Dealers committed to process at least 55% of eligible transactions between major dealers through electronic platforms during June 2007. In addition to focusing on the inter-dealer market, dealers committed to prepare a plan that outlines a broader client on-boarding strategy by July 31st, 2007. Many dealers are already confirming equity derivative trades with buy-side clients on SwapsWire today, with the number of clients expected to grow rapidly. Buy-side clients enjoy use of SwapsWire free of charge.