Deutsche Bank, JPMorgan Chase and Goldman Sachs were chosen by the buy-side community as the dealers making the most effective use of the SwapsWire system to provide the best customer service in the 2007 SwapsWire Dealer Performance Survey.
The survey was designed to help banks identify where their use of SwapsWire is exceptional, as well as where additional effort will result in increased operational gains.
Robert Galione, head of Operations at European Credit Management said, "This is a great vehicle for the buy-side to provide feedback to the dealing community in a constructive way. We need all of our eligible deals to be confirmed via SwapsWire. This is the only system where we can get accurate and confirmed trade data for all of our deals in a timely fashion so that we can independently value our portfolio properly on T + 1."
SwapsWire allows the parties to a trade to affirm and legally confirm the transaction within minutes of execution. Dealers use SwapsWire to send real time electronic trade notifications for confirmation to their buy-side clients. Both counterparties can then process confirmed records straight through into risk and downstream systems.
The survey, run independently by Z/Yen Limited (part of McLagan Partners), a leading consultant in the financial services operations and processing arena, asked participants to rate banks across four performance metrics. Respondents were asked to consider the banks’ use of SwapsWire’s functionality and their implementation of the wide range of OTC products available on the system.
44 respondents took part in the survey, including asset managers, hedge fund and pension fund managers active in the derivatives markets globally.
Performance Rankings
Inputting All Eligible Deals
1. Deutsche Bank
2. Merrill Lynch (tied)
3. Royal Bank of Scotland (tied)
Fastest to Input Trades
1. JPMorgan Chase
2. Deutsche Bank
3. Goldman Sachs
Most Accurate
1. Goldman Sachs
2. Royal Bank of Scotland
3. Barclays Capital
Quickest to Address Trade Queries
1. Goldman Sachs
2. Royal Bank of Scotland (tied)
3. Deutsche Bank (tied)
Clients were keen to see increased dealer participation on SwapsWire for Interest Rate Options and Credit Derivatives, as well as complete adoption of SwapsWire for Novations amongst the dealer community. The most requested new products were basis and cross-currency swaps.
Chip Carver, ceo of SwapsWire commented "SwapsWire’s mandate is to bring efficiencies to the derivatives market by lowering operational risk and increasing scalability. This survey was designed to give the buy-side a forum to speak about what is important to them in terms of use of the system and product support. We are delighted with such useful results and plan to run the survey yearly to mark progress."
