GFI Group (NYSE: “GFIG”) a leading provider of wholesale brokerage, clearing services, electronic execution and trading support products for global financial markets announced today it has conducted the first fully electronic Mexican Peso UDI/Libor Interest Rate Swap.
An UDI Swap is an interest rate swap where one leg of the trade is based on a Mexican Peso fixed rate set by reference to the UDI index, which is exchanged for a US Dollar floating interest rate (USD 6 month Libor).The UDI (Unidades de Inversion) is the Mexican inflation unit; published daily, based on the price changes in the Mexican economy set by the Central Bank.
Matching of UDI Interest Rate Swaps follows the success of GFI’s first electronic matching of Mexican TIIE IRS conducted in 2010.
Ron Levi, coo GFI Group said: “Mexico is a very important market for us. We are very pleased to be able to offer our clients in this market choice in their method of execution. The roll out of this new product follows the market’s embracing of our electronic matching sessions in US$ Interest Rate Options, Mexican TIIE IRS and of non deliverable forwards in Chile and Argentina.”
Mr. Levi added: “Technology is an integral component of the GFI hybrid business model where technology and brokers work together to provide clients with top quality service. Our investment in technology since our inception has allowed us to be at the forefront of providing innovative solutions to client demands.”
Matching is a process run on various GFI electronic trading platforms which allows traders to anonymously contribute and trade at mid-market levels on specific contracts during periodic sessions. Sessions are carried out during set times in the day and have short durations, approximately 5 minutes. GFI Matching sessions create concentrated and deep liquidity pools that allow large volume trades to be transacted at mid market levels.
