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MTS and Wematch have partnered to offer web-based interdealer trading for interest rate swaps.
This solution, MTS Swaps by Wematch.live, aims to digitise voice trading in rates swaps, combining benefits of traditional voice trading and fully electronic execution platforms in providing additional flexibility to traders to do voice negotiation supported by digital workflow.
Traders will benefit from higher automation compared with traditional voice-based trading workflows, along with trade protection through pre-trade price and size controls, and electronic audit trails across the negotiation and trade lifecycle.
The service partners indicate that this facility will reduce trading costs through a transparent fee schedule offering per-trade or packaged (“all you can eat”) fee options.
This will be released with interdealer order-book trading functions and will offer additional negotiation choices to the electronic rates swap market such as meet-in-the-middle and upsize.
The two companies indicate that D2C request for quote (RFQ) trading facilities are likely to be added later this year.
MTS Swaps draws on Euronext MTS’ large European trading network, which supports average daily trading volume in advance of €160 billion, reinforced by Wematch’s expertise in delivering digital trading workflow.
This offers dealer negotiation and execution of package trades including Curve, Flies, Gadget, 3m/6m Tenor Basis, ESTR/Euribor Basis and Eurex/LCH basis.
Joseph Seroussi, Wematch CEO and founder, says: “Wematch is on a mission to empower
financial institutions through digitisation. Our cross-asset platform is designed to serve dealers with ease and efficiency.
“With nearly 1000 traders and sales at 90 financial institutions already utilising our highly-regarded securities finance platform, we are proud to be leading the change in bridging traditional and digital finance. We remain committed to delivering robust and scalable alternatives to voice trading, and are thrilled to announce the launch of MTS Swaps by Wematch.live in partnership with MTS.”
Angelo Proni, CEO of MTS, Euronext Group, comments: “There has been a major structural shift toward electronic trading in the interest rate swaps market since the introduction of new regulation in the wake of recent macroeconomic uncertainty.
“MTS Swaps combines MTS’s network, regulated markets, connectivity and rates franchise with Wematch’s flexible, agile technology to deliver an innovative solution that puts the trader front and centre.”
