SwapsWire, an electronic trading infrastructure for interest rate derivatives, has added 14 more derivatives houses to it list, bringing the total number of dealers to 24.
The initiative has yet to launch – tests are expected among the founding institutions in the first quarter of 2001 – but Andrew Brown, CEO, hopes that the inclusion of the new participants will lead to SwapsWire becoming the industry standard for electronic trading within the derivative community. “The new members give SwapsWire critical mass and significant acceptance among the global industry players,” he says.
This latest raft of players – Bank of America, Bank of Tokyo-Mitsubishi, Barclays Bank, Bayerische Hypo-und Vereinsbank, CDC Marchés, Crédit Agricole Indosuez, Crédit Lyonnais, Fuji Capital Markets (a subsidiary of Fuji Bank), HSBC, Lehman Brothers, Royal Bank of Scotland, Sanwa Bank, Société Générale and Sumitomo Bank – join with the founders of the initiative announced earlier this year – BNP Paribas, Chase Manhattan, Citigroup, Credit Suisse First Boston, JP Morgan, Goldman Sachs, Merrill Lynch, Morgan Stanley Dean Witter and UBS Warburg.
The network also confirmed the final running of its management team: Bill Stenning is chief operating officer, Henry Hunter is chief marketing officer, Mike Davis is chief technology officer and Una Ni Dhonaill is chief financial officer.
SwapsWire will enable participants to trade benchmark swaps and other interest rate derivatives online, combining what it says will be the efficiencies of electronic dealing with the benefits of OTC private negotiation. Participants will also be able to view indicative or live prices, indications of interest and full details of executed transactions in a standard format, and to transfer deal information between counterparties in a standard format.
Hunter says that following the live tests with the founding members, SwapsWire will be distributed to other clients “very quickly”, however, he says it will depend on whether any “issues arise during the test period”.
Hunter declines to name the platform’s software suppliers, but will confirm that it is a combination of internally developed systems and externally developed software.