Wematch, a web-based matching and negotiation platform, has hosted a EUREX/LCH basis swap trade on its electronic trading platform, carried out between Societe Generale (SG) and Landesbank Baden-Württemberg (LBBW).
The trading platform offers the ability for EUREX/LCH basis swaps to be negotiated on a purely electronic basis, making this trade the first of its kind to be completed in the derivatives market, the firm says.
Wematch’s platform enables traders to match, negotiate and manage trades, bringing the audit and control benefits of electronic tools to trading, delivered as web-based software-as-a-service technology. The result is significantly lower costs and enhanced orderly execution of processes for traders, enabling seamless settlement, the firm says.
The EUREX/LCH basis swap tool enables traders to easily manage their clearing house risk. As such, the new functionality gives complete control over orders and confidentiality and at a lower cost than voice-based or hybrid trading pathways, the firm claims.
Joseph Seroussi, co-founder and co-CEO at Wematch, says: “Wematch is delighted to announce the first electronically negotiated EUREX/LCH basis trade between LBBW Stuttgart and Societe Generale. At Wematch, we pride ourselves on being directed by our clients in growth of the platform. Since the launch of Wematch, six months ago, we have delivered 3-month/6-month basis curve and flies, Eonia/Euribor basis, gadget swaps and now Eurex/LCH basis. Wematch has seen a rapid rise in the number of banks on the platform, with 18 currently onboarded. Wematch is a non-hybrid, pure electronic negotiating platform, allowing traders complete control over their prices in the market at a fraction of the cost of conventional IDBs.”
Dr Thilo Rossberg, head of FICC trading at LBBW, says: “At LBBW we are constantly looking towards technology solutions to find innovative and cost-effective means to execute our trading and risk reduction strategies in the marketplace. We welcome Wematch’s introduction of EUREX/LCH basis swaps to their product suite. This allows our traders to economically manage our clearing house risk via an electronic platform.”
Gareth Hughes, UK head of fixed income and currencies at SG, adds: “We are delighted to be partnering with Wematch on this first of its kind swap trade, which is a further illustration of the successful collaboration between our two companies. The inclusion of the EUREX/LCH basis execution capability is one of many examples where they demonstrate their innovation in the derivatives markets. At Societe Generale, we are constantly striving to be best-in-class in execution proficiency, enabling us to offer our clients an enhanced service and meet their needs.”