Swapstream to Expand Electronic Trading Into Short-Term Interest Rate Swaps

Swapstream, the London-based multilateral electronic trading platform for interest rate swaps (IRS), will expand its marketplace in mid-February with the launch of Eonia (Euro Overnight Index Average) swaps trading facility.The new facility will offer banks and brokers the ability to trade on the short end of the IRS curve, realizing the efficiencies of Swapstream users who currently trade on the medium to long end of the IRS curve, according to the release.

The Eonia market averages approximately 40 billion Euros in daily volume with only a very small percentage of trading conducted electronically, said the release.

Swapstream, a wholly owned subsidiary of the Chicago Mercantile Exchange (CME), is also rebranding its third-generation platform as sDealer, offering a new "click and trade" protocol. Users will continue to have the option to use the current "click and accept" trading protocol.

sDealer also offers credit permissioning combined with these trading protocols, enabling traders "to choose who and with whom they do business at a fraction of the cost of inter-dealer voice brokers," stated the release. Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio