MTS, the European electronic fixed income platform owned by Euronext, and Wematch, the tech firm that provides buy- and sell-side firms’ dealing workflow systems, have joined forces to launch MTS Swaps by Wematch.live, a web-based interdealer trading venue for the interest rate swap (IRS) market.
MTS Swaps, which can be accessed through a web browser via Wematch.live, digitises voice trading workflows, and is designed to bridge the gap between legacy voice trading models and pure electronic alternatives by offering negotiating functionalities.
By leveraging MTS Swaps, dealers can access features not available via traditional voice-based workflows including potentially increased efficiency and productivity through automation; management of conduct risk through electronic audit trails, elimination of chat from workflows; and trade protection through pre-trade price and size controls and auto-protect features.
The solution could also reduce costs associated with IRS trading through its fee schedule and a choice of ‘all-you-can-eat’ or ‘pay-per-trade’ fees.
MTS Swaps supports digital negotiation and execution of package transactions including Gadget, Curve, Flies, 3m/6m Tenor Basis, ESTR/EURIBOR Basis, and EUREX/LCH Basis. Launching with interdealer order-book functionality, dealer-to-client request for quote (RFQ) will follow later this year. MTS Swaps can be used by dealers of all sizes via negotiating functionalities, such as Meet-in-the-Middle and Upsize.
The solution uses MTS’s network across Europe that trade an average daily volume of more than €160 billion, and Wematch’s platform. MTS’s regulated markets and multilateral trading facilities (MTFs) connect to relevant post-trade systems, including central clearing houses.
Angelo Proni, CEO of MTS, Euronext Group, said, “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.”
Julian Baker, co-head of Euro linear trading, JP Morgan said, “We welcome new avenues that boost access to liquidity and increase workflow efficiency in the dealer-to-dealer market.”
Anna Lucarelli, European head of corporate and public sector rates sales ex DACH at Deutsche Bank, said, “We see clear value in this new proposition from MTS and Wematch, with the opportunity to accelerate dealing workflows and help firms to increase productivity and reduce costs.”
©Markets Media Europe 2023
