The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.

Electronic dealing's last frontier

When e-enthusiasm cooled, swap trading platforms hadn't got far. Now, though, old ideas are being revived and new ones mooted. ? Tom Marshall reports

ELECTRONIC TRADING PLATFORMS have quickly gained market share in bonds, forex, equities and futures. Interest rate derivative trading has proved much harder to move online. Banks and interdealer brokers have held out more successfully in interest rate derivatives than almost any other commoditized financial market against the transparency and smaller margins that would be a likely result of going electronic.

Amid the financial services industry's initial enthusiasm for all things "e", several electronic platforms were launched to handle interdealer swaps trading. They failed, however, to attract liquidity. In the dealer-to-client space, electronic trading has been even less successful. Platforms that were set up in the final stages of the dot com boom to let end users trade swaps directly didn't last long. Examples included CFOWeb, Swaps.com and TreasuryConnect.

Recently, though, old, half-forgotten initiatives are coming once more to the market's attention, and new platforms are being born.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree