Straight-Through Processing is Coming to Swaps (Securities Industry News)


On March 31, Deutsche Bank electronically traded and cleared an off-exchange interest-rate swap on behalf of a hedge fund client in what it termed “one seamless move.”

The development may mark the first time an over-the-counter interest-rate swap has been handled electronically from order to clearance, for an institutional buyer.

The trade was executed on Deutsche’s proprietary, single-dealer electronic trading platform, called Autobahn. The transaction was confirmed over Markit Wire, the confirmation-affirmation “matching” service of MarkitServ.

Read more at Securities Industry News

Two common misconceptions about Single-Dealer Platforms


One of the things that I’ve often been asked when talking to prospective customers, journalists or analysts about single-dealer platforms (SDPs) is, “Won’t using an SDP conflict with a buy-side client’s best execution requirements?”

This question highlights two commonly held, but erroneous, beliefs – first that a multi-dealer platform will always offer the best price, and that best price and best execution are the same thing. Let’s deal with these one at a time.

First: “Being able to see multiple prices (on a multi-dealer platform) will give a trader the best price at which to trade.”

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