Swaps: Pre-trade Transparency & Post Trade workflows

Two posts grabbed my attention today, worth reading.

Pre-trade Transparency: Kevin McPartland from Tabb Forum tackles the subtleties of mandating pre-trade transparency for the more illiquid segments of the swaps market (or any other market for that matter) – liquidity and transparency in such markets tend to be inversely related, the more transparency the less ‘real liquidity’! (full article here – it’s free, but requires registration, strongly recommend subscribing to daily email digest)

Trade Workflows post Dodd Frank: Ben Wolkowitz, and Vinod Jain from Headstrong, provide an overview (with good diagrams) of the full trade workflow for Swaps that would apply under Dodd Frank, in both cleared products on a SEF, and non-cleared products voice or SDP ( link here it’s Bob’s guide, again free, but may require registration)

Single-Dealer Platforms: In depth coverage in e-Forex magazine

The July 2010 edition of e-FOREX magazine includes an excellent article “Special FX – building a new breed of trade execution platforms” – this touches on a whole variety of areas including multi-asset trading, increasing product complexity, connectivity and STP issues, whether lower latency is relevant or even achievable, the change in the relative use of multi-dealer and single-dealer platforms and the adoption of Web technologies and rich internet applications (RIAs) in single-dealer platforms.

All in eight pages – a really good read.

If you have a print copy of e-FOREX then turn to page 112 (page 114 of the digital edition and page 59 of the full PDF edition) and you’ll find that journalist Nicholas Pratt has encouraged Continue reading

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