Cantor Fitzgerald and GFI Group are using SwapsWire for electronic trade notification for OTC equity derivative transactions in North America.
Cantor Fitzgerald is live with SwapsWire globally for equity derivatives in their Hong Kong, London, Paris, Zurich, and New York offices. GFI is live with equities and interest rate derivatives in Paris, London and New York.
SwapsWire aims to enable all parties to a trade to affirm and legally confirm the transaction within minutes of execution. Inter-dealer brokers use SwapsWire to send real time electronic notification to dealers, providing a standard STP mechanism integrated with legal confirmation.
"SwapsWire has been invaluable for us and our customers, simplifying the confirmation process so we can concentrate on making the trade," says ason Bodner, Cantor Fitzgerald's Director US Equity Derivatives. "SwapsWire's US release complements our global OTC trade flow in equity derivatives. The efficiency achieved by using the service will further help us increase our trading activity and volume in the OTC markets around the world."
Chris Burbidge, GFI's Strategic Program Manager for North America, ads that the firm is pleased to be able to offer equity derivative customers the opportunity to receive trade data through the SwapsWire network. "SwapsWire represents another viable solution for our clients to realize the benefits of straight through processing and is consistent with GFI's strategy of integrating best-of-breed services where possible," he says.
SwapsWire says that, because its trade representations are complete trade records delivered with speed and accuracy, misunderstandings are caught immediately at execution. "Dealing banks straight-through-process trades directly into their risk systems eliminating booking errors and greatly reducing processing costs," says the firm in a statement. "SwapsWire also improves market efficiency by standardizing and clarifying complete trade terms, saving the broker from negotiating each term with the counterparties on each deal."
Chip Carver, SwapsWire's CEO, says SwapsWire now has 37 broker-dealers active on SwapsWire. "We are pleased to be leading the way in the OTC equity derivative market, where there are already 21 banks and 29 interdealer brokers using the service for interbank and bank to client business," he says.
In May 2007, 18 broker-dealers updated regulators on their progress to improve the efficiency of the equity derivatives market. They committed to process at least 70% of eligible transactions between major dealers through electronic platforms during September and October 2007. They have committed to increasing this to 80% in November. In addition, the dealers have committed to use all applicable new products on the platforms within 60 days of the product launch. Many dealers are already confirming equity derivative trades with buy-side clients on SwapsWire. Buy-side clients enjoy use of SwapsWire free of charge.