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CQS Leads Buy-Side Take-Up of OTC Equity Options on SwapsWire

SwapsWire announced today that buy-side clients have started to confirm equity options electronically using its service. Twelve dealers launched the equity options service that focuses on interbank trades last year. The dealers have recently started to roll the service out to their buy-side clients.

CQS Management (CQS) – a leading London based Hedge Fund - was among the first buy-side clients to use SwapsWire to confirm an equity option electronically. They were the first fund manager to confirm interest rate swaps and credit default swaps on SwapsWire after the service was extended to buy-side clients in mid-2004. CQS also uses SwapsWire’s integrated PBWire service to manage OTC derivative give-ups with two prime brokers.

Michael Hintze, CEO of CQS Management, said, "We are delighted to be at the forefront again on SwapsWire. By adopting sophisticated technologies like this, we are able to continue to lead the way to in managing our operational risk. This ensures that we always be among the best in the business. Being able to handle multiple asset classes, both direct dealt and give-up trades all on one platform, is impressive."

Societe Generale was one of the first dealers to offer electronic equity option trades with buy-side clients.

Eric Litvack, Societe Generale’s Global COO for Equity & Index Options, said, “Our ability to offer the SwapsWire service for free to our clients is a real boost to our customer relations. The same-day turn around on equity option confirmations means a huge improvement in the rate of outstanding confirmations and therefore reduces operational risk and processing costs for our clients and us. We would like to see all of our clients using the SwapsWire service

Henry Hunter, SwapsWire’s Chief Marketing Officer, said, “We are pleased to see our equity service starting to be used by the buy-side. SwapsWire is uniquely positioned because it is the first and only platform which links together buy-side, sell-side, inter-dealer brokers, electronic dealing platforms and prime-brokers across three major asset classes.”

SwapsWire expanded the equity options service to Japan in June of this year. The system is already used globally by hundreds of dealers, inter-dealer brokers, and buy-side clients for other OTC derivative products, including interest rate and credit derivatives.

SwapsWire captures, verifies and confirms deals on-screen within minutes of execution, removing the need for manual processing of paper contracts. As well as the reduction in processing cost, confirmation on trade date (T+0) means a significant reduction in operational risk.