The parties have signed an agreement which is expected to lead to a full partnership comprising the ATFox swaps franchise, the expertise and liquidity of HPC and the distribution network and market-making model of MTS. ATFox will accelerate its growth in the short-term swaps business as a foundation for expansion into medium- and long-term swaps as those markets evolve. The company will also incorporate elements of the MTS business model with regard to corporate governance and close involvement of market participants in setting the strategic direction of the platform.
"MTS member banks have been seeking an electronic solution to swaps trading which can work within the MTS framework. By associating with ATFox, we have an outstanding opportunity to offer our clients best-in-class execution through the industry leader. Further, the ability for day-to-day interaction with the HPC swaps desk and its pool of liquidity is key to the success of this venture," said Gianluca Garbi CEO of MTS.
Jack Parrish, CEO of ATFox, added "By associating with MTS and its vast network of fixed income clients, we have taken a significant step towards our objective of building the benchmark platform for electronic swaps trading. ATFox will also benefit from MTSâ experience in leveraging a network of liquidity providers who will be closely associated with and involved in the development of the platform."
Frederic Metz, Chairman of ATFox and CEO of HPC, concluded: "Building on MTSâ experience in establishing liquid electronic markets, we intend to double the number of market-makers contributing on ATFox by year end and to significantly increase the number of users as well. Together, MTS, ATFox and HPC are set to offer the low-cost, liquid and efficient electronic swaps trading platform the inter-dealer market has been waiting for."