SwapsWire already supports share and index options and share and index variance swaps in Europe, where the service has been live since May 2005, after receiving backing from 12 major dealers (Barclays, BNP Paribas, Calyon, Citigroup, Credit Suisse, Deutsche Bank, Dresdner Kleinwort Wasserstein, Goldman Sachs, JPMorgan, Merrill Lynch, Societe Generale and UBS).
After a meeting of global regulators in September, attention has turned to the level of outstanding documentation for OTC equity derivative trades, with uptake of automation initiatives such as SwapsWire expected to be a key part of the drive to improve efficiency. SwapsWire is working with global dealers to ensure that rollout of products and services are aligned with the focus on standardized documentation, another element of the efficiency drive.
Karen Newton, Director and Global Head of OTC Derivative Operations at Credit-Suisse in London said, "SwapsWire has been a very effective clearing tool for us in Europe and Japan. Trades booked over SwapsWire begin as already-confirmed trades in our trade capture systems, so by definition never even hit the outstanding confirmations queue. We are pleased the system is expanding throughout the Asia region, an important market for the equity derivatives product."
Buy-side clients are able to access the system free of charge using secure web-browser technology. Buy-side volumes have been increasing rapidly on SwapsWire. The first buy-side equity options trades went through in August, led by CQS Management and Societe Generale. A wide range of buy-side clients use SwapsWire to confirm, allocate, novate and give-up trades in real time. The client base is global, and consists of hedge funds, asset managers and other financial institutions.