MTS Swaps by Wematch.live: a new digital marketplace for Interest Rate Swaps dealers
Amsterdam, Brussels, Dublin, Lisbon, London, Milan, Oslo and Paris – 27 February 2023 – Euronext today announced that MTS, one of the leading European electronic fixed income platforms, and Wematch, the award-winning fintech digitising buy- and sell-side firms' dealing workflows, have joined forces to launch MTS Swaps by Wematch.live, a web-based interdealer trading venue for the Interest Rate Swaps (IRS) market.
MTS Swaps, which can be accessed through a web browser via Wematch.live, digitises voice trading workflows, and bridges the gap between legacy voice trading models and pure electronic alternatives by offering innovative negotiating functionalities.
By leveraging MTS Swaps, dealers will benefit from a wide range of game-changing features compared to traditional voice-based workflows including increased efficiency and productivity through automation; reduced conduct risk through clear and transparent electronic audit trails, and the elimination of chat from workflows; and trade protection through pre-trade price and size controls and auto-protect features.
The solution also reduces costs associated with IRS trading through a competitive, simple, and transparent fee schedule and a choice of “all-you-can-eat” or “pay-per-trade” fees.
MTS Swaps supports straightforward digital negotiation and execution of package transactions including Gadget, Curve, Flies, 3m/6m Tenor Basis, ESTR/EURIBOR Basis, and EUREX/LCH Basis. Launching with interdealer order-book functionality, dealer-to-client RFQ (Request for Quote) will follow later this year. MTS Swaps will benefit dealers of all size by providing innovative negotiating functionalities, such as Meet-in-the-Middle and Upsize.
The solution benefits from MTS’s extensive network across Europe that trade an average daily volume of more than €160 billion, and Wematch’s proven platform that accelerates the digitisation of dealing workflows. MTS’s regulated, orderly and efficient markets and MTFs connect seamlessly to the relevant post-trade systems, including central clearing houses.
Angelo Proni, CEO of MTS – Euronext Group, said: “There has been a major structural shift toward electronic trading in the interest rate swaps market since the introduction of new regulation in the wake of recent macroeconomic uncertainty. MTS Swaps combines MTS’s network, regulated markets, connectivity, and Rates franchise with Wematch’s flexible, agile technology to deliver an innovative solution that puts the trader front and centre.”
Joseph Seroussi, CEO and Founder at Wematch, said: “Wematch is on a mission to empower financial institutions through digitisation. Our cross-asset platform is designed to serve dealers with ease and efficiency. With nearly 1000 traders and sales at 90 financial institutions already utilising our highly-regarded securities finance platform, we are proud to be leading the change in bridging traditional and digital finance. We remain committed to delivering robust and scalable alternatives to voice trading, and are thrilled to announce the launch of MTS Swaps by Wematch.live in partnership with MTS."
Julian Baker, Co-Head of Euro Linear trading, J.P. Morgan said: “We welcome new avenues that boost access to liquidity and increase workflow efficiency in the dealer-to-dealer market.”
Anna Lucarelli, European Head of Corporate and Public Sector Rates Sales ex DACH at Deutsche Bank, said: “We see clear value in this new proposition from MTS and Wematch, with the opportunity to accelerate dealing workflows and help firms to increase productivity and reduce costs.”
Euronext is the leading pan-European market infrastructure, connecting European economies to global capital markets, to accelerate innovation and sustainable growth. It operates regulated exchanges in Belgium, France, Ireland, Italy, the Netherlands, Norway and Portugal. With close to 1,930 listed equity issuers and around €6.3 trillion in market capitalisation as of end December 2022, it has an unmatched blue chip franchise and a strong diverse domestic and international client base. Euronext operates regulated and transparent equity and derivatives markets, one of Europe’s leading electronic fixed income trading markets and is the largest centre for debt and funds listings in the world. Its total product offering includes Equities, FX, Exchange Traded Funds, Warrants & Certificates, Bonds, Derivatives, Commodities and Indices. The Group provides a multi-asset clearing house through Euronext Clearing, and custody and settlement services through Euronext Securities central securities depositories in Denmark, Italy, Norway and Portugal. Euronext also leverages its expertise in running markets by providing technology and managed services to third parties. In addition to its main regulated market, it also operates a number of junior markets, simplifying access to listing for SMEs.
MTS is the market operator of major fixed income trading platforms for European rates, money markets, and swaps participants, facilitating daily transaction volumes of more than €160 billion. For over 35 years, MTS has supported the European fixed income market by bringing traders together to unlock liquidity, maximise trading opportunities, and optimise post-trade processes. As a one-stop shop, our cutting-edge trading solutions and market data meet the ever-changing requirements of buy- and sell-side organisations across a wide range of instruments, order types, and access methods. MTS is part of the Euronext Group, the leading pan-European market infrastructure provider.
By digitising workflows, Wematch helps financial institutions tackle some of their biggest challenges including automation, cost, API integration, productivity, compliance, and conduct risks. With a presence in London, New York, Paris, Tel Aviv, and Singapore, our award-winning digitally native platform enables the matching of interest on financing structures, optimises workflow around trades, and drives more efficient communications internally and externally. We work in lockstep with financial institutions to develop solutions that fit their needs precisely, and from which the entire Wematch client community can benefit. Wematch is available either as a standalone product or on regulated trading venues as required by clients: our platform enables buy- and sell-side firms to connect to over 900 traders and 90 institutions to better exchange pre-execution, negotiation, and post-trade transaction data. We drive profitability for financial institutions through next-level efficiencies including cost and time savings and significantly enhanced productivity.