European banks use Wematch for first EUREX/LCH Basis swap trade

Wematch has hosted a EUREX/LCH Basis swap trade on its electronic trading platform, carried out between Societe Generale and Landesbank Baden-Württemberg (LBBW) and negotiated on a purely electronic basis, making this trade the first of its kind to be completed in the derivatives market.

The EUREX/LCH Basis swap tool helps traders manage clearinghouse risk, and a company statement makes note that this translates to complete control over orders and confidentiality and at a significantly lower cost than voice-based or hybrid trading pathways.

There are 18 banks on the platform, and other products processed include 3mth/6mth Basis Curve and Flies, EONIA/EURIBOR Basis, and Gadget Swaps. Thilo Rossberg, head of FiCC Trading at LBBW, said in a statement: “At LBBW we are constantly looking towards technology solutions to find innovative and cost-effective means to execute our trading and risk reduction strategies in the marketplace.”

Read the full release

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