Euronext today announced that MTS, one of the leading European electronic fixed income platforms, and Wematch.live, the award-winning fintech digitising buy- and sell-side firms’ dealing workflows, have successfully run the first session of the Risk Netting Service for Interest Rate Swaps (IRS).
The 3 month vs 6 month EURIBOR (3m/6m) basis session executed trades across several participants and tenors on 20 June 2023.
The MTS Swaps Risk Netting Service is a session-based trading functionality that builds upon and complements the web-based interdealer trading venue for the Interest Rate Swaps (IRS) market, MTS Swaps by Wematch.live, launched in February 2023.
The MTS Swaps Risk Netting Service is the only platform for automated risk netting of IRS inclusive of trading constraints, PnL controls and contingencies.
Participants can efficiently manage their risk across their IRS portfolios during regularly scheduled Risk Netting sessions in 3m/6m, €STR/EURIBOR, and Eurex/LCH basis.
MTS also plans to launch a dealer-to-client RFQ (Request for Quote) trading functionality for IRS, BondVision Swaps, in early 2024.
Oliver Clark, Head of Product Development at MTS, said: “The MTS Swaps Risk Netting Service delivers another innovative electronic trading solution and source of unique liquidity for traders in the interest rate swaps market. We look forward to working with our clients to continue innovating across the rates market.”
Steve Schiff, Head of Risk Netting Services at Wematch.live, said: “We are thrilled to have run the first session of the Risk Netting Service by Wematch.live for interest rate swaps with our partners, MTS. This milestone represents a significant advancement in our mission to provide cutting-edge solutions and enhance liquidity in the interest rate swaps market. The session-based functionality of the Service enables participants to effectively manage risk in bulk across their portfolios, fostering efficiency and mitigating PnL volatility: we are proud to be at the forefront of innovation and look forward to further collaboration with MTS as we build out new liquidity pools for the rates market.”