Euronext 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.”

Source: Euronext