Interdealer broker GFI Group reports that it has launched US dollar (USD) market agreed coupon (MAC) swaps on its swap execution facility (SEF).
Live tradable prices for these contracts are available in a central limit order book (CLOB) on RatesMatch, GFI’s electronic trading platform for interest rates, according to the company, which adds that the swaps are cleared via straight through processing (STP) with CME Group and LCH.Clearnet.
MAC swaps were created by the Securities Industry and Financial Markets Association (SIFMA) and the International Swaps and Derivatives Association (ISDA) as an over-the-counter swap product with pre-defined standard terms,” GFI officials also note. “They start on IMM (International Money Market) dates and trade with a pre-set fixed rate determined by SIFMA and ISDA. The standardization of product terms allows for greater initial margin and line item efficiencies for market participants.”
GFI’s RatesMatch provides technology for “specialist execution services across a breadth of interest rate derivatives,” according to its statement. The service provides a fully integrated workflow, from price discovery, pre-trade credit checks and trade execution, to trade capture and STP. GFI also offers electronic connections to major clearinghouses and swap data repositories (SDRs).
“We are very pleased to be amongst the first to operate a CLOB for USD MAC Swaps on a SEF,” Henry Ann, head of rates for GFI Swaps Exchange, says in GFI’s statement, in which he also notes that “this innovation toward a CLOB comes in response to rapidly increasing market demand for this product.”
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