SwapsWire Ltd announces that seven major prime brokers have chosen to use its PBWire platform, initially for OTC Interest Rate derivatives trade intermediation. The seven dealers, Barclays Bank PLC, Credit Suisse First Boston, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, and The Royal Bank of Scotland, will be joined by a number of other prime brokers using PBWire, making it the industry standard for this market.
PBWire is an extension of the successful SwapsWire automated trade confirmation and STP system used by dealers, inter-dealer brokers and buy-side clients in over 100 locations globally.
Broker-dealers executing trades with their clients will be able to use their existing SwapsWire interfaces to have trade details electronically communicated to both the client and the prime broker in real time for verification and confirmation. The buy-side client and the prime-broker can confirm the trade either via a completely automated program interface or using interactive screens. Buy-side clients use the system free of charge.
Prime brokers, executing brokers and buy-side clients each benefit from being able to formally agree full trade details quickly and effortlessly within minutes of execution. The vast majority of executing brokers already use the award-winning SwapsWire confirmation system, which will make adoption of PBWire faster and easier. PBWire is based on the same underlying transaction structure, using the FpML (Financial products Markup Language) standard, and uses the SwapsWire software and communications infrastructure.
Stephanie Ercegovic, Managing Director of Prime Brokerage at JPMorgan said "PBWire enables us to operate a scalable and efficient Prime Brokerage business for Interest Rate Derivative give-ups where the trade notification and confirmation takes place in minutes, greatly reducing the operational risk to all constituents. We hope to standardize even more functionality into PBWire." JPMorgan is currently leading an industry consortium to standardize Prime Brokerage protocols into PBWire.
Michelle Wong, Global Head of Prime Brokerage at the Royal Bank of Scotland said "We are delighted to offer our buy-side clients Prime Brokerage for Interest Rate Derivatives using the Swapswire matching process. We believe the combination of RBS Prime Brokerage and the PBWire platform will give clients the best combination of liquidity, credit quality and operational efficiency"
Glen Mifsud, Head of Global Fixed Income Prime Services at Credit Suisse First Boston, said: "PBWire provides an efficient and robust platform for interest rate derivative intermediation. It allows almost instantaneous trade notification and confirmation in a standardised format whilst offering the flexibility to link to various trading or portfolio management systems. This will help us provide clients with an automated solution that is integrated with the rest of CSFBâs prime brokerage services."
Chip Carver, CEO of SwapsWire commented "PBWire represents another example of SwapsWireâs comprehensive approach to industry solutions. We do not just grab the low hanging fruit; we create robust and complete solutions for the market. Our users continue to recognize this approach is superior by continually expanding the points of contact between us and their businesses."