March 02, 2006

Thomson TradeWeb Integrates With SwapsWire

Thomson TradeWeb, the online marketplace for fixed income securities and over-the-counter derivatives, has completed an integration with SwapsWire, an industry-backed electronic system for real-time confirmation of OTC derivatives.

According to Thomson TradeWeb, the integration will allow customers to trade interest-rate derivatives on TradeWeb and then seamlessly confirm the transactions electronically on SwapsWire. This will signficantly reduce the operational risk and costs to both customers and dealers alike and also improve their post-trade processing capabilities in line with recent industry initiatives, the release says.

"This innovation with SwapsWire addresses client and dealer demand for more flexible STP solutions in this rapidly expanding and changing market," states Lee Olesky, president of Thomson TradeWeb, in the release. "As we continue to expand our derivatives product capabilities, the need to advance post-trade processing is critical, and this interface ensures we will be able to meet market expectations," further states Olesky in the release.

TradeWeb launched its interest-rate swap platform in Europe in 2005 and in the United States in September 2005. Since the launch, TradeWeb has experienced tremendous growth in the electronic trading of interest-rate swaps, both in terms of participation and liquidity, states the release.

Elie El Hayek, head of rates, Europe, at HSBC, states in the release: "Our ability to offer a full STP process enhances the quality of our service to HSBC customers, reducing costs, reducing booking errors and eliminating delay. HSBC's aim is to be one of the top IRS dealers in TradeWeb, and participation in SwapsWire is another important factor to achieve this goal."

Lava Trading Deploys LavaX on the Buy-Side

Lava Trading launched LavaX, a new, advanced version of the LavaBlotter for the buy-side community, according to a release, which announces its successful deployment and rapid adoption.

LavaX provides the buy-side with functionality to access hidden liquidity. Its features include NYSE OpenBook integration, strong list trading functionality, ease of use improvements for modifying orders, and advanced algorithmic parameters and depth for account allocation. Eighteen sponsoring brokers are currently available through the LavaX system, along with 10 algorithmic trading routes and two introducing broker relationships.

In terms of its rapid adoption, LavaX saw a 60 percent increase in volume in the fourth quarter of 2005 vs. the previous quarter. Market share for LavaX doubled in 2005.

Additional enhancements to LavaX are planned for the coming year, including enhanced commission management tools, options trading and block trading functionality. Lava is also in the process of integrating pre-and post-trade analytical tools and integrating with additional basket trading applications, the release stated.

ICAP Hires Head of Securities Lending to Spearhead Electronic Platform

ICAP PLC, the world's largest interdealer broker, announced its entry into electronic securities lending brokerage with the hire of Roy Zimmershansl as head of electronic securities lending. He will be based in London and reports to Garry Jones, CEO of ICAP Electronic Broking in Europe.

He will also guide the launch of a new electronic trading platform covering both the fixed income and equity markets. He will work closely with existing electronic platforms, utilizing ICAP's existing technology and e-sales and marketing experience across Europe, the release said.

According to ICAP, the time is right for the transition to electronic trading in this sector. The market is currently fragmented and highly labor intensive with manual trade reporting and poor straight-through processing. ICAP says it will use its electronic platform to improve the internal efficiency of its customers in these markets by close integration with their systems.

Zimmerhansl has more than 25 years experience in securities lending in both fixed income and equities in Europe and North America. He was most recently global head of sales and marketing of securities lending at Deutsche Bank, and previously worked at Rabobank, Nomura and Chase Manhattan in similar roles.

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