British interdealer broker Icap is set to launch an electronic market for trading Euro interest rate swaps (Euro IRS) with market makers support.
Icap said that market makers like Barclays Capital, Deutsche Bank and JP Morgan have each agreed to support the platform by providing streaming prices, alongside a number of other banks.
Icap’s electronic interest rate swap platform will go live on 6 September 2010 and will combine with the company’s voice brokerage to create a single liquidity pool in Euro IRS instruments out to 30 years maturity.
The platform will be open to market making banks that have access to a clearing house for interest rate derivatives. Other banks will continue to have access via Icap’s voice brokers.
Icap CEO Michael Spencer said that all transactions will be captured and recorded electronically although the company expect the most liquid and standardized products to move progressively electronic while the less liquid products remain mostly voice.