CME Group subsidiary Swapstream signed up 33 major institutional investors to its Swapstream Pro electronic trading platform for interest-rate swaps, said CME spokeswoman Pamela Plehn. CME swaps on Swapstream will be tested in March and go live in the second quarter.
Swapstream is the first over-the-counter electronic market for interest-rate swaps open to all market participants that provides central clearing for the OTC trades. CME Clearing360, Swapstreams central-clearing service, removes counterparty risk and provides straight-through processing for those transactions in the $271 trillion global interest-rate swap market. The institutions are asset managers and hedge funds from the U.S., Europe and the Middle East. They include Capstone Investment Advisors, Centaurus Capital, Citadel Investment Group, Infinium Capital Management, NewSmith Asset Management, the Clifton Group and Threadneedle Investments.