Icap launches reset risk competitor to Switchfix

Interest rate swap trading desks now have an alternative method of eliminating reset risk, courtesy of a new online matching system developed by Icap – the UK interdealer broker – called Fra-Cross.

The service aims to reduce reset risk caused by having swap positions with differing maturities. For example, a trader paying a five-year swap that then receives a five-year swap several days later at a more favourable interest rate cannot forget about the floating legs of the trades. There is a r