“MiniSwaps open up the interest rate trading market for a range of new users,” said Robert Douch, global head of distribution in ABN Amro’s financial markets business. “In particular, those previously unable to access this market due to required credit lines, complex legal documentation or regulatory issues preventing their use of derivatives.”
The ‘MiniSwaps’ product let users take long and short views on interest rates and spreads. The open-ended products are priced at intrinsic value. Unlike derivatives, there is no time value element in the price.