The service will initially work with single name CDS and index products, but the participants expect it will also eventually tackle other OTC derivatives, including interest rate swaps and swaptions and equity derivatives. The brokers say they will offer the service at no charge to the dealers and will bring aboard other inter-dealer brokers after the one-year pilot period comes to an end.
“These banks can now process the bulk of the trades they do on the market with one protocol, one system and in one location,” said Michael Fuhrman, GFI’s head of e-trading in New York. “At the end of the working day, they won’t have to come to GFI to check their trades and then move to another broker to do another. It will reduce the workload for both dealers and brokers alike,” he added.