RBS debuts trading of electronic inflation swaps

The RBS inflation trading engine provides a real-time tradable market to be streamed to customers’ desktops for the first time. The engine covers the main European indexes: the Eurozone consumer price index (Eurozone CPI), the UK retail price index (UK RPI) and French consumer price index excluding tobacco (French CPIxt). RBS is offering zero-coupon inflation swaps, which accounts for the majority of the inflation derivatives market.

“RBS believes the inflation swap market is now ready for electronic trading, and will continue to break boundaries in 2006 and beyond with new markets, more flexibility in the products and wider means of distribution,” said Charles Harris, head of inflation trading at RBS in London.

Traders that sign up to trade using RBS’s engine have the option of choosing to execute swaps from one year to 50 years in maturity, using either click-to-trade or request-for-quote protocols. Confirmation is immediate on both methods of execution.

The trading engine uses straight-through processing, which means the deal books into the trader’s risk management system and the client’s confirmation arrives automatically. Full trade details and trading history are available to the customers and their support staff through the Bloomberg platform.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Next-generation technologies and the future of trading

At a Risk.net webinar in association with capital markets technology provider Numerix, panellists discuss the potential for increased adoption of the public cloud to boost investment performance, its impact on risk management and overcoming barriers to…

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here