Technology developed by Australian company Computershare is to be used by global broking company Garban-Intercapital as the basis of an electronic platform for interactive trading and the confirmation of interest rate swaps. The deal, which involves licence and development fees, is valued at $A19 million.
"We are significantly the largest global broker in the interest rate swaps market and believe that this market is now ready for major technology change," explained Michael Spencer, CEO of Garban-Intercapital. "We anticipate that screen-based trading of vanilla swaps will gradually emerge over the next few years, initially with partially-automated quotation and execution. Our strategy is to be at the forefront of these changes".
Chris Morris, CEO of Computershare, said he was "very excited" to be involved in providing the automated quotation and execution system for Garban-Intercapital, which claims to undertake daily transaction volumes in excess of $US200 billion. "Working with the leading swaps broker in the world gives us a wonderful platform from which to display the power and quality of our ASTS screen-based trading system to the world's financial markets."
ASTS is already used in Finland, Norway and New Zealand, and Computershare is working with the Pacific Exchange in San Francisco to deliver a stock options trading environment, Morris added.