CME Swaps on Swapstream

When launched in Q1 2008, CME Swaps on Swapstream will be the first OTC interest rate swap to combine the liquidity and trading protocol of the OTC market with the clearing efficiencies and financial safeguards of an exchange traded product.
It will offer unparalleled direct access to deep liquidity pools with the regulatory protection, risk management and cost efficiencies previously only available with listed futures contracts.

CME Swaps on Swapstream provide a way to:

• Maintain established relationships between customers and liquidity providers.
• Reap the benefits of straight through processing found in electronic trading.

Things to know:

• CME Swaps on Swapstream will include:
  • Forward-dated interest rate swaps denominated in U.S. dollars versus 3-Month Libor, with maturities from 3 months to 30 years
  • Euros versus 6-Month Euribor, with maturities from 6 months to 30 years,
  • Short-term OIS swaps ending on monthly International Monetary Market (IMM) start dates.
  • The fixed coupons will be reset at the end of every day and positions will be marked to market daily.
  • Position will be marked to market daily by resetting the fixed coupon.

• Traded on the Swapstream sPro platform
• Centrally cleared through CME using its OTC clearing solution, CME Clearing360
  • Counterparty creditworthiness guaranteed

Benefits of CME Swaps on Swapstream:

• No ISDA documentation requirement
• No swap confirmation requirement
• No bilateral collateral
• Automatic nettings of positions
• Central counterparty clearing
• Increased availability of valuable counterparty credit lines
• Minimized financial risks with daily mark to market
• Security of CME Group Financial Safeguards system
• Streamlined processing and allocations

About Swapstream

Swapstream is a global, over the counter electronic trading platform for interest rate swaps. The Swapstream sPro platform was designed to meet the specific needs of the interest rate swap community, offering cutting edge trading functionality and processing efficiencies. Swapstream is a wholly owned subsidiary of CME Group. For more information on Swapstream, please contact a marketing representative at +44207 796 7201 or visit www.swapstream.com.