The evidence for this is that an international bank is currently said to be negotiating to buy, not Swapstream, but Swapstream’s technology to use inhouse. If other banks follow suit Swapstream’s business proposition must be weakened.
Swapstream CEO Marcus Grubb did not return my calls in late February and was said to be in a meeting with all the management – possibly a sign that negotiations are at an advanced stage.
Tough as it is to migrate swaps deal-making electronically, the processing is well taken care of and Swapswire, a bank-owned utility, is hitching up with London Clearing House’s SwapClear to make things even more seamless.
Equity market players should take note as to how easy it all is if everyone co-operates. Brian Caplen
