Liffe team up with SuperDerivatives
Liffe will provide SuperDerivatives users with direct access to its Connect platform in an effort to help converge exchange traded STIRs contracts with OTC instruments.
The deal will see the options benchmark provider give access to the exchanges prices so as to develop potential arbitrage opportunities between OTC and listed contracts, SuperDerivatives told FO Week.
The agreement between the two will allow SuperDerivatives customers the ability to compare Liffes listed prices to that of OTC equivalent swaps contracts.
We are focusing on merging the activities of OTC and exchange traded derivatives allowing greater arbitrage opportunities by being able to price appropriately, said Robert Emerson, SuperDerivatives product manager for interest rates derivatives.
The agreement will largely focus on the companys bank and hedge fund clients, SuperDerivatives said.
What people are missing is a single place where people can discover prices, deliver execution as well as in depth analysis. This will allow people to do all these things in one place, said Ed Crouch, global head of corporate development and strategy at SuperDerivatives. We are not looking to create competitiveness between OTC and listed products. But give our clients the ability to seek out arbitrage opportunities.
The options specialist added that while it has initially signed an agreement to use the system with Liffes STIRs products it was in the process of expanding the technology to be used to a wider repertoire of Liffe contracts while the company did not rule out the possibility of also looking to join up with other exchanges such as Eurex and CME Group
The deal will see the options benchmark provider give access to the exchanges prices so as to develop potential arbitrage opportunities between OTC and listed contracts, SuperDerivatives told FO Week.
The agreement between the two will allow SuperDerivatives customers the ability to compare Liffes listed prices to that of OTC equivalent swaps contracts.
We are focusing on merging the activities of OTC and exchange traded derivatives allowing greater arbitrage opportunities by being able to price appropriately, said Robert Emerson, SuperDerivatives product manager for interest rates derivatives.
The agreement will largely focus on the companys bank and hedge fund clients, SuperDerivatives said.
What people are missing is a single place where people can discover prices, deliver execution as well as in depth analysis. This will allow people to do all these things in one place, said Ed Crouch, global head of corporate development and strategy at SuperDerivatives. We are not looking to create competitiveness between OTC and listed products. But give our clients the ability to seek out arbitrage opportunities.
The options specialist added that while it has initially signed an agreement to use the system with Liffes STIRs products it was in the process of expanding the technology to be used to a wider repertoire of Liffe contracts while the company did not rule out the possibility of also looking to join up with other exchanges such as Eurex and CME Group
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