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UBS launches SwapsDirect algo platform

First Published 1st May 2014

UBS launches algorithmic trading platform for U.S. equity swaps.

UBS has launched UBS SwapsDirect to enable institutional clients to execute US equity swaps transactions electronically direct from their preferred OMS or EMS.

The platform provides automatic processing as well as execution and confirmation. In addition to equities, clients of UBS can also access derivatives linked to alternative assets such as REITS, MLPs and other solutions while eliminating many of the operational challenges associated with OTC derivatives.

Equity swaps are increasingly seen by institutional investors as an efficient way to gain customized long or short exposure to specific stocks, asset classes or sectors, to take on hedges and to quickly express their market view. "Trading swaps has not traditionally linked higher speed/lower touch execution with operational efficiencies. Clients accepted the more gradual speed of swaps trading for such efficiencies as ease of settlement and reporting," said Ryan Nelson, Head of Americas Synthetic Equity Distribution. "UBS SwapsDirect solves this problem by giving clients the speed of execution that they have come to expect from executing a cash trade, while also maintaining the full operational efficiencies that they have come to demand in swaps."

UBS SwapsDirect aims to bring operational efficiency and simplicity to this process while still giving clients the ability to set their desired strategy, parameters of establishing economic exposure and the assurance of protection from the information-barrier framework.

"We are always listening to our clients, trying to deliver best-in-class solutions and help clients prepare for how the market environment will evolve over the next few years," noted Tom Regazzi, Head of Americas Synthetic Equity Trading. "Equity swaps have certainly been an important part of this ongoing conversation and we are confident that UBS SwapsDirect will allow our clients to obtain exposures to the US equity market in the most efficient way possible."