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Tullett Prebon Press Releases

21 Sep 11
Tullett Prebon confirms support for tpSWAPDEAL

•     Ultra low latency implied order generation engine creating deep liquidity in the  maximum
      number of products
•     “Pegging” capability enabling clients to place specific orders into the market  tracking 
      futures contracts
•     Unique counterparty trading preference model enabling banks to select  counterparties
      to whom they are prepared to offer liquidity and to a specific maximum maturity
London, New York, Singapore 21 September, 2011: Tullett Prebon, one of the world’s  leading inter-dealer brokers, today confirms early support for the forthcoming launch of  tpSWAPDEAL, its hybrid interest rate swap trading platform, leveraging the combination of  Tullett Prebon’s high-level technology with its established voice broking capabilities. 

Initially tpSWAPDEAL, which forms part of Tullett Prebon’s rapidly expanding electronic  broking services, will support trading  in  Euro denominated IRS, gap and butterfly  strategies, matched maturity futures spreads, and tenor basis swaps. 

tpSWAPDEAL utilises the most up-to-date and market leading technology from  MillenniumIT, a premier technology solutions provider, wholly owned by the London Stock  Exchange and serving the global capital markets industry as a specialist in exchange  grade, low latency technology. 

The new platform has been created with the flexibility to give Tullett Prebon’s clients the  ability to transact either entirely electronically or via our comprehensive voice execution  broker network, within both the current trading landscape and under all anticipated  regional regulatory environments. 

In addition to standard electronic platform functionality, tpSWAPDEAL has a number of   features designed to replicate and enhance the advantages of the current voice market: 
• Ultra low latency implied order generation engine creating deep liquidity in the  maximum
  number of products

• “Pegging” capability enabling clients to place specific orders into the market  tracking futures
   contracts. This allows counterparties who do not wish to provide  continuous streaming
   liquidity to actively participate in the platform and submit  prices inside streaming
   contributions, thus adding value to the liquidity pool

• A unique counterparty trading preference model which enables banks to select 
  counterparties to whom they are prepared to offer liquidity and to a specific 
  maximum maturity. This therefore provides full market transparency by including 
  institutions currently not members of a clearing house but which represent a 
  proportion of the wholesale market.
Importantly, tpSWAPDEALoperates using a
  non preferential open governance and fee  structure for Tullett Prebon’s existing 
  client base and is designed to attract participation  from customers operating on
  both a cleared and bilateral trading model. 

Clients who have committed to supporting tpSWAPDEAL with market liquidity and are  currently in the process of establishing connectivity include:- 

Pierre Renom, Global Head of Rates Trading at BNP Paribas, commented: "In  the changing
  regulatory environment for OTC markets there has been much innovation in the industry
  with regard to how dealers and brokers manage liquidity.   Tullett Prebon’s tpSWAPDEAL
  is the latest instance and may prove to be one of  the market leading innovations.  Tullett
  Prebon’s electronic initiative faces much  competition, but in an environment where
  technology is the game changer, they  bring a new dynamic to the market and have been
  very impressive so far

Andy Morton, Head of G10 Rates, Risk Treasury and Fixed Income Finance at  Citigroup,
  said:  “Citi looks forward to market making on the tpSWAPDEAL platform, which we see
  as an important new part of the IDB market, especially in  light of the evolving regulatory

Thomas Roesner, Head of Rates Trading at Commerzbank, commented:  “tpSWAPDEAL
  is entering a fast changing marketplace which we believe represents the future of
  Swaps trading. Its hybrid nature and several clever  innovations make it an intriguing
  proposition. Commerzbank looks forward to building on its existing market making
  activities by providing liquidity to the  platform

Franck Darlay, Deputy Head of Euro Rates Trading at HSBC, said:  "HSBC is  fully
  committed in supporting electronic initiatives to increase efficiency, transparency and
  liquidity in the OTC derivatives market. We feel Tullett Prebon's  tpSWAPDEAL offering
  will very much have a place in this process

Steve Ashley, Global Head of the Macro Products Group at Nomura, welcomes  the
  introduction of tpSWAPDEAL’s hybrid model  to the electronic swap dealing  landscape:
  “The combination of highly performant technology and innovative  platform features
   represent differentiators for the platform

Simon Wilson, Deputy Head of EMEA DeltaTrading, RBS Global Banking and  Markets,
  commented: “As a leading market maker in the Fixed Income markets, RBS welcomes
  Tullett Prebon’s  new tpSWAPDEAL platform. The use of exchange  grade technology
  and the adoption of a hybrid trading system to combine their top  tier voice broking
  business should allow them to compete effectively with the other  platforms offering
  electronic trading of FI products

Christophe Coutte, Co-Global Head of Fixed Income and Currencies at  Société  Générale
  Corporate & Investment Banking, commented:  “tpSWAPDEAL is an innovative proposal to
  address the current changing and  challenging environment. Tullett Prebon's approach is
  original in the sense that it  promotes openness within the wholesale swap community

Due to the uniqueness of tpSWAPDEAL functionality, tpSWAPDEAL has also been asked  to provide trading capability, via the GUI by a further 35 clients in 9 countries. 

Steph Duckworth, Global Chief Operating Officer at Tullett Prebon, said: “tpSWAPDEAL has been developed with the most up-to-date technology, providing our  clients with the best-in-market hybrid broking product, combining the benefit of our  extensive voice platform with the ability to trade electronically. Our secure, stable and robust platform enables clients to trade and process transactions more quickly and with  less risk than ever before.” 

Paul Humphrey, CEO Electronic Broking & Information at Tullett Prebon, said: “We believe tpSWAPDEAL will best preserve the current liquidity pool that our customers  currently enjoy, encouraged by Tullett Prebon’s strategy of open inclusion to all existing  and potential clients, and functionality designed to most easily translate voice liquidity onto  an electronic screen. tpSWAPDEAL demonstrates Tullett Prebon’s ability to deliver  sophisticated, efficient and innovative electronic platforms.” 

- Ends - 

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