Institutional brokerage Prebon Yamane has launched 'py match' for US dollars (USD), an online system that enables automated matching of floating rate gaps in forward rate agreement (FRA) positions on a global basis.
Prebon Yamane says the system offers interest rate swap (IRS) and FRA traders greater efficiency in hedging floating rate exposures at mid-point prices, helping to minimise the risk of short term volatility in interest rates.
Patrick Keenan, director, Prebon Yamane Group, says: "The success of py match over the past year in Australian, Hong Kong and Singapore dollar and Korean won currency versions has shown the value and appeal of this system."
As with the other currency versions, Py match USD has been developed to help users to manage mis-matched exposures. The price curve will be based on the daily Libor fixings. The curve will then be published on the py match Web site just prior to a matching run.
Customers can input orders directly via the py match Web site or upload orders through a spreadsheet. Authorised brokers will be able to enter orders on behalf of participating customers.
Orders will be automatically matched based on the date and size of counterparty orders. The prices at which these orders are matched will be based on the price curve published for the particular matching session. Successful matches can be viewed online.
Users participating in the matching session will receive a customised report containing all trade confirmations and billing information.