Trading Vanilla IRS?

Solorzano · March 5th, 2009, 11:45 am

Does anyone know if is there any broker that lets individuals trade vanilla IRS?I've contacted a bunch of them, cityindex, IG Index, HSBC, CMC Markets, Barclays stockbrokers, etc... and no luck. you have to be an institution and open an account with a prime-brokerage.cheers

Martinghoul · March 5th, 2009, 11:50 am

To trade products like IRS, you need to have an ISDA/CSA in place with the cpty. How do you intend to deal with this as an individual?

Solorzano · March 5th, 2009, 2:40 pm

I wanted to deal this as an individual, to hedge some floating liabilities and some views that I have on the long end of the swap curve (but not on the treasury curve). I work in derivatives structuring, so I understand the counterparty risk implications, therefore I am happy to put a collateral in place.thx.

Martinghoul · March 5th, 2009, 3:25 pm

QuoteOriginally posted by: SolorzanoI wanted to deal this as an individual, to hedge some floating liabilities and some views that I have on the long end of the swap curve (but not on the treasury curve). I work in derivatives structuring, so I understand the counterparty risk implications, therefore I am happy to put a collateral in place.thx.Good luck, mate!

Solorzano · March 5th, 2009, 4:31 pm

I've seen I can trade the strip of 3mLIBORs using CFDs or spread bets up to two years. Therefore I can do a 2y Swap, but not any longer.I think spread bet companies should offer spread bets on IRSs, and people could use it to hedge their long-term liabilities. Or pure especulation.

Martinghoul · March 5th, 2009, 4:39 pm

QuoteOriginally posted by: SolorzanoI've seen I can trade the strip of 3mLIBORs using CFDs or spread bets up to two years. Therefore I can do a 2y Swap, but not any longer.I think spread bet companies should offer spread bets on IRSs, and people could use it to hedge their long-term liabilities. Or pure especulation.Yes, you can trade Eurodollar/Euribor/Short Stg futs for shorter-dated maturities. You can also try using the swapnote futures (2y, 5y and 10y for and $), but liquidity might be an issue.

Solorzano · March 5th, 2009, 4:57 pm

Swapnote futures on EUR and USD?, where can I find them?

Martinghoul · March 5th, 2009, 5:47 pm

QuoteOriginally posted by: SolorzanoSwapnote futures on EUR and USD?, where can I find them?Check here: Euronext - Swapnote