Interdealer Swaps Markets Edge Toward Electronification
RTX was recently featured in Traders Magazine on the role RTX is playing in modernization of the IRS market.
Despite being one of the largest and most critical markets in global finance, interdealer interest rate swaps (IRS) have remained an outlier in the digital transformation sweeping through trading desks. “It’s the biggest market no one really knows about,” said Christopher Jonns, Head of Markets at RTX and a veteran of the swaps brokerage world.
Unlike the visible evolution in equities or FX trading, the IRS market—especially the interdealer segment—has lagged behind in terms of automation. Voice remains dominant, driven in part by the complexity of products and the reliance on long-standing relationships. “The rates market is complicated,” Jonns explained.
“There are a lot of moving parts and non-standard structures—and that’s why the phone has remained so prevalent. Traders want flexibility. They want to be able to shift quickly. Until very recently, there was no viable electronic alternative,” he told Traders Magazine.
