The information division of ICAP Plc (LON:IAP), ICAP Information Services (IIS) and the CME Group (NYSE:CME) have announced a partnership with The Beast Apps Group. The company was designated with the design and delivery of a real-time market data and analytics tool named RapidRV.
The solution is designed to provide market participants with the capability to analyze relative value in real-time and identify arbitrage opportunities between the over-the-counter (OTC) and exchange-based futures markets.
RapidRV is built on The Beast Apps platform, which is a tool specifically designed to deliver high-speed market data and has a real-time operating analytics engine.
Clients will be able to view live quotes of futures prices on the CME Group in tandem with OTC derivatives and US Treasury securities pricing data from ICAP Information Services’ GovPX and SwapPX products.
With the data side by side, the software will facilitate traders in identifying arbitrage opportunities between OTC and futures markets.
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When arbitraging, traders are purchasing and selling the same asset in order to realize profits from price differences. The strategy is taking advantage of differences in prices of different trading venues.
“CME Group is pleased to partner with ICAP and The Beast Apps to bring our customers this innovative analytics tool,” said Sean Tully, CME Group senior managing director of financial and OTC products. “We’re always looking at new ways to improve upon our customer experience and make our highly liquid futures markets more efficient and accessible for all types of participants.”
The RapidRV tool displays data in real-time and provides calculators to determine relative values and hedge ratios between various OTC markets displayed on electronic market places, which ICAP provides access to along with the CME Group futures contracts. These can be CBOT Deliverable Swap Futures, CME Eurodollar Futures and CBOT US Treasury Futures on one side and Interest Rate Swaps and US Treasuries on the other.
CEO of The Beast Apps, Vinayek Singh, said in the announcement, “The Beast Apps brings its unique package of cloud-based delivery and unprecedented speed to the RapidRV product. All the analytics are fast, but the ability to deliver the complex Swaption vol/premium matrix in real time showcases that speed across all devices.”
The solution will be available to clients on a monthly subscription basis, including data fees which ICAP charges and the CME Group’s exchange fees.