ICAP Information Services and CME Group have partnered with The Beast Apps Group to create and deliver RapidRV, a real-time market data and analytics tool designed to provide market participants with the capability to analyze relative value opportunities between OTC and exchange-based futures markets.

The product, which was announced earlier this week at FIA Boca, offers pre-trade price transparency to market participants and also calculates relative value between OTC markets and exchange-traded futures markets.

“We have been working with the CME and Beast Apps to put together a data product,” Michael Kirby, director of ICAP Information Services (IIS), Americas, told Markets Media. “It’s a browser based data product that combines real-time market data from Icap for the over-the-counter markets in cash treasuries, interest rate swaps and swap options, with market data from CBOT and CME for deliverable swap futures, treasury futures and eurodollar futures.”

Users can view live streaming futures prices from CME Group alongside OTC derivatives and U.S. Treasury securities pricing from Icap Information Services’ GovPX and SwapPX products. This combination enables users to better analyze the behavior and relative value opportunities between the OTC and futures markets.

“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, in a release. “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.”

RapidRV is built on The Beast Apps platform, a high -speed market data delivery tool and analytics engine. “RapidRV is unique in the way that it brings the exchange and SEF world together helping decipher the interest rate products in the worlds of Exchanges and IDBs and compare them such that these make sense,” said Vinayek Singh, CEO of The Beast Apps.

RapidRV includes real-time displays and calculators to view market data, relative values and hedge ratios between various OTC markets and CME Group futures contracts.

“If a subscriber wanted to execute a dollar swap and hedge it with treasury futures, RapidERV would show the hedge ratios and calculate how many treasury futures you would need to buy or sell,” said Kirby. “It would calculate out the number of futures contracts required to hedge your swap position.”

The product displays and continually calculates opportunities between futures contracts and OTC products, and also displays hedge ratios for multiple hedging strategies in addition to real time calculation of the “cheapest to deliver” Treasury security for CBOT Treasury Futures.

FCMs can share information displayed on RapidRV with customers to illustrate relative value opportunities. “Assuming you’re an account manager and you want to share a trading idea with one of your accounts, you can set up a session with your account and interact on the RapidRV platform. Either subscriber in the interactive session can modify variables, and the other will see the changes in real time,” Kirby said.

IIS aggregates market data that’s generated by various Icap voice and electronic brokerage units in FX, fixed income, interest rate derivatives, credits, energy, and money markets. “IIS distributes nearly one hundred thousand data instruments and generates between 2.5 to 3 million updates per day,” said Kirby.

Featured image via apinan/Dollar Photo Club