The London Stock Exchange Group's fixed income business is to begin trading electronic interest rate swaps, as the company attempts to take advantage of new rules that will force over-the-counter derivatives onto transparent electronic venues.

The exchange group said this morning that its fixed income franchise MTS is set to launch a new venue, MTS Swaps, in the fourth quarter this year. The platform, which will allow buy side firms to trade interest rate swaps electronically, has received initial support from a series of banks which will provide liquidity. These include BNP Paribas, Commerzbank AG, Crédit Agricole Corporate and Investment Bank, HSBC, Lloyds Bank Commercial Banking, Societe Generale Corporate and Investment Banking, and UBS.