Tradeweb, a global provider of online markets, has completed electronic links to major derivatives clearing houses for OTC derivatives trades.
The connectivity will allow institutional clients to fully automate their workflow on Tradeweb from trade execution through clearing, enabling them to better manage operational, systemic and market risk.
To date, Tradeweb has integrated with ICE Trust and ICE Europe via ICE Link, and CME Clearing for the clearing of credit default swaps (CDS). In addition to these interfaces built for its CDS business, Tradeweb has further developed connectivity to MarkitSERV, a global, electronic OTC derivative trade processing company.
Similar to CDS, clients will be able to communicate through existing links to the platform’s MarkitWire service for interest rate swaps (IRS), for onward transmission to LCH.Clearnet’s SwapClear facility.
In addition to being able to clear trades through Tradeweb’s links to central counterparties, over 380 global clients are already using a trading application programming interface (API) to link their internal systems with Tradeweb’s electronic markets. Tradeweb has direct relationships with more than 20 of the system vendors and a number of smaller and proprietary systems.
Lee Olesky, CEO of Tradeweb, said: “The industry is at the threshold of a fully-integrated electronic trading workflow for OTC derivatives. The development of these links represents an important step towards a more automated marketplace, which will reduce systemic risk and promote transparency, efficiency and prevention of market abuse that global regulators and market participants are seeking.”
Clive de Ruig, global head of ICE Processing, said: “ICE Link is pleased to work with Tradeweb to provide customers with a seamless flow from electronic execution to clearing. Tradeweb can help grow dealer and buyside participation through ICE, reinforcing our role in bringing the leading risk management and clearing solutions to the CDS market.”
Kim Taylor, president of CME Clearing, said: “The combination of Tradeweb’s dealer-to-client e-trading platform with CME Clearing offers clients greater choice for transacting their OTC business. As a result, our clearing solution becomes even more compelling to the world’s leading asset managers as well as other clients around the world.”
Jeff Gooch, CEO of MarkitSERV, said: “We are pleased to link with Tradeweb to provide market participants with a more efficient workflow for trading and processing OTC derivatives.”
Roger Liddell, chief executive of LCH.Clearnet, said: “There has been a rapid increase in the OTC derivatives trading activity recently and the need to improve operational efficiencies has become more marked. Together with Tradeweb we are addressing market demands for more flexible and automated solutions in processing interest rate swap trades.”