Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic markets for interest rates, credit, equities and money markets, today announced that it has completed the first fully electronic order-to-market (RFM) swap package trade.
Citadel and Barclays were counterparties to the trade, which was recently executed on the Tradeweb Swap Execution Facility (TW SEF).
This trademark execution is an industry first, enabling institutional clients on the TW SEF to request and receive a two-way purchase, rather than a price based on one direction, for a range of swaps and swaps in a single electronic quote. This is particularly beneficial to derivatives market participants as it enhances transparency while protecting customer intent and sharing potentially sensitive or strategically valuable trading information exclusively between counterparties.
Troy Dixon, Managing Director, Co-Head of Global Markets at Tradeweb, said:
“This transaction marks the expansion of Tradeweb’s electronic trading capabilities into a previously untapped area of the interest rate market. As a global leader in electronic trading of interest rate derivatives, this is a significant step forward in the evolution of bilateral derivatives trading and the broader electronicization of the swaps and broader derivatives markets.”
Sabri El Jailani, Global Head of Rates Options Trading at Barclays, said:
“Barclays is delighted to participate in the first RFM swap package trade, a milestone in the digitization of the interest rate options market. This transaction reflects the growing momentum behind digitization in the global swaps market. Barclays is proud to be part of the evolution for greater transparency and automation for our clients across all regions.”
John Niccolai, Chief Operating Officer for Citadel Global Fixed Income, said:
“Electronic swap trading is an important first step in the evolution of electronic OTC rate options, which will increase transparency, improve execution workflow, reduce counterparty risk and enhance liquidity, making this a product easier to access and trade. We are pleased to use the service and look forward to working with Tradeweb and other participants in the wider market.”
A swap gives participants the ability to enter into an interest rate swap in the future at a predetermined interest rate. An important part of the interest rate derivatives landscape, swaps offer investors the ability to take different views on future interest rate movements as well as market volatility. Electronic protocols such as RFM have proven to be of significant value in the interest rate swap landscape, especially during periods of market volatility. RFM allows clients to maintain control over trading intent while benefiting from transparency, customization and flexibility.