Tradeweb Markets Inc. (NASDAQ:TW), a global operator of online markets for interest rates, credit, equities and money markets, today announced that it has launched innovative features that bridge the company’s repurchase agreements (repo) and interest rate swap (IRS) product offerings. to improve customer execution workflows in these markets.
Amid higher money market volatility due to revised expectations for central bank policy actions, traders are increasingly referring to overnight index swap (OIS) curves when assessing the pricing of fixed rate repos.
Tradeweb makes OIS curves available during the repo trade negotiation process, helping institutional clients assess the price competitiveness of different repo rates in different currencies and durations. These OIS spreads are generated for all GBP, EUR and USD trades on the Tradeweb repo platform and will reflect the exact term of each repo trade, leveraging the off swap curves on the IRS platform.
In addition, immediately after executing a long-term fixed rate repo trade on Tradeweb, market-side traders can manage their interest rate exposure in a fully electronic workflow, thereby achieving direct processing and reducing operational risk. At the click of a button, they can pre-populate a corresponding OIS ticket with the details of the completed repo transaction – including the start and end date, direction and cash amount – and send a RFP to its extensive network Tradeweb. liquidity providers on the IRS platform.
Nicola Danese, Co-Head of International Developed Markets at Tradeweb, said:
“By connecting repo and swaps platforms, we are transforming what used to be manual, disconnected and time-consuming processes into efficient, time- and cost-effective digital workflows. Only a multi-asset platform like Tradeweb can connect the markets in this way and we are proud to deliver another industry first for the benefit of our clients.”
Nick Sheffield, Portfolio Manager in the Money Markets team at Insight Investment, said:
“In today’s active interest rate environment, Tradeweb provides us with key information to execute a fixed rate repo transaction. We seek technology that can help improve investment outcomes for clients and welcome innovations that support the speed of decision-making and execution processes.”
Tradeweb offers a seamless and efficient end-to-end solution for repo trading in 24 currencies, providing institutional clients with access to liquidity from 47 dealers worldwide. The platform sees an average of 3,300 transactions and over $340 billion in fictitious trading volume per day.
Meanwhile, Tradeweb’s IRS marketplace has been bringing more transparency to barter transactions since 2005.