TOKYO–(BUSINESS WIRE)–Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced that institutional clients executing Japanese Yen swaps on its Multilateral Trading Facilities (MTFs) and Swap Execution Facilities (SEFs) can now clear their transactions via the Japan Securities Clearing Corporation (JSCC).
The enhancement follows JSCC’s decision to support MTF and SEF trading, replacing a previously time-consuming and redundant confirmation (or take-up) process between the clearing house and Clearing Brokers subsequent to the execution of their clients’ Yen swap transactions. Instead, clients are now able to benefit from fully automated workflows on Tradeweb’s MTFs and SEFs – from pre-trade credit checks to execution and clearing – and achieve straight-through processing (STP) improvements.
“This is the latest example of Tradeweb and JSCC being responsive to the needs of our clients, both global hedge funds and real-money accounts, around more connectivity, flexibility and choice in Yen swap trading,” said Enrico Bruni, Head of Europe and Asia Business at Tradeweb. “Yen swaps form an important part of many institutional strategies, and harmonising these transactions with the real-time, STP nature of the other instruments in their portfolios will create significant efficiencies to the institutions that trade them.”
“We are very pleased to be working together with Tradeweb to address institutional investor demand for fully electronic trading workflows in Yen swaps,” said Yasuyuki Konuma, JSCC President & CEO. “As a primary Central Clearing Counterparty (CCP) for Yen derivatives products, we are always focused on ensuring our services are competitive, and offer global investors convenient and enhanced access to Japanese markets.”
Tradeweb facilitates both direct and indirect connectivity to clearing houses and links to middleware providers globally. JSCC provides clearing services for listed cash and derivatives, over-the-counter (OTC) derivatives and OTC Japanese Government Bond cash and repo transactions for both domestic and foreign financial institutions. The CCP is currently exempted from registration with the Commodity Futures Trading Commission (CFTC) as a Derivatives Clearing Organisation (DCO). Clearing volume of Yen swaps on JSCC reached JPY 1,181 trillion as of August 2023, exceeding the previous record of 2022 yearly total of JPY 1,111 trillion.
“I am confident that JSCC’s support of MTF and SEF trading will help our clients express their views in Japanese interest rate products much more efficiently,” said Taichi Shibuya, Head of Japan at Tradeweb. “Enabling investors to hedge their JPY risk, while simultaneously enjoying the benefits of trading electronically, can only add tailwinds to their strongly growing interest in Yen assets.”
Tradeweb launched derivatives trading in 2005 and has since become a leading marketplace in EUR, GBP and USD interest rates swaps (IRS). More than USD 78 trillion has been executed across Tradeweb’s IRS platforms in 2023 so far*. The firm introduced its first Japanese products – including Yen interest rate swaps – in 2008, and saw the industry’s first electronically-traded and JSCC-cleared Yen swap transaction by a Japanese bank in 2014. A year later, Tradeweb executed its first regulated Yen swap transaction on its Electronic Trading Platform (ETP) under Japan’s mandatory trading rules.
*January 2023 to end of August 2023
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $1.2 trillion in notional value traded per day over the past four quarters. For more information, please go to www.tradeweb.com
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. In particular, preliminary average variable fees per million dollars of volume traded are subject to the completion of management’s final review and our other financial closing procedures and therefore are subject to change. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.
Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.