The US Securities and Exchange Commission (SEC) has approved
Tradeweb Markets Inc.’s (Nasdaq: TW) application to register its swap execution
facility, TW SEF LLC, as a security-based swap execution facility (SBSEF) under
Regulation SE.
SEC Approves TW SEF for CDS Trading
“This regulatory approval represents a significant step
forward in fostering more transparency for institutional single-name CDS
markets,” Elisabeth Kirby, Managing Director, Head of Market Structure at
Tradeweb said.
The approval follows new SEC requirements that mandate
trading platforms facilitating security-based swaps (SBS) to register as either
an SBSEF or a national securities exchange. With this designation, TW SEF can
now facilitate institutional trading of single-name credit default swaps (CDS)
under the updated regulatory framework.
TW SEF Accounts for 52% SEF Volume
TW SEF currently accounts for 52% of industry-wide swap
execution facility (SEF) volume. In 2024, it reported over $150 trillion in
total traded volume and an average daily volume of $590 billion. Tradeweb’s
broader derivatives business recorded an average daily volume of $783.3 billion
in rates derivatives.
Tradeweb Launches MTF, Supports Derivatives Trading
Tradeweb has been active in electronic derivatives trading
since 2005. The company launched its multilateral trading facility (MTF) in
2007 for swaps trading in the EU and UK. In 2013, it introduced TW SEF in
response to U.S. regulations requiring certain swaps to be cleared and traded
on regulated platforms.
“As a pioneer in electronic derivatives trading and a
leading electronic trading platform for credit markets, Tradeweb is uniquely
positioned to work with regulators on initiatives that enhance transparency,
efficiency and liquidity in these markets while ensuring compliance with
evolving regulatory standards,” Kirby added.
Tradeweb, FTSE Russell Expand Treasury Pricing Partnership
Earlier, Tradeweb
and FTSE Russell expanded their partnership to include US Treasury closing
prices, aiming to improve pricing transparency and reliability, as reported by Finance Magnates.
The two organizations have introduced the Tradeweb FTSE US
Treasury Closing Prices benchmarks, designed to enhance accuracy in US Treasury
pricing. This expansion adds to existing benchmarks for UK Gilts and European
Government Bonds, incorporating data from Tradeweb’s platform. The methodology
captures executable bid and offer prices, including mid-prices and transaction
costs, for all asset classes.
This article was written by Tareq Sikder at www.financemagnates.com.
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