Tradeweb Markets has launched a new feature to connect repo and interest rate swaps (IRS) to enhance execution workflow in these markets. Electronic marketplaces for interest rates, credit, stocks and money markets promised to drive efficiency in how institutional clients navigate these markets through the new offering.
Connecting repo markets and the IRS
According to the press release, the integration between the two markets aims to respond to the increasing volatility in financial markets resulting from changing expectations surrounding central bank policies. To address this challenge, the platform has integrated overnight index swap curves into the repo trade negotiation process to provide institutional clients with insights into pricing competitiveness across different currencies and maturities.
“By connecting our repo and swaps platforms, we are transforming what were previously manual, disconnected and time-consuming processes into efficient, time- and cost-saving processes,” said Nicola Danis, Co-Head of International Developed Markets at Tradeweb. “Digital Workflows is the only multi-asset platform Like Tradeweb we can connect markets in this way, and we are proud to provide another industry first for the benefit of our clients.
After executing a long-term fixed-rate repo trade on Tradeweb, buy-side traders can manage their interest rate exposure through an electronic workflow. By pre-populating an OIS ticket with trade details and sending a Request a Quote inquiry to Tradeweb's extensive network of liquidity providers, Tradeweb seeks to simplify processing and reduce operational risk.
Increase in trading volumes
In April, Tradeweb Markets recorded a 69.1% year-on-year increase in trading volumes. This rise, which reached a total volume of US$41.9 trillion and an average daily volume of US$1.94 trillion, reflects a significant rise in market activity. The company attributed this remarkable growth to the expansion in adoption of its products and services across various sectors.
One notable aspect of Tradeweb's performance in April was the notable increase in the daily value volume of US government bonds, which rose 70.7% year-on-year to $205.3 billion. This expansion reflects the broader growth trend across all client segments, indicating strong demand for US government bonds within the market.
In the money markets sector, repurchase agreement ADV rose 39.4% year-on-year to $598.2 billion. An increase in client activity on Tradeweb's electronic repo trading platform has led to a rise in global repo activity. Factors such as quantitative tightening and increased collateral supply have reportedly contributed to the shift of assets from the Federal Reserve's reverse repo facility into money markets.
This article was written by Jared Kirroy at www.financemagnates.com.
