Tradeweb Enhances Dealer-to-Client Repo Marketplace with First Cleared Repo Transaction

Today Tradeweb facilitated the first cleared repo transaction using LCH’s new RepoClear service, and is the only trading venue that has institutional investors trading via the clearing house. The inaugural trade was executed between Insight Investment, acting for a UK pension fund it manages, and NatWest Markets. Participating in cleared transactions means that clients are more likely to benefit from better repo rates due to the netting opportunities offered by cleared trades.

Enrico Bruni, head of Europe and Asia business at Tradeweb, said:  “Today’s launch marks an important step forward for the dealer-to-client repo market, building further on the significant operational efficiencies electronic trading provides for participants.  As the leading marketplace for electronic dealer-to-client repo trading, we are focused on improving client workflows, and enabling the first cleared repo transaction is a natural extension of the robust offering Tradeweb provides.”

The adoption of electronic trading is accelerating in all sectors of the financial markets. Repo market participants have been benefiting from full electronic integration and its advantages on the Tradeweb European dealer-to-client RFQ platform for nearly two years. This latest enhancement to our repo marketplace is expected to move even more client flow to electronic execution. 

Since its launch, the platform has seen considerable growth in volume, as it captures all the benefits of electronic execution, while allowing dealers to identify balance-sheet-efficient trades, and use fewer resources. Meanwhile, buy-side clients are able to better fulfil their repo strategy thanks to swift and efficient price discovery, as well as access to an audit trail that helps them prove best execution.

Tradeweb’s market leading electronic solution to the dealer-to-client repo market mirrors the existing voice and message-based trading process, while enabling faster execution and simplifying post-trade processing. Our request-for-quote model allows for multiple quotes to be viewed simultaneously and allows negotiation of rates and haircuts. 

In August 2017, Securities Lending Times published an interview with Tradeweb’s Enrico Bruni on the rise of electronic repo trading. Click here for the full article.