Tradeweb Markets SEFs to Go Live on October 2

The Tradeweb Markets TW SEF and DW SEF platforms will be live on October 2 for credit default swap indexes and interest rate swaps. Recently, the U.S. Commodity Futures Trading Commission (CFTC) has extended the applicability of Swap Execution Facility (SEF) rules for customers that may be trading on our SEFs until November 1. As a result, regardless of customers’ on boarding status with our SEFs, it will be business as usual for our existing market participants trading swaps in credit and rates on our SEFs. Pre-SEF contracts will continue to be in effect until November 1 for all participants. 

Customers will not be subject to the SEF rulebooks during this time, and can continue working to onboard with Tradeweb Markets’ SEFs from an operational perspective. Existing, non-SEF agreements with Tradeweb Markets will be grandfathered until November 1, when new agreements and the SEF rulebook will apply. 

All U.S. persons trading on Tradeweb will be directed to trade onto a Tradeweb Markets SEF on October 2, and all trades will be reported to the Swap Data Repositories (SDRs) and can be routed to Derivatives Clearing Organizations (DCOs) for clearing. 

Tradeweb Markets will continue to work closely with customers to complete the on boarding process ahead of November 1 and ensure a smooth transition to SEF trading. Please find a breakdown below of how Tradeweb customers will continue to trade swaps after the SEFs go live on October 2 through November 1: 

Onboarding 

Existing pre-SEF documentation will be used until November 1. 

Trading 

Customers will have access to SEF functionality. 

Reporting 

All trades on SEFs will be reported to SDRs. 

Clearing 

Market participants can utilize existing trade workflow.

No pre-trade credit check is required by the SEF, but may be required by a Futures Commission Merchant (FCM).

If a trade does not clear, it must be re-submitted as a new trade on the same terms.

Tradeweb will update market participants with additional information and insight on new guidance for trading on the TW SEF and DW SEF as it becomes available.