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  • Tradeweb Response to U.S. Draft Legislation on OTC Derivatives


    Tradeweb, a leading global provider of online markets for institutional investors and dealers, is broadly supportive of the objectives of the draft OTC derivatives legislation proposed by the Treasury. These initiatives include the desire to create: greater transparency; a more harmonized regulatory framework; central clearing and electronic trading of standardized derivatives contracts.

    In particular, Tradeweb notes the clear mandate that standardized swaps must be traded electronically, either on a "designated contract market" or an "alternative swap execution facility". Tradeweb believes that electronic trading in the over-the-counter markets will drive increased efficiency and transparency for institutional clients. Electronic platforms, such as Tradeweb, offer the most flexible, proven trading model for the OTC markets.

    Tradeweb looks forward to ongoing discussion on the draft bill, including greater clarity on what is required to become an alternative swap execution facility and the ongoing obligations of such facilities.

    "The message from Treasury is clear. It is looking for a more streamlined and transparent derivatives industry. Electronic trading clearly answers these concerns and Tradeweb looks forward to playing a major role in helping the market adopt these important measures," said Lee Olesky, CEO of Tradeweb. "In addition, we welcome the opportunity to link to, and partner with, clearing houses to ensure that the overall marketplace operates efficiently."

    It is important that these central counterparty and clearing organizations offer equal access to multiple trading platforms. This strikes the right balance between fixing systemic problems and encourages market innovation that broadens access to credit for governments, people and businesses.

    Electronic OTC derivatives markets are still at an early stage in their adoption, but have already seen vigorous growth in trading activity. Tradeweb was a pioneer when it launched its regulated electronic OTC derivatives markets in 2005. Since then:

    • Clients have executed more than 36,000 trades
    • Approximately $4 trillion in contracts have been traded by clients
    • 130 institutional clients are actively trading on the platform
    • Dealers have been providing real-time pricing since the onset, offering clients significantly increased levels of market transparency

    About Tradeweb 

    Tradeweb is a leading provider of online markets and a pioneer in the development of electronic trading and trade processing. The company provides services in the fixed income, derivative, and equity markets to clients in more than 50 countries. Since 1998, Tradeweb has operated a global fixed income and derivatives trading network, which harnesses the distribution of the major investment banks with over 2,000 institutional clients. Tradeweb Retail provides a trading and sales application to fixed income brokers and traders. With its expansion into the equity markets, Tradeweb is leveraging AutEx, the industry leader for 40 years in providing indications of interests, and Tradeweb Routing Network, a global FIX network with more than 8,000 connections between over 1,000 firms.

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