Tradeweb Receives CFTC Permanent Registration for its Swap Execution Facilities

Tradeweb Markets received approval for permanent registration from the Commodity Futures Trading Commission (CFTC) for its two wholly-owned swap execution facilities (SEFs), TW SEF and DW SEF. Previously, SEFs were operating under temporary registration status from the CFTC, with Tradeweb receiving temporary registration approval in September 2013. The Tradeweb SEFs for interest rate swaps and credit default swap indices provide market participants with flexibility and access to deep pools of liquidity to execute derivatives trades on regulated markets under Dodd-Frank.

Since the launch of its SEFs, Tradeweb has continued to offer functionality that allows participants to leverage new tools to source liquidity and optimize portfolios, which has supported the growth of our market share of buy side IRS trading from <5% before the trading mandate in February 2014 to more than 40% today. These include the rising use of tools like buy-side compression, helping to improve line-item management at derivatives clearing organizations (DCOs), and the adoption of products like market-agreed coupon (MAC) swaps, offering more standardization to ease the process of rolling positions. To date, more than $3 trillion via buy-side compression, and over $1 trillion in MAC swaps have been executed on TW SEF. In addition, we’ve seen a growth in block trading to TW SEF, as in October according to ClarusFT, approximately 75% of D2C block trading is taking place on our platform. 

Since launching in 2005, the Tradeweb derivatives platform has executed more than $22 trillion in notional volume and over 300,000 trades. More than 20 liquidity providers and over 400 institutional clients currently participate across our derivatives platforms for interest rate and credit default swap indices, accessing liquidity through request-for-quote (RFQ), request-for-market (RFM), click-to-trade (streaming prices) and order book trading protocols.