Tradeweb Sees Increase in Electronic MAC Swap Trading on TW SEF

As the derivatives industry continues its progression toward trading on SEFs, electronic trading of Market Agreed Coupon (MAC) swaps is on the rise, according to Tradeweb data.

MAC swaps, which became a required transaction on February 21, 2014, have a series of preset terms that include start and end dates, coupons and maturities. According to the International Swaps and Derivatives Association (ISDA), MAC swaps are designed to further improve transparency and promote liquidity in the interest rate swap marketplace. They are expected to enhance the ability of market participants to utilize portfolio compression thereby reducing notional amounts outstanding.

12 market makers are currently supporting liquidity for MAC swaps trading on the Tradeweb TW SEF, with several more liquidity providers scheduled to join the platform soon. 

Tradeweb provides clients with efficient and flexible trading protocols for electronic derivatives trading on its SEFs. These services include compliant trade execution and processing, post-trade analytics, ongoing performance reports and dedicated support from market managers and client support desks.

Stay tuned to building better markets for additional updates on the growing liquidity and evolving functionality in electronic derivatives trading.

For more information on trading MAC Swaps, contact Tradeweb.