Tradeweb Markets Inc., the electronic marketplace operator for rates, credit, equities and money markets, has launched FX Swap Workflow, a multi-asset solution designed to streamline the trading of Emerging Markets (EM) products for institutional investors. The product, developed in collaboration with LSEG’s electronic global currency platform, FXall, integrates trading workflows for local currency EM bonds and FX swaps within a unified user interface.
The FX Swap Workflow solution offers Tradeweb and FXall’s mutual clients the ability to purchase or sell an EM bond using the Request-for-Quote (RFQ) or Request-for-Market (RFM) protocols on Tradeweb, and to hedge the local currency risk by executing an FX swap trade through a direct link to FXall. By allowing clients to request prices from multiple dealers concurrently for both legs of the transaction, the solution aims to enhance real-time transparency and provide evidence of best execution, with STP integration further assisting automation and efficiency.
Enrico Bruni, Tradeweb’s Head of Europe and Asia Business, said: “Facilitating the connection of our EM bond marketplace with FXall’s liquidity pool provides buy-side traders with access to enhanced and efficient local currency EM trading workflows. Clients trading EM products can now leverage markets that are increasingly interconnected, while also benefitting from seamless execution and STP.”
Neill Penney, Group Head of FX at LSEG, added: “Greater collaboration between LSEG and Tradeweb has enabled us to offer our mutual clients an effective solution in FX Swap Workflow, with all the inherent advantages of electronic trading and our world-class liquidity pools.”
Liquidity for the inaugural transaction using FX Swap Workflow was provided by Morgan Stanley. Volkan Dikmen, Managing Director at Morgan Stanley, commented: “We are supportive of new initiatives that help markets evolve and become more streamlined, so we are proud to provide liquidity for the first-ever trade bringing together EM bond and FX swap markets.”
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