Tradeweb and Japan Securities Clearing Corporation collaborate on Yen swaps

Move follows the recent broadening of Tradeweb’s Asia Pacific footprint through the A$125 million acquisition of Yieldbroker last month.

Tradeweb clients are now able to clear Yen swaps – executed on its multilateral trading facilities (MTFs) and swap execution facilities (SEFs) – via the Japan Securities Clearing Corporation (JSCC). 

The news follows JSCC’s plan to replace their existing process between clearing houses and brokers respectively following execution of clients’ Yen swap transactions, in favour of supporting MTF and SEF trading. 

According to the businesses, this will save time as clients benefit from fully automated workflows from Tradeweb’s offerings, which include pre-trade credit checks, execution and clearing – benefitting from straight-through processing improvements.

Enrico Bruni, head of Europe and Asia business at Tradeweb, highlighted the important of Yen swaps across various institutional strategy and how this move will serve to increase efficiency for those that trade them. 

“This is the latest example of Tradeweb and JSCC being responsive to the needs of our clients, both global hedge funds and real-money accounts, around more connectivity, flexibility and choice in Yen swap trading,” he said.

Read more: Fireside Friday with… Tradeweb’s Enrico Bruni

JSCC clearing services encompasses listed cash and derivatives, OTC derivatives and OTC Japanese government bond cash and repo transactions (domestic and foreign entities) and as of last month recorded a year-on-year increase of its Yen swaps clearing volume – JPY 1,181 trillion.

Yasuyuki Konuma, JSCC president and chief executive, said: “We are very pleased to be working together with Tradeweb to address institutional investor demand for fully electronic trading workflows in Yen swaps.

“As a primary Central Clearing Counterparty (CCP) for Yen derivatives products, we are always focused on ensuring our services are competitive and offer global investors convenient and enhanced access to Japanese markets.”

Tradeweb has made other recent strides regarding its Asia Pacific footprint in recent months, completing the acquisition of Yieldbroker for A$125 million in August, having entered into a definitive agreement to acquire the Australia-based business in May.