Tradeweb and LSEG’s FXall launch new emerging markets FX swap workflow solution

New multi-asset digital solution links trading workflows in local currency EM bonds and FX swaps; Morgan Stanley acted as a liquidity provider for the first transaction.

Tradeweb and the London Stock Exchange Group’s (LSEG) FXall have collaborated to launch a new FX swap workflow solution for local currency emerging markets.

The solution links trading workflows in local currency EM bonds and FX swaps through a single user interface (UI).

Mutual clients can now buy or sell an emerging markets bond via Tradeweb’s request for quote (RFQ) or request for market (RFM) protocols. Users can then hedge the local currency risk by executing an FX swap trade via direct connectivity to FXall.

Users can request prices from multiple dealers simultaneously on both legs of the transaction. They also benefit from existing straight-through-processing (STP) channels, Tradeweb said.

The announcement follows news in June last year that Tradeweb and FXall were set to team up to develop solutions that link trading workflows in emerging markets currency swaps and emerging markets bonds – including hedging capabilities through execution and straight-through-processing workflows.

Read more – FXall and Tradeweb Markets to collaborate on emerging market hedging solutions

“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,” said Enrico Bruni, head of Europe and Asia Business, Tradeweb.

“Clients trading EM products can now take advantage of markets that are increasingly interlinked, while also benefitting from seamless execution and STP. This latest innovation underpins our commitment to creating solutions that cater to the needs of our EM clients, and help them move risk more efficiently.”

Morgan Stanley acted as a liquidity provider in the first transaction.

“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,” said Volkan Dikmen, managing director at Morgan Stanley.

LSEG acquired FXall as part of its $27 billion Refinitiv deal completed in 2021.