Tradeweb launches swaptions trading on SEF

The first swaption was executed earlier this year by Garda Capital Partners.

Tradeweb has launched swaptions trading on its swap execution facility (SEF) with eight dealers already live and another four in the process of onboarding.

The launch means swaptions traders can use request-for-quote, placing various liquidity providers in competition with each other, and can access two-way markets with request-for-market functionality.

President of Tradeweb, Billy Hult, explained the launch offers a step forward with more efficient and transparent price discovery.

“Clients who utilise Tradeweb will benefit from a streamlined experience that allows them to access more competitive pricing quickly and easily,” he added.

Garda Capital Partners, an alternative asset manager providing fixed income investment strategies, executed the first electronic swaption on the SEF at the end of the third quarter this year.

Sean Hu, portfolio manager at Garda Capital Partners, commented the platform delivers valuable two-way price transparency and an efficient service for executing swaptions trades.

“Electronic trading has increased our operational efficiency with vanilla rates derivatives, and it's a logical step to benefit from the same advantages with our swaptions business,” Hu said.

Tradeweb launched its derivatives platform in 2005 and has more than $46 trillion in notional volume through more than 640,000 trades.

Over 40 liquidity providers and more than 470 institutional customers currently trade interest rate swaps, credit default swaps and credit default swap indices on the SEFs.