As part of their efforts to enhance clients’ trading and clearing workflows, Eurex Clearing, a leading global central counterparty, and Tradeweb Markets, a leading global provider of fixed income, derivatives and ETF marketplaces, announced they have established a direct connection for the clearing of over-the-counter (OTC) interest rate products. The connection will create significant workflow and execution efficiencies for buy- and sell-side firms using the services of both Tradeweb and Eurex Clearing, thus achieving straight-through processing (STP) benefits and ultimately improving market infrastructure.
Eurex Clearing uses the functionality of Approved Trade Sources (ATS) for trade registration of OTC interest rate products. The addition of Tradeweb to the Eurex ATS infrastructure enables Tradeweb clients and liquidity providers to directly submit their interest rate swap (IRS) trades for clearing to Eurex Clearing’s OTC CCP. The first trade on the Tradeweb IRS platform to be successfully cleared using this direct connectivity was executed between Union Investment and Citigroup Global Markets.
“For Eurex Clearing, the connection with Tradeweb is another building block in its efforts to offer an attractive EU27 solution for clearing OTC IRS products,” said Matthias Graulich, Member of the Eurex Clearing executive board.
“As a leading IRS marketplace, Tradeweb is focused on delivering streamlined, lower latency workflows, while simultaneously offering clients flexibility and choice in their clearing counterparty selection in any environment,” said Enrico Bruni, head of Europe and Asia business at Tradeweb.
“The direct connectivity between Tradeweb and Eurex provides us with a more robust and cost-effective way to submit IRS transactions for clearing, thus helping us achieve better results for our clients,” said Christoph Hock, head of multi-asset trading at Union Investment.