Tradeweb, a leading global provider of fixed income and derivatives markets, today announced the completion of the first interest rate swap trade by a client to be electronically executed and cleared in the U.S.
The U.S. dollar-denominated swap transaction was executed on the Tradeweb platform between a U.S.-based asset manager and Deutsche Bank, with Deutsche Bank acting as the clearing member. The trade was then cleared by CME Clearing, and is the first transaction which could be considered swap execution facility (SEF)-ready under the expected regulatory framework soon to be defined and finalized by the CFTC and SEC.
"This trade is an evolutionary step forward for the derivatives markets," said Lee Olesky, CEO of Tradeweb. "As more clients adopt the central clearing model in anticipation of new regulatory requirements, we are happy to lead the way in providing what we anticipate will be a SEF-ready derivatives marketplace."
"We are pleased to have participated in this trading milestone as financial markets prepare for the new regulatory environment under Dodd-Frank," said Michele Faissola, Managing Director and Head of Rates Trading at Deutsche Bank. "Today's trade signals our commitment to continued innovation in swap market execution strategies."
"As the world's premier clearing venue for global derivatives markets, we are pleased to help demonstrate the future of centrally cleared swaps with Tradeweb's first electronically executed trade cleared through CME Clearing," said Kim Taylor, President, CME Clearing. "We look forward to working with Tradeweb to bring safety and soundness to the interest rate swap market."
Clients have been trading interest rate swaps electronically on Tradeweb since 2005. Since the launch more than five years ago, the notional amount of interest rate derivatives traded on Tradeweb has exceeded $5 trillion from more than 65,000 trades.