This surge in activity, reflecting a 114% increase in delta, is taking place against the backdrop of pending U.S. and European regulation. The shift reflects not only greater activity by clients in volatile market conditions but an increasing number of companies active on the Tradeweb platform.

Final rules on derivatives trading in the U.S. under the Dodd-Frank Act are expected in 2012. Once implemented, trading of most swaps will need to take place on a swap execution facility (SEF) or exchange. Tradeweb intends to register as a SEF as soon as allowed. Similar proposals are expected from European regulators as part of the Markets in Financial Instruments Directive (MiFID) and European Markets Infrastructure Regulation (EMIR) discussions.

Central clearing and mandatory post-trade reporting are also required under the proposed U.S. rules. Tradeweb has links in place to all the major derivatives clearing houses and has already announced a series of industry first, regulation-ready trades.

"Regulation is accelerating the transition of derivatives trading to more efficient markets," said Lee Olesky, CEO of Tradeweb. "Market participants are starting to take the steps needed to comply with the underlying principles of market reform, even when faced with uncertain timing for implementation."

"Markets feed off a constant supply of liquidity. In the six years since we introduced multi-dealer electronic trading of swaps, we've seen an increasing level of engagement from dealers and buy-side clients on Tradeweb," said Billy Hult, President of Tradeweb. "It's been the driving force behind the growth of electronic trading across the industry."

While electronic trading of interest rate swaps is rapidly increasing in advance of transatlantic regulation, the trend has been growing since Tradeweb introduced electronic multi-dealer trading of interest rate swaps in 2005. Average daily notional trading volume for Tradeweb's multi-dealer global interest rate swap platfoorm now exceeds $10 billion.