25 September 2017
Reporter: Stephanie Palmer

First RFQ inflation swap transactions executed on Tradeweb platform

Tradeweb has completed the first cleared inflation swap transactions using request-for-quote (RFQ) protocol, on its European Interest Rate Swap platform.

The platform can now aggregate inflation swaps liquidity on a single screen, allowing traders to request prices from several dealers simultaneously, to complete transactions more quickly and efficiently, and to meet transparency obligations under the second Markets in Financial Instruments Directive (MiFID II).

It also allows for straight-through processing (STP), and gives traders access to new solutions such as compression links.

The trade was executed by Legal & General Investment Management (LGIM) and cleared by LCH.

Enrico Bruni, head of European and Asian business at Tradeweb, said: “Our market-leading, global offering in interest rate derivatives is now even more comprehensive with the addition of inflation swaps.”

He added: “Buy-side firms look to Tradeweb to conduct their business in all major currency interest rate swaps, benefitting from both flexible and compliant solutions. By executing on our platform, clients can also rest assured that their pre- and post-trade transparency obligations under MiFID II are taken care of, thus avoiding unnecessary costs and implementation burdens.”

Philip Hunter, head of rate trading at LGIM, called the trade a “significant milestone for the inflation swaps market”.

He said: “The STP benefits of electronic execution, coupled with the improved price discovery achieved via the RFQ model satisfy the industry’s increasing need to streamline trading desk procedures, while simultaneously enabling buy-side firms to demonstrate best execution.”

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