Tradeweb Completes First Fully Electronic Swaption Termination

NEW YORK–(BUSINESS WIRE)–Tradeweb Markets, a leading electronic trading platform for rates, credit, equities and money markets, today announced that it completed the industry’s first fully electronic swaption termination. The inaugural transaction took place between Citadel and Wells Fargo on Tradeweb’s Swap Execution Facility (TW SEF), with post-trade processing routed through OSTTRA’s MarkitWire platform.

The completion of this electronic transaction, an industry first, expands on Tradeweb’s current swaptions functionalities to address a long-standing industry challenge in the bilateral derivatives market; the ability to efficiently manage and reduce existing swaption positions. Unlike cleared rates products such as swaps, swaptions cannot be easily compressed, meaning positions must be terminated or novated to be fully removed from clients’ books prior to expiry.

Troy Dixon, Managing Director, Co-Head of Global Markets at Tradeweb, said: “The completion of this transaction demonstrates how electronic innovation can simplify swaptions trading, enabling clients to streamline workflows, reduce gross notional exposure and consolidate large line items. We’re excited to offer this capability to the market to help clients trade swaptions more efficiently.”

John Niccolai, Chief Operating Officer for Global Fixed Income at Citadel, said: “We’re pleased to participate in the industry’s first swaption termination, a meaningful milestone that brings greater optionality and scalability to swaptions trading. This marks a tangible step forward in the modernization of these markets, and we look forward to partnering with Tradeweb and other market participants on future innovations that simplify trading these instruments.”

As part of this enhancement, Tradeweb introduced a new capability that allows clients to input a MarkitWire ID for an existing swaption directly into the Tradeweb platform. Tradeweb then retrieves the exact trade details from MarkitWire, matching the offsetting transaction to the client’s existing position and reducing the risk of transcription or trade booking errors. After the termination is agreed, Tradeweb automatically sends notification of the termination to MarkitWire, further increasing the post-trade confirmation speed.

Michael Wilshere, Commercial Head of Rates Trade Processing at OSTTRA, said: “Tradeweb’s use of our post-trade processing capabilities further reinforces the need for automated, standardized workflows that align with clearing and settlement requirements while reducing operational risk. This is enabled by OSTTRA’s broad network reach and continuously expanding capabilities. We’re proud to partner with Tradeweb on efficient trade confirmation and support evolving industry requirements.”

Since 2005, Tradeweb has led transparency and innovation in the USD, EUR, and GBP interest rate swaps markets, helping advance the derivatives industry and improve efficiency across fixed income markets. Over that period, Tradeweb has expanded its derivatives offerings and now has 18 swaptions dealers live on the platform.

About Tradeweb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale, retail and corporates markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 3,000 clients in more than 85 countries. On average, Tradeweb facilitated more than $2.6 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

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Contacts

Media contacts:
Daniel Noonan, Tradeweb
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Savannah Steele, Tradeweb
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Investor contacts:
Ashley Serrao, Tradeweb
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Sameer Murukutla, Tradeweb
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