Tradeweb and FXall have developed a solution – FX Swap Workflow – designed to help institutional investors trade emerging markets (EM) products more efficiently and take advantage of increasingly connected markets.
Developed with FXall, London Stock Exchange Group’s electronic platform for global currency products, FX Swap Workflow is a multi-asset digital solution that links trading workflows across local currency EM bonds and FX swaps via a single user interface. It allows mutual clients of Tradeweb and FXall to buy or sell an EM bond via Request-for-Quote (RFQ) or Request-for-Market (RFM) protocols on Tradeweb and hedge the local currency risk by executing an FX swap trade via direct connectivity to FXall.
Tradeweb’s head of Europe and Asia business, Enrico Bruni, said: “Facilitating the connection of our EM bond marketplace with FXall’s liquidity pool provides buy-side traders with access to enhanced and efficient local currency EM trading workflows.”
Clients are able to request prices from multiple dealers simultaneously on both legs of the transaction, helping to achieve better real-time transparency and prove best execution.
They also benefit from existing straight-through-processing (STP) channels, leading to greater automation and time-saving efficiencies.
Group head of FX, LSEG, Neill Penney said the integrated workflow replaces what used to be either a voice-based process or a sequence of workflows split between different trading desks.
“Greater collaboration between LSEG and Tradeweb has enabled us to offer our mutual clients an effective solution in FX Swap Workflow, with all the inherent advantages of electronic trading and our world-class liquidity pools.”
Morgan Stanley acted as the liquidity provider for the first transaction using Tradeweb’s FX Swap Workflow solution.
Commenting on the transaction, Volkan Dikmen, managing director at Morgan Stanley, said: “We are supportive of new initiatives that help markets evolve and become more streamlined, so we are proud to provide liquidity for the first-ever trade bringing together EM bond and FX swap markets.”
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