Tradeweb, FXall EM Bond FX Swap Solution Goes Live

Tradeweb says it has gone live with its FX Swap Workflow product, build in collaboration with LSEG’s FXall, that links workflows in emerging market bonds and FX swaps through a single user interface.

The new service, which was first announced in the middle of 2022, allows mutual clients to buy or sell an EM bond via the Request-for-Quote (RFQ) or Request-for-Market (RFM) protocols on Tradeweb and then hedge the local currency risk by executing an FX swap trade via direct connectivity to FXall. 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, the firms add.

Morgan Stanley acted as the liquidity provider for the first transaction on the solution, and Volkan Dikmen, managing director in the bank’s Rates business, says, “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.”

Enrico Bruni, head of Europe and Asia business, Tradeweb, adds, “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 trading EM products can now take advantage of markets that are increasingly interlinked, while also benefitting from seamless execution and STP. This latest innovation underpins our commitment to creating solutions that cater to the needs of our EM clients, and help them move risk more efficiently.”

Finally, Neill Penney, group head of FX at LSEG, says, “[This provides] an enhanced multi-asset integrated workflow, replacing 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.”