Tradeweb Executes Its First Swap Connect Transactions In Partnership with CFETS

Tradeweb Markets Inc., a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, announced the completion of its first transactions on China's newest electronic trading channel for CNY interest rate swaps (IRS), known as Swap Connect. Currently, Tradeweb is the only international electronic trading platform supporting both request-for-quote (RFQ) and click-to-trade (CTT) execution protocols.

Tradeweb, which had earlier partnered with the China Foreign Exchange System (CFETS) to develop and launch Northbound Bond Connect, CIBM Direct Link, and Southbound Bond Connect, has once again joined forces with CFETS to globalize CNY IRS with the delivery of Swap Connect.

Enrico Bruni, Head of Europe and Asia Business at Tradeweb, commented: "Tradeweb's role in connecting China's financial markets with the rest of the world has achieved another significant milestone with the launch of Swap Connect. As global investors' exposure to Chinese onshore bonds has grown in recent years, so has their need for effective tools that help them manage risk. Similar to its Bond Connect sibling, Swap Connect embodies the virtues of electronic trading in terms of efficiency, transparency and liquidity."

Zhang Yi, President of CFETS, said: "The launch of Swap Connect is a new step towards the opening up of China's bond market to the rest of world, and we are very pleased to collaborate with Tradeweb again to jointly support overseas investors' participation in the domestic financial derivatives market through Northbound Swap Connect in a convenient and efficient manner. CFETS will continue to optimize various mechanisms to provide efficient and convenient financial infrastructure services for international investors to participate more deeply in China's financial market and meet their diversified trading requirements."

Swap Connect officially launched on this Monday (May 15)​, During the first phase of Swap Connect, offshore investors can access mainland China's interbank CNY IRS market via the Northbound route. Upon joining Tradeweb for Swap Connect trading, clients have the option to use either the RFQ or CTT electronic execution protocols and can clear trades through HKEX OTC Clear (OTCC) under Hong Kong's international familiar legal framework.

In addition, Deutsche Bank was selected​ last week to be a market maker for Northbound Swap Connect.