Tradeweb and FXall, London Stock Exchange Group’s (LSEG) electronic trading platform, have launched a new multi-asset digital solution to facilitate trading in emerging markets (EM).
Targeted at institutional investors, Tradeweb’s FX Swap Workflow aims to link trading workflows in local currency EM bonds and foreign exchange (FX) swaps through a single user interface.
The solution will allow mutual clients of Tradeweb and FXall to trade EM bonds through Tradeweb’s request-for-quote (RFQ) or request-for-market (RFM) protocols, and then hedge the local currency risk by executing an FX swap trade through FXall.
Users will be able to request prices from several dealers on both legs of the transaction process and will also have access to existing straight-through-processing channels.
Morgan Stanley acted as the liquidity provider for the first transaction using Tradeweb’s FX Swap Workflow solution.
Tradeweb is majority-owned by LSEG and currently offers EM bonds in 21 local currencies.
Neill Penney, group head of FX at LSEG, says: “We are excited to provide our customers with 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 and our world-class liquidity pools”
Enrico Bruni, head of Europe and Asia business at 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.”
