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Institutional clients executing Japanese Yen swaps on Tradeweb Markets’ multilateral trading facilities (MTFs) and swap execution facilities (SEFs) can now clear their transactions via the Japan Securities Clearing Corporation (JSCC).
Clients will now be able to benefit from fully automated workflows on Tradeweb’s MTFs and SEFs from pre-trade credit checks to execution and clearing.
It will also enable users to achieve straight-through processing (STP) improvements, according to Tradeweb.
The announcement follows JSCC’s decision to support MTF and SEF trading, which Tradeweb says replaces a previously ‘time-consuming’ and ‘redundant’ confirmation process between the clearing house and clearing brokers subsequent to the execution of their clients’ Yen swap transitions.
JSCC provides clearing services for listed cash and derivatives, over-the-counter (OTC) derivatives and OTC Japanese Government Bond cash as well as repo transactions for both domestic and foreign financial institutions.
Commenting on the announcement, Enrico Bruni, head of Europe and Asia business at Tradeweb, says: “Yen swaps form an important part of many institutional strategies, and harmonising these transactions with the real-time, STP nature of the other instruments in their portfolios will create significant efficiencies to the institutions that trade them.”
Yasuyuki Konuma, JSCC president and CEO, adds: “We are pleased to be working together with Tradeweb to address institutional investor demand for fully electronic trading workflows in Yen swaps.
“As a primary central clearing counterparty for Yen derivatives products, we are always focused on ensuring our services are competitive, and offer global investors convenient and enhanced access to Japanese markets.”
“Enabling investors to hedge their JPY risk, while simultaneously enjoying the benefits of trading electronically, can only add tailwinds to their strongly growing interest in Yen assets,” comments Taichi Shibuya, head of Japan at Tradeweb.
