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Tradeweb Markets Inc . (NASDAQ:TW), a prominent operator of electronic marketplaces, has received approval from the U.S. Securities and Exchange Commission (SEC) for its swap execution facility, TW SEF LLC, to operate as a security-based swap execution facility (SBSEF).
The SEC’s endorsement is in line with the newly established Regulation SE, which requires platforms that facilitate the trading or execution of security-based swaps (SBS) to register with the SEC.
Elisabeth Kirby (NYSE:KEX), Managing Director and Head of Market Structure at Tradeweb, remarked on the significance of this development, emphasizing the enhancement of transparency it brings to institutional single-name credit default swaps (CDS) markets. Tradeweb’s position as a pioneer in electronic derivatives trading and its role in advancing the credit markets align with regulatory initiatives aimed at improving market transparency, efficiency, and liquidity.
Tradeweb has been a driving force in the derivatives industry since 2005, introducing several innovations to the EUR, GBP, and USD interest rate swaps markets. These include the first electronic swap compression trade and the first fully electronic SOFR swap spread trade. The company’s multilateral trading facility (MTF), launched in 2007, added transparency for clients trading swaps in the EU and UK.
In response to the Dodd-Frank Wall Street Reform and Consumer Protection Act, Tradeweb established TW SEF in 2013 to comply with mandates for certain swaps to be centrally cleared and traded on regulated platforms. TW SEF has grown into a leading marketplace, offering institutional clients enhanced trading efficiency and liquidity.
TW SEF has achieved a dominant position in the vanilla swaps market, with over $150 trillion traded in 2024, accounting for 52% of the industry-wide SEF volume.
The facility also reported an average daily volume of over $590 billion in 2024, serving a broad client base that includes more than 57 liquidity providers and over 1,000 institutional clients. Tradeweb’s global derivatives trading volumes remained robust in 2024, with an average of $783.3 billion traded daily in rates derivatives.
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