Tradeweb Markets Inc. (NASDAQ:TW) announced that it has completed its first transactions on Swap Connect, an electronic trading channel in China for CNY interest rate swaps (IRS).
This makes it the only international electronic trading platform that supports both request-for-quote (RFQ) and click-to-trade (CTT) protocols.
Tradeweb and the China Foreign Exchange System (CFETS) have worked together in the past to create Northbound Bond Connect, CIBM Direct Link and Southbound Bond Connect. Now they have joined forces again to make CNY Interest Rate Swaps (IRS) more accessible worldwide with Swap Connect.
Head of Europe and Asia Business at Tradeweb, Enrico Bruni, said:
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.
President of CFETS, Zhang Yi, 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.
At first, Swap Connect will link foreign investors to China’s CNY IRS market via a Northbound route. If investors use Tradeweb for Swap Connect trading, they can place orders through RFQ or CTT, and will clear trades through HKEX OTC Clear under the Hong Kong legal system.
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