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Tradeweb and LSEG’s FXall collaborate to launch FX Swap Workflow Solution for local currency emerging markets bonds 

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Tradeweb Markets Inc has announced the launch of a new solution designed to help institutional investors trade Emerging Markets (EM) products more efficiently. Developed in collaboration with FXall, Tradeweb’s FX Swap Workflow is a multi-asset digital solution linking trading workflows in local currency EM bonds and FX swaps through a single user interface. 

The new FX Swap Workflow solution aims to allow mutual clients of Tradeweb and FXall to buy or sell an EM bond via the Request-for-Quote (RFQ) or Request-for-Market (RFM) protocols on Tradeweb and then seamlessly hedge the local currency risk by executing an FX swap trade via direct connectivity to FXall. FX Swap clients will able to request prices from multiple dealers simultaneously on both legs of the transaction, and also to benefit from existing straight-through-processing (STP) channels, leading to greater automation and time-saving efficiencies. 

“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,” says Enrico Bruni, Head of Europe and Asia Business, Tradeweb. “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.” 

“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,” says Neill Penney, Group Head of FX, LSEG. “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.” 

Morgan Stanley has acted as the liquidity provider for the first transaction using Tradeweb’s FX Swap Workflow solution. Commenting on the transaction, Volkan Dikmen, Managing Director at Morgan Stanley, says: “We are supportive of new initiatives that help markets evolve and become more streamlined, so we are proud to provide liquidity for the first-ever trade bringing together EM bond and FX swap markets.” 

Tradeweb aims to offer global EM cross-product execution with comprehensive solutions across both bond and derivatives markets. Product scope includes EM IRS, CNY IRS via Swap Connect, hard and local currency bonds, portfolio trading for EM hard currency, EM credit derivatives, and CNY cash bonds via Bond Connect and CIBM Direct. More than 50 liquidity providers are currently supporting hard currency Asia, CEEMEA and LATAM bonds, many of which are also sending pre-trade streams and axes to facilitate smart dealer selection. Clients are able to trade EM bonds across 21 local currencies, with 11 more in the pipeline. 

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