Tradeweb Markets (NASDAQ:TW) has introduced a new feature for institutional clients, allowing them to clear Japanese Yen swaps through the Japan Securities Clearing Corporation (JSCC), according to announcements made on Tuesday. This move is part of a broader plan by JSCC to replace its existing process between clearing houses and brokers in favor of supporting multilateral trading facilities (MTFs) and swap execution facilities (SEFs).
This change will allow clients to benefit from fully automated workflows, including pre-trade credit checks, execution, and clearing, leading to improved straight-through processing (STP). Previously, the confirmation process between the clearing house and clearing brokers following the execution of their clients' Yen swap transitions was described as 'time-consuming' and 'redundant'.
Enrico Bruni, head of Europe and Asia business at Tradeweb, emphasized the importance of Yen swaps in many institutional strategies. He noted that harmonizing these transactions with the real-time, STP nature of other instruments will create significant efficiencies for institutions that trade them.
As a primary central clearing counterparty for Yen derivatives products, JSCC aims to ensure its services are competitive and offer global investors convenient and enhanced access to Japanese markets. Yasuyuki Konuma, JSCC president and CEO, expressed his pleasure at working with Tradeweb to address institutional investor demand for fully electronic trading workflows in Yen swaps.
This recent development follows Tradeweb's expansion in the Asia Pacific region through the A$125 million acquisition of Yieldbroker last month. The firm continues to make strides in enhancing its services, responding to the needs of global hedge funds and real-money accounts seeking more connectivity, flexibility, and choice in Yen swap trading.
As of last month, JSCC recorded a year-on-year increase in its Yen swaps clearing volume – JPY 1,181 trillion. Its clearing services encompass listed cash and derivatives, over-the-counter (OTC) derivatives, and OTC Japanese government bond cash and repo transactions for both domestic and foreign entities.
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