Tradeweb Connects to Eurex for OTC Interest Rate Clearing

The direct connection of both firms will achieve straight-through processing benefits for their clients.

Eurex Clearing, a leading central counterparty clearing (CCP), announced this Thursday that it has established a direct connection with Tradeweb Markets, a global provider of fixed income, derivatives and ETF marketplaces.

According to the statement released by Eurex, the direct connection will facilitate the clearing of over-the-counter (OTC) interest rate products. For buy- and sell-side firms using the services of both Tradeweb and Eurex Clearing, the connection will increase workflow and execution efficiencies, achieving straight-through processing (STP) benefits.

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Matthias Graulich a Member of the Executive Board of Eurex Clearing AG
Matthias Graulich
Source: Eurex Clearing

Commenting on the connection, Matthias Graulich, Member of the Eurex Clearing executive board said: “for Eurex Clearing, the connection with Tradeweb is another building block in its efforts to offer an attractive EU27 solution for clearing OTC IRS products.”

“As a leading IRS marketplace, Tradeweb is focused on delivering streamlined, lower latency workflows, while simultaneously offering clients flexibility and choice in their clearing counterparty selection in any environment,” continued Enrico Bruni, the head of Europe and Asia business at Tradeweb.

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So how does it work? For the trade registration of OTC interest rate products, Eurex Clearing uses the functionality of Approved Trade Sources (ATS). Under the agreement, Tradeweb has been added the Eurex ATS infrastructure.

Union Investment and Citigroup Global Markets execute first trade

This allows Tradeweb’s customers and providers of liquidity to submit their interest rate swap (IRS) trades directly to Eurex Clearing’s OTC CCP for clearing. The first of such trades (made on the Tradeweb IRS platform and cleared by Eurex Clearing) was executed between Union Investment and Citigroup Global Markets.

Christoph Hock head of multi-asset trading at Union Investment
Christoph Hock
Source: Worldwide Business Research

“The direct connectivity between Tradeweb and Eurex provides us with a more robust and cost-effective way to submit IRS transactions for clearing, thus helping us achieve better results for our clients,” added Christoph Hock, head of multi-asset trading at Union Investment.


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