The US Securities and Exchange Commission (SEC) has approved Tradeweb Markets Inc.'s (Nasdaq: TW) application to register its swap execution facility, TW SEF LLC, as a security-based swap execution facility (SBSEF) under Regulation SE.

SEC Approves TW SEF for CDS Trading

“This regulatory approval represents a significant step forward in fostering more transparency for institutional single-name CDS markets,” said Elisabeth Kirby, Managing Director and Head of Market Structure at Tradeweb.

The approval follows new SEC requirements that mandate trading platforms facilitating security-based swaps (SBS) to register as either an SBSEF or a national securities exchange. With this designation, TW SEF can now facilitate institutional trading of single-name credit default swaps (CDS) under the updated regulatory framework.

TW SEF Accounts for 52% of SEF Volume

TW SEF currently accounts for 52% of industry-wide swap execution facility (SEF) volume. In 2024, it reported over $150 trillion in total traded volume and an average daily volume of $590 billion. Tradeweb’s broader derivatives business recorded an average daily volume of $783.3 billion in rates derivatives.

Tradeweb Launches MTF, Supports Derivatives Trading

Tradeweb has been active in electronic derivatives trading since 2005. The company launched its multilateral trading facility (MTF) in 2007 for swaps trading in the EU and UK. In 2013, it introduced TW SEF in response to U.S. regulations requiring certain swaps to be cleared and traded on regulated platforms.

“As a pioneer in electronic derivatives trading and a leading electronic trading platform for credit markets, Tradeweb is uniquely positioned to work with regulators on initiatives that enhance transparency, efficiency and liquidity in these markets while ensuring compliance with evolving regulatory standards,” Kirby added.

Tradeweb, FTSE Russell Expand Treasury Pricing Partnership

Earlier, Tradeweb and FTSE Russell expanded their partnership to include US Treasury closing prices, aiming to improve pricing transparency and reliability, as reported by Finance Magnates.

The two organizations have introduced the Tradeweb FTSE US Treasury Closing Prices benchmarks, designed to enhance accuracy in US Treasury pricing. This expansion adds to existing benchmarks for UK Gilts and European Government Bonds, incorporating data from Tradeweb’s platform. The methodology captures executable bid and offer prices, including mid-prices and transaction costs, for all asset classes.