Tradeweb Completes First Swap Trade by an FCM on Behalf of a Client

In an OBO swap transaction, an introducing agent executes trades directly on a SEF on behalf of their clients using the TW SEF interface. The customer is disclosed to the participants that receive a request for quote (RFQ), and the introducing agent expresses the client's instructions in all of the interaction on the SEF. For DMA trades on TW SEF, the introducing agent does not transact on behalf of customers, but supports clients' access to the SEF GUI to enter RFQs and orders through electronic access to the SEF.

Tradeweb recently enabled agency access to TW SEF, providing market participants with sponsored access to liquidity in derivatives. In addition to OBO trading on TW SEF, customers may also gain direct market access (DMA) supported by an introducing agent on TW SEF, with connectivity to independent software vendors (ISVs) scheduled to go live in the coming months.

"The execution of this first ‘on behalf of' transaction demonstrates the important progress in providing clients effective means to achieve compliance with impending regulatory mandates, and we are pleased to partner with Tradeweb to deliver this service," says John Dabbs, managing director at Credit Suisse's US FCM group.

Tradeweb will soon also support agency access to TW SEF through ISVs. In this model, customers gain indirect access to a SEF through an embedded SEF GUI or front-end portal provided by the ISV and/or introducing agent.