Gilt futures are deliverable derivatives contracts based on baskets of
Historically, invoice spreads would be traded using the London Interbank Offered Rate (LIBOR) as the pricing basis for the swaps leg of the transaction. However, with LIBOR due to lose its regulatory support by the end of 2021,
“The launch of SONIA invoice spread trading on our platform adds transparency and efficiency to the execution of these packages,” said Bhas Nalabothula, Head of European Interest Rate Derivatives at Tradeweb. “Together with J.P. Morgan, we continue to build on our track record of collaborating with clients to advance electronic trading of interest rate swaps.”
The shift to alternative rates is well underway, but with LIBOR being embedded in most firms’ operating models, there are still many challenges facing financial markets. In the GBP space, Tradeweb is in close collaboration with institutions in the sterling swaps market to ensure continued progress and innovation towards electronic SONIA trading. In
Tradeweb has also been working with market participants to offer additional tools and data that will help move sterling swaps trading to SONIA. For example, jointly with J.P. Morgan, Tradeweb has been developing solutions that address the market’s needs, including the launch of electronic execution for the actively-traded SONIA swap vs. gilt future packages.
“We are pleased to be the first liquidity provider for electronic SONIA invoice spread trading on Tradeweb,” said
Tradeweb is focused on bringing further liquidity and transparency to RFR markets globally across currencies, including USD SOFR and EUR €STR. Clients are able to send trade enquiries to multiple dealers, putting them in competition to price orders via the request-for-quote (RFQ) or request-for-market (RFM) protocols. They can also upload their existing IBOR portfolios directly into Tradeweb’s list trading tool and convert them into RFRs in a streamlined process that helps them achieve best execution.
Tradeweb has been bringing greater transparency to the interest rate swaps marketplace since 2005, helping to reduce risk and create more competitive and efficient markets. Numerous market firsts were all executed on Tradeweb – the first electronic swap compression trade, electronic swaptions trading, electronic cleared inflation swap and multi-asset package trades – helping to move the derivatives industry forward.
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the expected timing, availability, and performance of the Tradeweb SONIA invoice spread trading, our guidance, including 2020 guidance, and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements. In addition, statements herein relating to the COVID-19 pandemic, the potential impacts of which remain inherently uncertain, are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of
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