FXall and Tradeweb Markets have together announced a common project to develop hedging workflow solutions as part of an emerging markets offering that connects local bond and currency markets in a move towards more efficiency and liquidity.

FXall, which is now part of LSEG following the acquisition of Refinitiv from Thomson Reuters, is a leading electronic trading platform for global currency products.

Tradeweb Markets is also owned by LSEG (majority stake) and is a global operator of electronic marketplaces for rates, credit, equities and money markets.

FXall and Tradeweb Markets have come together to link trading workflows in emerging markets bonds and emerging markets currency swaps through a solution for institutional clients that includes enhanced hedging capabilities via seamless execution and straight-through-processing workflow.

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Neill Penney, Group Head of FX at LSEG, said: “This new solution is a powerful example of the opportunities LSEG and Tradeweb have to create value for financial market participants. By combining the world-class capabilities of FXall and Tradeweb, asset managers trading Emerging Markets Bonds will have access to a seamless workflow covering enhanced real-time pricing transparency, multi-asset trade execution, and a multi-jurisdiction regulatory infrastructure all within a single desktop application.”

Enrico Bruni, Managing Director, Head of Europe and Asia Business, Tradeweb, added: “Tradeweb is committed to addressing the complex needs of our emerging markets participants, which often involves linking different markets or liquidity pools to deliver the best possible solution. This collaboration between FXall and Tradeweb is really about digitizing a multi-asset workflow in order to make it more efficient and versatile for market participants.”

The announcement follows last week’s launch of electronic SOFR swaptions by Tradeweb. A swaption (also known as a swap option) trade allows participants the ability to opt into an interest rate swap contract. Swaptions provide traders with optionality and control as they transact and hedge in the OTC market. Swaption trades represent an important and growing segment of the interest rates derivatives market.

Tradeweb has been enhancing the derivatives trading space with the electrification of swaps and swaptions products, including swap compression trades, two-way market swap; swaption trade; cleared inflation swap; multi-asset package trade; cross-currency swap; European invoice spread trade; and SOFR swap spread trade.

Tradeweb introduced SOFT swaptions trading on the TW SEF platform to allow market participants a more efficient way to access market rates liquidity in SOFR following the global transition from LIBOR to SOFR at the end of 2021.