The leading global operator of electronic marketplaces for rates, credit, equities, and money markets, Tradeweb is offering clients a choice of best-of-breed vendor access to life-cycle cost analytics, including initial margin, collateral, clearing fees, brokerage, and trading costs. As a result, Tradeweb clients will be better able to minimize trade life-time costs and prove the best execution.
The offering is the result of its collaboration with two leading margin optimization providers, Cassini Systems and OpenGamma. By integrating margin optimization analytics with its interest rate derivatives platform, Tradeweb will seamlessly provide institutional investors with pre-trade initial margin calculations, as well as real-time insight into trade execution options, such as optimal
clearing venue and clearing broker selections.
Enrico Bruni, head of Europe and Asia business at Tradeweb, commented: “Tradeweb continues to connect markets, this time by bringing together our award-winning rates derivatives marketplace and pre-trade analytics and margin calculation specialists. Our strategic alliance with Cassini and OpenGamma will equip investors with flexibility and choice when selecting the best way to satisfy their margin and best execution requirements.”
Liam Huxley, CEO and Founder of Cassini, said: “We are delighted to be joining forces with Tradeweb and, for the first time, to be giving traders enhanced access to best execution of interest rate derivatives, which now also captures post-trade costs and capital impact. Thanks to our alignment, Tradeweb clients will be able to use Cassini’s unique analytics toolset to calculate the full lifetime cost of a trade.”
Peter Rippon, CEO of OpenGamma, added: “Our collaboration with one of the leading marketplaces for interest rate derivatives is a major step in providing capital efficiency to the buy-side. By adding our renowned margin analytics onto Tradeweb’s execution platform, firms will have access to unique CCP optimization models that help them address the funding challenges created by the new regulation.”
The final two phases of Uncleared Margin Rules (UMR) in September 2020 and 2021 will bring into scope a significant number of new counterparties, creating increased demand for tools that help evaluate the true lifetime cost of trading.
The integration of margin analytics within the execution workflow will help buy-side firms make smarter investment decisions, able to check the margin impact of interest rate swap trades on their portfolios pre-trade.
Christoph Hock, head of multi-asset trading at Union Investment, stated: “The ability to connect to margin optimization solutions on Tradeweb will allow us to further improve managing costs efficiently across the trade life-cycle, a key component of our investment process. We look forward to using this innovative solution, which will help us ensure a well-informed, cost-efficient, and regulatory compliant trading workflow ahead of key industry reforms.”