Tradeweb Markets Inc., a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, announced that the U.S. Securities and Exchange Commission (SEC) has approved the registration of its swap execution facility, TW SEF LLC, as a security-based swap execution facility (SBSEF) under Regulation SE.

This milestone follows the SEC’s new Regulation SE requirements mandating that any trading system or platform facilitating the trading or execution of security-based swaps (SBS) among participants, as delineated in the requirements, register with the SEC as either an SBSEF or a national securities exchange. With this approval, TW SEF is now eligible to operate as an SBSEF, thereby enabling institutional clients to trade single-name credit default swaps (CDS) via TW SEF in compliance with this new regulatory framework.

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

Since 2005, Tradeweb has been a leader in bringing greater transparency and innovation to the EUR, GBP and USD interest rate swaps markets, advancing the derivatives industry forward with numerous firsts such as the first electronic swap compression trade, electronic swaptions trading, electronic cleared inflation swap, multi-asset package trades and first fully electronic SOFR swap spread trade. In 2007, Tradeweb launched its multilateral trading facility (MTF), bringing further transparency to clients trading swaps in the EU and UK. In 2013, following the implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Tradeweb launched TW SEF to align with new regulatory standards requiring that certain swaps be centrally cleared and traded on a regulated platform. TW SEF has since evolved into a leading marketplace, offering institutional clients enhanced efficiency and liquidity in derivatives trading.

Today, TW SEF is the largest swap execution facility for vanilla swaps, with over $150 trillion (tn) traded in 2024, or 52% of industry-wide SEF volume, based on data from Clarus FT. In 2024, TW SEF facilitated over $590 billion (bn) in average daily volume, serving more than 57 liquidity providers and over 1,000 institutional clients trading interest rate swaps, single-name default swaps and credit default swap indices. In 2024, Tradeweb reported strong volumes in global derivatives trading with an average of $783.3bn in rates derivatives traded daily.

Source: Tradeweb