Tradeweb completes first fully electronic swaption termination
12 February 2026 US
Image: Rohan_Katwe/stock.adobe.com
Tradeweb Markets has completed the industry鈥檚 first fully electronic swaption termination.
The transaction took place between Citadel and Wells Fargo on Tradeweb鈥檚 Swap Execution Facility (TW SEF), with post-trade processing routed through OSTTRA鈥檚 MarkitWire platform.
The completion of this electronic transaction expands on Tradeweb鈥檚 current swaptions functionalities to address a long-standing industry challenge in the bilateral derivatives market 鈥� the ability to efficiently manage and reduce existing swaption positions.
Unlike cleared rates products such as swaps, swaptions cannot be easily compressed, meaning positions must be terminated or novated to be fully removed from clients鈥� books prior to expiry.
Troy Dixon, managing director, co-head of Global Markets at Tradeweb, states: 鈥淭he completion of this transaction demonstrates how electronic innovation can simplify swaptions trading, enabling clients to streamline workflows, reduce gross notional exposure and consolidate large line items.鈥�
John Niccolai, chief operating officer for Global Fixed Income at Citadel, adds: 鈥淲e鈥檙e pleased to participate in the industry鈥檚 first swaption termination, a meaningful milestone that brings greater optionality and scalability to swaptions trading.
鈥淭his marks a tangible step forward in the modernisation of these markets, and we look forward to partnering with Tradeweb and other market participants on future innovations that simplify trading these instruments.鈥�
As part of this enhancement, Tradeweb introduced a new capability that allows clients to input a MarkitWire ID for an existing swaption directly into the Tradeweb platform.
Tradeweb then retrieves the exact trade details from MarkitWire, matching the offsetting transaction to the client鈥檚 existing position and reducing the risk of transcription or trade booking errors.
After the termination is agreed, Tradeweb automatically sends notification of the termination to MarkitWire, further increasing the post-trade confirmation speed.
Michael Wilshere, commercial head of rates trade processing at OSTTRA, says: 鈥淭radeweb鈥檚 use of our post-trade processing capabilities further reinforces the need for automated, standardised workflows that align with clearing and settlement requirements while reducing operational risk.
鈥淭his is enabled by OSTTRA鈥檚 broad network reach and continuously expanding capabilities.鈥�
The transaction took place between Citadel and Wells Fargo on Tradeweb鈥檚 Swap Execution Facility (TW SEF), with post-trade processing routed through OSTTRA鈥檚 MarkitWire platform.
The completion of this electronic transaction expands on Tradeweb鈥檚 current swaptions functionalities to address a long-standing industry challenge in the bilateral derivatives market 鈥� the ability to efficiently manage and reduce existing swaption positions.
Unlike cleared rates products such as swaps, swaptions cannot be easily compressed, meaning positions must be terminated or novated to be fully removed from clients鈥� books prior to expiry.
Troy Dixon, managing director, co-head of Global Markets at Tradeweb, states: 鈥淭he completion of this transaction demonstrates how electronic innovation can simplify swaptions trading, enabling clients to streamline workflows, reduce gross notional exposure and consolidate large line items.鈥�
John Niccolai, chief operating officer for Global Fixed Income at Citadel, adds: 鈥淲e鈥檙e pleased to participate in the industry鈥檚 first swaption termination, a meaningful milestone that brings greater optionality and scalability to swaptions trading.
鈥淭his marks a tangible step forward in the modernisation of these markets, and we look forward to partnering with Tradeweb and other market participants on future innovations that simplify trading these instruments.鈥�
As part of this enhancement, Tradeweb introduced a new capability that allows clients to input a MarkitWire ID for an existing swaption directly into the Tradeweb platform.
Tradeweb then retrieves the exact trade details from MarkitWire, matching the offsetting transaction to the client鈥檚 existing position and reducing the risk of transcription or trade booking errors.
After the termination is agreed, Tradeweb automatically sends notification of the termination to MarkitWire, further increasing the post-trade confirmation speed.
Michael Wilshere, commercial head of rates trade processing at OSTTRA, says: 鈥淭radeweb鈥檚 use of our post-trade processing capabilities further reinforces the need for automated, standardised workflows that align with clearing and settlement requirements while reducing operational risk.
鈥淭his is enabled by OSTTRA鈥檚 broad network reach and continuously expanding capabilities.鈥�
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 网爆吃瓜 Finance Times
