Tradeweb Markets Inc (NASDAQ:TW), an electronic trading platform for rates, credit, equities and money markets, today announced that it completed the industry’s first fully electronic swaption termination.

The inaugural transaction took place between Citadel and Wells Fargo on Tradeweb’s Swap Execution Facility (TW SEF), with post-trade processing routed through OSTTRA’s MarkitWire platform.

The completion of this electronic transaction, an industry first, expands on Tradeweb’s current swaptions functionalities to address a long-standing industry challenge in the bilateral derivatives market; 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’ books prior to expiry.

Troy Dixon, Managing Director, Co-Head of Global Markets at Tradeweb, said:

“The 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. We’re excited to offer this capability to the market to help clients trade swaptions more efficiently.”

John Niccolai, Chief Operating Officer for Global Fixed Income at Citadel, said:

“We’re pleased to participate in the industry’s first swaption termination, a meaningful milestone that brings greater optionality and scalability to swaptions trading. This marks a tangible step forward in the modernization of these markets, and we look forward to partnering with Tradeweb and other market participants on future innovations that simplify trading these instruments.”

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’s 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, said:

“Tradeweb’s use of our post-trade processing capabilities further reinforces the need for automated, standardized workflows that align with clearing and settlement requirements while reducing operational risk. This is enabled by OSTTRA’s broad network reach and continuously expanding capabilities. We’re proud to partner with Tradeweb on efficient trade confirmation and support evolving industry requirements.”

Since 2005, Tradeweb has led transparency and innovation in the USD, EUR, and GBP interest rate swaps markets, helping advance the derivatives industry and improve efficiency across fixed income markets. Over that period, Tradeweb has expanded its derivatives offerings and now has 18 swaptions dealers live on the platform.