Virtu’s RFQ-hub Launches Electronic Workflow for Swaptions on CDS

Rhea-AI Summary

Virtu Financial has launched a swaptions on CDS electronic workflow via its RFQ-hub platform, partnering with Union Investment, which manages €425B AUM. This initiative allows swaptions traders to enhance price discovery by electronically competing among multiple liquidity providers. The collaboration automates a previously manual process, streamlining workflows and improving trade documentation. CEO Rob Boardman emphasized Virtu’s commitment to technological innovation across multi-asset solutions. This electronic trading initiative aims to boost efficiency in asset management and enhance client service.

Positive

• Launch of swaptions on CDS electronic workflow enhances trading efficiency.
• Collaboration with Union Investment reflects strong client partnerships.
• RFQ-hub platform allows competitive price discovery and better documentation.

Negative

• None.

Union Investment and Virtu Financial collaborate to pioneer new swaptions electronic workflow

NEW YORK, Nov. 09, 2021 (GLOBE NEWSWIRE) -- Virtu Financial, Inc. (NASDAQ: VIRT), a leading global provider of financial services and products that leverages cutting edge technology to deliver innovative, transparent trading solutions to our clients and liquidity to the global markets, today announced the launch of a swaptions on CDS workflow in RFQ-hub, Virtu’s bilateral multi-asset and multi-dealer request for quote platform. German-based Union Investment, a leading European asset manager with €425B AUM, successfully negotiated the first-fully electronic swaptions on CDS RFQ via Virtu’s RFQ-hub in 1H 2021, which subsequently resulted in an OTC trade executed in that instrument.

Union’s and Virtu’s RFQ-hub team collaborated to automate the traditional voice and manual dominated swaptions on CDS workflow, a project which required the onboarding of sell side counterparties and technology integration with Union’s system architecture.

Using the RFQ-hub platform, swaptions traders can now leverage electronic request for quote workflows to put multiple liquidity providers in competition for efficient and transparent price discovery, automated audit trail and integration with risk management and other post-trade systems or processing. 

“It’s been a real process improvement–utilising Virtu’s RFQ-Hub to facilitate trading swaptions on CDS has allowed us to more easily document best execution, streamline our workflow with our counterparties and realise efficiency gains,” said Christoph Hock, Head of Multi Asset Trading, Union Investment.

“We are committed to helping our clients solve their challenges,” said Rob Boardman, CEO Virtu Financial EMEA. “Virtu’s advanced technology, intuitive multi-asset workflows and excellence in client service has streamlined the process of swaptions trading on CDS. That same innovative spirit has also sparked the development of swaptions on IRS and, coupled with RFQ-hub’s new MTF status in ETFs, underlines Virtu’s commitment to delivering multi-asset class solutions for all clients.”

Read our use case study: Breaking New Ground with an Electronic RFQ Process for Swaptions on Credit Default Swaps (CDS)>

RFQ-hub brings asset managers and market makers together to help electronically deliver aggregated and competitive liquidity, streamline workflow and improve pricing with a focus on equity and fixed income listed and OTC derivatives, structured products and ETFs.

For more information about Virtu’s workflow technology platforms and other execution tools, please visit our client solutions page at www.virtu.com or contact us at info@virtu.com.

About RFQ-hub
Virtu’s electronic bilateral request-for-quote (RFQ) platform for listed and OTC securities centralizes best price
discovery by connecting buy-side trading desks and portfolio managers with their liquidity providers. Integrated and detailed metrics provide insight and audit reporting for regulatory and compliance obligations.

About Virtu Financial
Virtu is a leading provider of financial services and products that leverages cutting-edge technology to deliver liquidity to the global markets and innovative, transparent trading solutions to its clients. Leveraging its global market making expertise and infrastructure, Virtu provides a robust product suite including offerings in execution, liquidity sourcing, analytics and broker-neutral, multi-dealer platforms in workflow technology.  Virtu’s product offerings allow clients to trade on hundreds of venues across 50+ countries and in multiple asset classes, including global equities, ETFs, foreign exchange, futures, fixed income and myriad other commodities.  In addition, Virtu’s integrated, multi-asset analytics platform provides a range of pre- and post-trade services, data products and compliance tools that clients rely upon to invest, trade and manage risk across global markets.

Contact:
Investor & Media Relations
Andrew Smith
investor_relations@virtu.com

FAQ

What is the new initiative launched by Virtu Financial?

Virtu Financial launched a swaptions on CDS electronic workflow via its RFQ-hub platform.

Who did Virtu Financial partner with for the new workflow?

Virtu Financial partnered with Union Investment, a leading European asset manager.

How does the RFQ-hub platform improve trading for swaptions?

The RFQ-hub platform automates the request for quote process, enhancing price discovery and streamlining workflows.

What are the benefits of the electronic workflow for swaptions trading?

The electronic workflow improves efficiency, documentation of best execution, and competition among liquidity providers.

What is Union Investment's asset under management?

Union Investment manages approximately €425 billion in assets.