Virtu Financial, Inc. [NASDAQ: VIRT] disclosed that its RFQ-Hub has introduced electronic workflow for Swaptions on CDS. Virtu believed that its sophisticated technology, intuitive multi-asset workflows, and distinction in client service have modernized the process of swaptions trading on CDS.
Moreover, the advanced spirit has also triggered the development of swaptions on IRS and, combined with RFQ-hub’s new MTF status in ETFs, underscores Virtu’s dedication to providing multi-asset class solutions for all clients. Using the RFQ-hub platform, swaptions traders can now take advantage of 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.
Furthermore, German-based Union Investment which is a leading European asset manager with €425B AUM, successfully agreed on the first-fully electronic swaptions on CDS RFQ via Virtu’s RFQ-hub in 1H 2021, which consequently resulted in an OTC trade executed in that instrument. Moreover, RFQ-hub combines asset managers and market makers to help electronically deliver aggregated and competitive liquidity, simplify workflow, and enhance pricing with a focus on equity and fixed income listed and OTC derivatives, structured products, and ETFs.
Additionally, it has been disclosed that Union’s and Virtu’s RFQ-hub team cooperated 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.