Bradley Hayes

Bradley Hayes, on behalf of Bill Katz, followed up on tokenization, asking about its potential impact on the swaps market and whether smart contract functionality poses a risk to volume.

Answer

CFO Sara Furber explained that smart contracts primarily reduce friction in the swaps market's post-execution lifecycle, streamlining affirmations, confirmations, and clearing. She stated that this functionality helps further electronification and trading velocities, rather than disintermediating or negatively impacting Tradeweb's value in the market.

Bradley Hayes, on behalf of Bill Katz from TD Cowen, asked about the potential impact of increasing asset tokenization and smart contract functionality on the swaps market, specifically regarding risks to trading volume.

Answer

CFO Sara Furber explained that smart contracts primarily reduce friction in the post-execution phase of the swaps market by streamlining affirmations, confirmations, and clearing. She believes this will further electronification and increase trading velocities without disintermediating Tradeweb's market value or posing a risk to trading volumes.