Growth in Passive Investing and Bond ETFs Spurs
Latest Innovation in Electronic Portfolio Trading
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today announced it has introduced Trade at Close
functionality for electronic portfolio trading.
U.S. and European clients of Tradeweb are now able to
electronically execute portfolio trades at end-of-day prices,
enabling them to more efficiently manage what are often their
largest and most critical credit trades. Tradeweb began rolling out
Trade at Close functionality in July 2021, with nearly $1.4 billion
(bn) in trading facilitated by September month-end.
Chris Bruner, Managing Director and Head of U.S. Institutional
Fixed Income at Tradeweb, said: “As passive investment trends fuel
interest in fixed income ETFs, the ability to electronically trade
a portfolio of bonds at a single closing price has never been more
important. Portfolio trading provides clients with surety of
execution, the ability to transfer very significant risk, and
protection from information leakage, and expanding its
functionality further to incorporate end-of-day trading will help
more of our clients digitize some of their largest trades.”
Passive funds typically trade at end-of-day prices to minimize
tracking error to their underlying benchmarks. Similarly, investors
rebalancing their portfolios after an inflow or outflow, or those
investors seeding a new fund, will also tend to trade at the close
to limit their exposure to intraday volatility. Certain active
investors looking to capitalize on end-of-day dealer positions will
trade opportunistically at the same time.
An electronic portfolio trading solution tailored for these
market participants allows for the movement of significant flow
based on reference prices, and for those clients to benefit from
straight-through processing and innovations unique to Tradeweb.
These include solutions like AiPrice, which provides real-time
prices for nearly 25,000 corporate bonds, and Multi-Client Net
Spotting, which nets hedging activity across Tradeweb clients
spotting at the same time. In the first three quarters of 2021, net
spotting services have saved Tradeweb clients more than $16
million.
Ted Husveth, Managing Director of U.S. Credit at Tradeweb,
added: “We’ve collaborated with our clients all the way through our
design and launch of portfolio trading, and this has informed so
many of our successive enhancements to the protocol, from the
introduction of competitive quoting in October 2019 to trading at
the close. We have a robust roadmap ahead of us, and are excited to
adapt our technology further as we approach the new year.”
Electronic Portfolio Trading at Tradeweb
Investors around the world already use Tradeweb’s electronic
portfolio trading tools intraday to move significant risk in one
transaction, with one counterparty, for one price. Globally,
clients trading High Grade, High Yield and Emerging Market credit
have traded $416.9bn since Tradeweb launched portfolio trading in
January 2019, of which $227.5bn was executed in 2021 by September
month-end. In the U.S., Tradeweb estimates market-wide portfolio
trading accounts for as much as 5.3% of High Grade TRACE totals for
September 2021.
Tradeweb is a critical destination for global credit trading. In
the last four years, the firm’s share of U.S. Investment Grade
TRACE has more than tripled to 21.0% in September 2021, while U.S.
High Yield TRACE has more than quadrupled to 9.5%. This is
complemented further by bond ETF trading: in the first three
quarters of the year, the Tradeweb ETF platform handled more than
$220bn of institutional volume in fixed income ETF trading
globally. In addition, Tradeweb also plays a central role in
emerging market fixed income trading with ADV of $7bn in the first
three quarters of 2021.
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets. Founded in 1996, Tradeweb provides access to markets, data
and analytics, electronic trading, straight-through-processing and
reporting for more than 40 products to clients in the
institutional, wholesale and retail markets. Advanced technologies
developed by Tradeweb enhance price discovery, order execution and
trade workflows while allowing for greater scale and helping to
reduce risks in client trading operations. Tradeweb serves
approximately 2,500 clients in more than 65 countries. On average,
Tradeweb facilitated more than $970 billion in notional value
traded per day over the past four fiscal quarters. For more
information, please go to www.tradeweb.com.
Forward-Looking Statements This release contains
forward-looking statements within the meaning of the federal
securities laws. Statements related to, among other things, our
outlook and future performance, the industry and markets in which
we operate, our expectations, beliefs, plans, strategies,
objectives, prospects and assumptions and future events are
forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed under the heading “Risk Factors”
in documents of Tradeweb Markets Inc. on file with or furnished to
the SEC, may cause our actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. In particular, preliminary average
variable fees per million dollars of volume traded are subject to
the completion of management’s final review and our other financial
closing procedures and therefore are subject to change. Given these
risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements contained in this release are not guarantees of future
performance and our actual results of operations, financial
condition or liquidity, and the development of the industry and
markets in which we operate, may differ materially from the
forward-looking statements contained in this release. In addition,
even if our results of operations, financial condition or
liquidity, and events in the industry and markets in which we
operate, are consistent with the forward-looking statements
contained in this release, they may not be predictive of results or
developments in future periods.
Any forward-looking statement that we make in this release
speaks only as of the date of such statement. Except as required by
law, we do not undertake any obligation to update or revise, or to
publicly announce any update or revision to, any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211014005529/en/
Media Contact Hannah Randall Akeel, Tradeweb +1 646 939
6198 Hannah.RandallAkeel@Tradeweb.com
Investor Contact Ashley Serrao, Tradeweb + 1 646 430 6027
Ashley.Serrao@Tradeweb.com
Tradeweb Markets (NASDAQ:TW)
Historical Stock Chart
From Apr 2024 to May 2024
Tradeweb Markets (NASDAQ:TW)
Historical Stock Chart
From May 2023 to May 2024