Tradeweb Markets has rolled out new functionalities for its electronic portfolio trading tool, increasing flexibility and efficiency for institutional clients.
Trade on spread at market close: This is an important step forward in credit trading; it is particularly useful to clients deploying passive investment strategies that benefit from executing trades at the market close, and also offers clients more flexibility to arrange these trades in advance of the close. Tradeweb estimates that roughly 30% of all portfolio trades are executed using closing prices, presenting an opportunity to further electronify more of these large and critical trades at the close. This enhancement follows Tradeweb’s Trade at Close functionality announced in October 2021, and allows clients to benefit from the vast scale of the Tradeweb network by building on previous innovations including: Tradeweb Ai-Price, which provides real-time prices for nearly 25,000 corporate bonds, and Tradeweb’s Multi-Client Net Spotting (MCNS), which nets hedging activity across Tradeweb clients spotting at the same time.
Increased line item capacity: Tradeweb has increased the capacity of its portfolio trading tool to more than 2,000 line items. This increase strengthens Tradeweb’s ability to put multiple dealers in competition and to transfer large amounts of risk in a single portfolio trade. Portfolio trading has experienced record growth at Tradeweb, with average daily volume (ADV) of $1.4 billion (bn) in the first quarter of 2022 and an increase of over 50% YoY in the number of clients using our tool. Since launching portfolio trading in 2019, Tradeweb has seen global portfolio trading ADV on the Tradeweb credit platform grow more than 725%.
Chris Bruner, Head of U.S. Institutional Fixed Income at Tradeweb, said: “We collaborate closely with our clients to seek out new ways to enhance the portfolio trading process, building off of previous Tradeweb innovations like Tradeweb Ai-Price and MCNS that our clients have already integrated into their trading workflow. Targeted enhancements like these are driven in part by the evolving needs of our market and our clients’ willingness to embrace these innovations.”
As the first platform to offer electronic portfolio trading for corporate bonds, Tradeweb continues to build technologies that improve efficiency, transparency and accuracy in the corporate bond market. These enhancements come as Tradeweb continues to experience significant growth across the credit platform, with average daily volume in credit trading globally at Tradeweb averaging $33.2bn in first quarter 2022. In the last four years, the firm’s share of U.S. High Grade TRACE has more than doubled to 22.5% in first quarter 2022, while U.S. High Yield TRACE has more than tripled to 10.9%.
Source: Tradeweb Markets
