Long Side Trading System of the Year: Tradeweb

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Technology is a key foundation of Tradeweb’s business. Its continuous technological investments have enabled it to develop new and creative solutions that maximize access to liquidity for market players. Over the past five years, Tradeweb has invested over $ 318 million in technology.

Tradeweb serves more than 2,500 clients covering the world’s largest banks, asset managers, hedge funds, insurance companies, wealth managers and retail clients.

Customers have access to more than 40 fixed income, credit, money market and equity product offerings in more than 65 countries around the world. Tradeweb supports its clients with solutions throughout the transaction lifecycle, including pre-trade, execution, post-trade and data.

James Sun, Asia manager at Tradeweb, said the pandemic and the shift to work-from-home practices have accelerated the adoption of technology-driven business solutions. For this reason, any further enhancement to the platform must be robust enough to cope with market volatility and unprecedented levels of bond issuance, as well as changing labor practices.

Over the past four quarters, Tradeweb has facilitated over $ 920 billion in notional value traded per day, with over 150 brokers providing liquidity to its global institutional clients. In the first three months of 2021, the company saw its average daily volume exceed $ 1,000 billion.

Tradeweb posted its 21st consecutive year of record revenue in 2020. Gross revenue increased 15.1% to $ 892.7 million from 2019, thanks to record volumes in all its asset classes, and capped off with a record fourth quarter. Net income increased 26.2% to $ 218.4 million in 2020 from $ 173.0 million the previous year.

Sun says that a primary theme Tradeweb will focus on is reducing fragmentation by creating a consistent experience, providing access to the same functionality in all markets. This is a relevant topic, especially in Asia, which consists of many markets with their own regulatory framework and their own business practices.

“The most prominent example is China, which is making significant progress in integrating its markets into the international financial system. We will therefore continue to invest in technology ensuring that traders in an increasingly globalized market, regardless of the [of] their location – are able to fully seize opportunities in a way that combines efficiency, access to liquidity and seamless functionality in all markets, ”he said.

During the 12 months ending June 2021, the average daily trading volume in CNY Spot bonds on Tradeweb increased 47% year-on-year.

Last year, Tradeweb improved its trading links on Chinese bonds. It was the first venue to offer global foreign investors fully electronic quote requests in the Chinese interbank bond market (CIBM direct).

On Bond Connect, it almost doubled the number of sub-accounts to 99, which means investors can now trade up to 99 sub-accounts without having to split the order, increasing efficiency and saving time. execution.

Our main goal is to create a strong pipeline of trading protocols and workflow improvements so that we can help our clients deepen their participation in onshore markets.

James Sun, Tradeweb

Tradeweb has also extended its support for Chinese onshore bond trading, following a decision by the China Foreign Exchange Trading System, China Central Depository & Clearing and Shanghai Clearing House to extend the settlement cycle from three days after trade point (T + 3) to four days after (T + 4).

China remains an exciting market for Tradeweb and for many international investors, according to Sun.

“Our main goal is to create a strong pipeline of trading protocols and workflow improvements so that we can help our clients deepen their participation in onshore markets,” he adds.

a Asia risk The judge says Tradeweb has a strong focus on Asia, as well as product innovation, especially in the Chinese bond market.

Going forward, Tradeweb will continue to focus on automation. The company’s team of technology professionals worked with Users of Automated Intelligent Execution (AiEX) – its key automation product – to develop parameters suitable for volatile market conditions, where execution bureaus were faced with reduced screen space and an increased number of tickets.

“We fully expect traders to realize the benefits of automation – managing routine trades, allowing them to focus on the trades that matter most. They can better generate alpha, use data more efficiently, mitigate operational risk and improve their search for liquidity, ”says Sun.

Emerging market interest rate swaps (IRS) is another area of ​​interest for Tradeweb. The sun tells Asia risk that the emerging market of the company IRS The offering recorded average daily volumes of $ 4.9 billion in the first half of 2021 in the 13 markets it currently covers (Poland, Czech Republic, Hungary, South Africa, Brazil, Mexico, Chile, Colombia , Singapore, Hong Kong, South Korea, India and China).

The Libor transition will also be an increasingly important topic, as investors turn to the new benchmark rates for their transactions. Sun expects Asian clients to make greater use of Tradeweb’s new benchmark rate tools as the Libor expires.

“As the first trading platform to facilitate electronic execution of Sonia [sterling overnight index average] Ultimately, we are pioneering this fundamental shift in financial markets as Libor loses regulatory support at the end of 2021. We have been monitoring Libor transition closely and fine-tuning our offering to ensure our clients can perform seamless transition to their business, ”he said.


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