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Tradeweb Markets LLC
IndustryFinancial services
Founded1998
HeadquartersNew York City, United States
Key people
Lee Olesky, Co-Founder and CEO, Jim Toffey, Co-Founder; Billy Hult, President;[1][2]
Websitewww.tradeweb.com

Tradeweb Markets LLC (Tradeweb) is an international financial services company that builds and operates electronic over-the-counter (OTC) marketplaces for companies that trade fixed income products and derivatives. The company was co-founded in 1996 by Lee Olesky and Jim Toffey[3][4] and now serves a variety of institutions, a network that includes the largest banks, asset managers, central banks, pension funds, and insurance companies. Since its founding, Tradeweb has grown into a global company that operates across multiple currencies and in numerous countries. Its focus is on applying technology to drive greater efficiency, transparency, and overall performance for institutions that trade fixed income and derivatives products.

History

Tradeweb launched its first multi-dealer online marketplace for U.S. Treasuries in 1998.

In 2000, the firm opened its London office and launched marketplaces for trading European government bonds and agencies.

The firm was privately held until 2004, when it was acquired by The Thomson Corporation for $535 million.[5]

Tradeweb established its Tokyo office in 2005. Thus began a partnership with CanDeal to launch Canadian Debt Securities trading.[6] In the same year, the firm grew by introducing marketplaces for interest rate swaps, credit default swap indices, and repo.

In 2006, Tradeweb Retail was established as the firm entered the retail fixed income marketplace through the acquisition of Lever-Trade, a provider of web-based fixed income management systems for the retail marketplace.[7]

In 2007, Thomson Financial, a unit of The Thomson Corporation, announced its plans to expand electronic trading by creating a strategic partnership with nine other global dealers through Tradeweb valuing the company at $1.55 billion.[8]

Following its acquisition by The Thomson Corporation, the firm entered the inter-dealer broker space. In 2008, it acquired Hilliard Farber & Co. Inc., the voice brokerage company, which was known for its reputation and industry expertise.[9] In 2009, it launched Dealerweb, an electronic interdealer platform for to-be-announced, or forward, mortgage-backed securities (TBA-MBS)[10] with an emphasis on being highly liquid.

In 2010, Tradeweb facilitated the first fully electronic, dealer-to-customer interest rate swap to be processed by a central clearing house in the U.S.[11] That same year, the firm relocated its U.S. headquarters to New York City, where it is now, and established the U.S. Center for Brokerage Technology and Operations in Jersey City.

In 2011, Tradeweb acquired the brokerage assets of Rafferty Capital Markets LLC (RaffCap) and the municipal bond broking business of J.J. Kenny Drake.[12]

In 2013, Tradeweb, through Dealerweb's European and interdealer trading division, launched an interdealer iTraxx credit default swap index platform.[13] In addition, Tradeweb's institutional business completed the first electronic buy-side pre-trade credit check for swaps trading in the U.S.[14] The firm also secured CFTC temporary approval of two wholly owned swap execution facilities (SEFs) TW SEF and DW SEF.[15] Live SEF trading on the platforms began on October 2, 2013.[16]

In November 2013, Tradeweb acquired BondDesk Group, a bond trading venue in the U.S. for advisors and middle market investors.[17] Tradeweb integrated the businesses, technology, services and support of Tradeweb Retail and BondDesk to form Tradeweb Direct.

In May 2014, Tradeweb and BlackRock announced a strategeic partnership that created electronic trading solutions in rates and derivatives markets for BlackRock's Aladdin clients.[18]

In June 2014, Tradeweb launched active U.S. Treasury bond trading on the Dealerweb platform, supporting trading of the most liquid on-the-run Treasury bonds with participation from dealers and several electronic market making firms.[19]

In October 2014, the company announced that investors can trade company debt for American companies on its web platform.[20]

In March 2015, Tradeweb introduced trade data reports and axes for European ETFs. Later that year, it announced that axes on its platform for European government bonds, European credit, covered bonds, supranationals, agencies, and sovereigns (SAS) allowed supported improved buy-side discovery of liquidity on its marketplace.[21]

On May 14, 2015, Tradeweb announced the completion of an industry-first packaged mortgage backed security (MBS) and U.S. Dollar swap transaction on a swap execution facility (SEF) before the expiration of no-action relief by the Commodity Futures Trading Commission (CFTC) that required the mandatory swap leg of these types of packages to trade on SEFs or designated contract markets (DCM) after May 15, 2015.[22]

In September 2015, the company announced that its newly launched marketplace for trading interest rate swaps (IRS) saw its first Yen-swap trade under Japan's new mandatory trading rules, which went live that month.[23][24]

In February 2016, as institutional demand of exchange-traded funds (ETFs) continued to grow, Tradeweb launched an OTC marketplace for U.S.-listed ETFs aimed at institutional investors to complement its leading marketplace for European ETFs. Later in the year, the company announced that notional volumes on its platform exceeded $12 billion.[25][26][27][28]

In March 2016, the company acquired CodeStreet LLC, a leader in data-driven trade identification and workflow management software development, with the aim of enhancing corporate bond trading and delivering innovative tools to improve pre- and post-trade data solutions to improve quality of execution with greater information protection.[29][30]

In October, Tradeweb along with FTSE Russell was named a provider of Gilt and Treasury Bill end-of-day reference pricing by the U.K. Treasury. The same month, the firm became one of four electronic trading platforms to launch the Electronic Debt Markets Association Europe (EDMA Europe), which was formed to develop and promote collective member views on regulatory developments affecting electronic fixed income trading venues in Europe.[31][32][33][34]

In December 2016, the firm announced record volume of $7.9 trillion across its platforms during November, making it the most active month of trading since the credit crisis.[35][36]

The same month, Tradeweb announced a year-over-year increase in U.S. institutional credit cash volume to more than $11.8 billion.[37]

In January 2017, Tradeweb announced the launch of an Approved Publication Arrangement (APA) service to allow market participants to meet post-trade requirements mandated by the Markets in Financial Instruments Directive (MiFID) II.[38] The same month, the firm's trading activity on its European-listed ETF platform grew 19% to €134.4 billion from 2015 to 2016, according to an article in Markets Media.[39]

In March 2017, Citadel Securities became a liquidity provider on the Tradeweb institutional U.S. Treasury marketplace, expanding its role on the platform beyond IRS, CDS indices, and U.S. ETFs.[40]

In April, Tradeweb detailed significant growth of European spread products and Eurobonds. For Q1 2017, volume reached €73.8 billion, beating Q1 2016 by 22.3% and previous record-holder Q1 2015 by 21.5%. Volume executed in European Credit alone exceeded €38.32 billion, an increase of 21.4% from Q1 2016 and previous record quarter.[41]

That same month, the company announced it would extend its all-to-all corporate bond trading service, set to be launched in the U.S. later in 2017, into Europe following an increase in demand for RFQ trading protocols.[42]

Tradeweb announced the launch of all-to-all trading on its U.S. institutional credit platform in May. The solution integrated in its liquidity pool with Tradeweb Direct, the firm's retail business, and provided clients the ability to trade with more than 130 dealers.[43]

During the same month, Tradeweb was named Best Fixed Income Trading Platform at the 15th annual Financial News Trading & Technology Awards.[44]

Tradeweb became the first offshore trading platform to connect with China Foreign Exchange Trade System (CFETS) in June 2017, serving as the main trading interface for offshore investors to access Bond Connect, allowing investors outside of China to invest in the China Interbank Bond Market for the first time.[45]

The same month, the firm announced that Dealerweb, its inter-dealer marketplace had grown to capture 18% of U.S. repo for inter-dealer trading since launching in June 2016.[46][47]

Subsequently, the firm announced that the first fully electronic China Bond Connect trades were executed through trading link, and more than 70 institutions from over 10 countries had onboarded for the launch.[48]

Tradeweb also made a strategic investment in DealVector, Inc., a fixed income asset registry and communication platform.[49][50]

Offices

Tradeweb's headquarters are in New York City. It also has offices in Garden City, New York; Jersey City, New Jersey; Jupiter and Boca Raton, Florida; and Los Angeles. Its European presence is in London, while its Asian presence is in Tokyo, Singapore, and Hong Kong.

Operations

Tradeweb Institutional, Dealerweb, and Tradeweb Direct are the company's three divisions.

Tradeweb Institutional supports the client-to-dealer business. It is the largest of company's three market divisions.

Dealerweb is the inter-dealer division that provides a range of voice, electronic, and hybrid markets for major global banks.

Tradeweb Direct provides fixed income trading solutions for financial advisors, the institutional buy side, traders, and broker dealers.

Shareholders

It is a privately held company. Thomson Reuters owns 51%, the rest is split between 11 banks: Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, RBS, UBS.[51]

References

  1. ^ ""TradeWeb Names Lee Olesky President of TradeWeb Group and TradeWeb Europe; TradeWeb Europe Looks to Extend Its Leadership With Olesky"". PR Newswire Association LLC. 1 April 2002. Retrieved 6 April 2015.
  2. ^ Weinberg, Neil (10 September 2001). "B2B Grows Up". Forbes.com. Retrieved 6 April 2015.
  3. ^ ""TradeWeb Names Lee Olesky President of TradeWeb Group and TradeWeb Europe; TradeWeb Europe Looks to Extend Its Leadership With Olesky"". PR Newswire Association LLC. 1 April 2002. {{cite news}}: |access-date= requires |url= (help)
  4. ^ Weinberg, Neil (10 September 2001). "B2B Grows Up". Forbes.com. Retrieved 6 April 2015.
  5. ^ Risk Magazine (1 May 2004). "Thomson Announces Tradeweb Acquisition". Risk. Retrieved 14 January 2015.
  6. ^ Carbonnier, Jean-Paul (26 September 2006). "Tradeweb Partners with CanDeal". Risk. Retrieved 29 January 2015.
  7. ^ Kutler, Jeffrey (24 July 2006). "Thomson TradeWeb Buys LeverTrade as Retail Entry Point". Securities Technology Monitor. Retrieved 29 January 2015.
  8. ^ Schmerken, Ivy (10 October 2007). "Thomson Plans to Spin Off Tradeweb". Wall Street & Technology. Retrieved 14 January 2015.
  9. ^ Wolfe, Daniel (6 November 2008). "Tradeweb Acquires Hilliard Farber". American Banker. Retrieved 14 January 2015.
  10. ^ Elder, Bryce; Hume, Neil (21 April 2009). "Icap Hurt by Banks' Platform". Financial Times. Retrieved 14 January 2015.
  11. ^ Burne, Katy (18 November 2010). "Tradeweb Delivers Milestone in Electronic Swaps Trade". The Wall Street Journal. Retrieved 14 January 2015.
  12. ^ Reuters (11 October 2011). "Tradeweb Buys Brokerage; Plans Treasury Trading Platform". Reuters. Retrieved 29 January 2015. {{cite news}}: |last1= has generic name (help)
  13. ^ Whittall, Christopher (16 March 2013). "Tradeweb Revolutionises CDS". IFR. Retrieved 29 January 2015.
  14. ^ Burne, Katy (6 June 2013). "Tradeweb Launches Swap Credit-Checking Service". The Wall Street Journal. Retrieved 29 January 2015.
  15. ^ Schmerken, Ivy (23 September 2013). "CFTC Puts SEF Approvals on the Fast Track". Wall Street & Technology. Retrieved 29 January 2015.
  16. ^ Puaar, Anish (14 October 2013). "US Buyside Adopts Cautious Approach to Swaps Platforms". Financial News. Retrieved 29 January 2015.
  17. ^ Thomases, Jake (1 November 2013). "Tradeweb Revamps Retail Fixed Income with BondDesk Buy". Waters Technology. Retrieved 29 January 2015.
  18. ^ Mackenzie, Michael. "BlackRock Signals Bond Trading Shake-Up". Financial Timesdate= 14 May 2014. Retrieved 29 January 2015.
  19. ^ Mackenzie, Michael (5 June 2014). "Dealerweb Launch Shakes Up Treasury Trading". Financial Times. Retrieved 29 January 2015.
  20. ^ Leising, Matthew (29 October 2014). "Bond Market Overhaul Requires Patience for Tradeweb CEO". Bloomberg. Retrieved 11 December 2014.
  21. ^ "Tradeweb Introduces Trade Data Reports and Axes for European ETFs :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  22. ^ "First On-SEF MBS Swap Package Traded On The Tradeweb TW SEF :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  23. ^ "First Regulated Yen-Swap Trade Executed on Tradeweb ETP :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  24. ^ "Japan goes live with swaps trading mandate". IFRAsia. Retrieved 6 December 2016.
  25. ^ "Tradeweb introduces US ETF marketplace aimed at institutional investors". ETF Strategy. 4 February 2016. Retrieved 6 December 2016.
  26. ^ "Tradeweb launches electronic trading platform for European-listed ETFs". ETF Strategy. 24 October 2012. Retrieved 6 December 2016.
  27. ^ "Tradeweb Launches U.S. ETF Trading Platform :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  28. ^ "Tradeweb U.S. ETF Trading Volume Surpasses $12 Billion Year-to-date :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  29. ^ "Tradeweb-CodeStreet Deal Aims to Pool Liquidity - Markets Media". marketsmedia.com. Retrieved 6 December 2016.
  30. ^ "Tradeweb Markets LLC Acquires CodeStreet LLC :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  31. ^ Cave, Tim (13 October 2016). "Trading quartet launches lobby group for electronic bond markets". Retrieved 6 December 2016.
  32. ^ "Bond platforms form lobby group to tackle MiFID II | The Trade". www.thetradenews.com. Retrieved 6 December 2016.
  33. ^ "Tradeweb and FTSE Russell named as providers of Gilt and Treasury Bill end-of-day reference pricing by the UK Treasury :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  34. ^ "Leading Trading Venues Establish Electronic Debt Markets Association :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  35. ^ "Trump brings record monthly volume to Tradeweb | The Trade". www.thetradenews.com. Retrieved 6 December 2016.
  36. ^ "Tradeweb Records $7.9 Trillion in Biggest Volume Month since the Credit Crisis :: Tradeweb". www.tradeweb.com. Retrieved 6 December 2016.
  37. ^ "Tradeweb U.S. Cash Credit Volume Tops $11.8 Billion in November - 371% YoY Growth :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  38. ^ Agini, Tim Cave and Samuel. "Big banks pick Tradeweb for Mifid II reporting". Retrieved 12 September 2017.
  39. ^ "Tradeweb Sees ETF Growth - Markets Media". marketsmedia.com. Retrieved 12 September 2017.
  40. ^ "Citadel Securities Joins Tradeweb's Institutional U.S. Treasuries Marketplace :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  41. ^ "Tradeweb European Credit Platform Reports Record Quarter with EUR 73.8 Billion Traded in Q1 2017 :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  42. ^ "Tradeweb Adds to All-to-All Trading - Markets Media". marketsmedia.com. Retrieved 12 September 2017.
  43. ^ "Tradeweb Launches All-to-All Corporate Bond Trading :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  44. ^ Pearse, Juliette. "Best Fixed Income Trading Platform – Tradeweb". Retrieved 12 September 2017.
  45. ^ "Tradeweb Markets to Provide the First Offshore Electronic Bond Trading Platform in the Establishment of Bond Connect :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  46. ^ "Dealerweb Captures 18% of U.S. Inter-dealer Repo Trading :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  47. ^ "Securities Lending Times | Dealerweb claims significant US repo market share | securitieslendingtimes.com". www.securitieslendingtimes.com. Retrieved 12 September 2017.
  48. ^ "First Fully Electronic China Bond Connect Trades Executed through Tradeweb :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  49. ^ "Tradeweb Markets Makes Strategic Investment in DealVector :: Tradeweb". www.tradeweb.com. Retrieved 12 September 2017.
  50. ^ "Tradeweb Invests in DealVector to Grow Fixed-Income Suite of Solutions - WatersTechnology.com". WatersTechnology.com. 20 July 2017. Retrieved 12 September 2017.
  51. ^ "Thomson Reuters looks at raising majority share in Tradeweb". Financial Times. Retrieved 6 December 2017. {{cite web}}: Cite has empty unknown parameter: |dead-url= (help)
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