Tradeweb and FTSE Russell have expanded their partnership to include US Treasury closing prices. This collaboration aims to enhance transparency and reliability in the pricing of US government securities for market participants.

New Benchmark Prices for US Treasuries

According to the press release, the two entities have launched the Tradeweb FTSE US Treasury Closing Prices, a set of benchmarks designed to enhance the accuracy and reliability of US Treasury pricing. This expansion builds on the existing benchmarks for UK Gilts and European Government Bonds and incorporates trading data from Tradeweb’s electronic platform.

Lisa Schirf, the Global Head of Data and Analytics at Tradeweb, mentioned: "As we continue to expand Tradeweb’s collaboration with FTSE Russell, our clients gain access to a broader set of benchmarks for use as reliable closing prices in their investment process, end-of-day trading strategies, and other purposes. We believe the Tradeweb FTSE US Treasury closing prices will serve as a unique foundation for the global fixed income markets."

The new pricing methodology reportedly captures bid and offer prices based on executable quotes collected through the Tradeweb platform. This approach includes mid-prices for all asset classes and accounts for transaction costs. The data set covers a range of securities, such as US Treasury notes, bonds, bills, strips, and TIPS, with pricing snapshots at 3:00 and 4:00 pm (New York time).

Expanding Benchmark Pricing

Tradeweb mentioned that this extension to US Treasury markets is important in broadening benchmark pricing across various fixed-income securities, with a focus on USD-denominated credit securities. The platform added that Tradeweb FTSE US Treasury Closing Prices adhere to EU and UK Benchmark Regulations and the IOSCO Principles for Financial Benchmarks.

Last week, Tradeweb Markets posted strong institutional activity. Trading volume amounting to $41.7 trillion in May 2024, representing a 40% year-over-year increase in average daily volume (ADV) to $1.9 trillion.

US government bond ADV expanded by 33.4% YoY to $192.5 billion, supported by broad client sector growth and favorable market conditions. European government bond ADV experienced a slight drop of 0.4% YoY to $41.4 billion. The adoption of new protocols and increased primary issuance in Europe and the UK contributed to sustained trading volumes.

Besides that, Tradeweb introduced a new feature to link its repurchase agreement and interest rate swap platforms to enhance execution workflow in these markets. Electronic marketplaces promise to enhance the efficiency of institutional clients in navigating these platforms through the new offering.