A new strategic partnership between FTSE Russell and Tradeweb Markets Inc. aims to develop new fixed-income pricing and trading products. The collaboration seeks to extend pricing coverage and explore the incorporation of new pricing sets to offer a more efficient trading environment for fixed-income securities.
Tradeweb and FTSE Russell Forge a Partnership
The partnership is designed to provide more reliable and extensive pricing across a range of fixed-income securities. FTSE Russell, the index provider, will administer these prices as benchmarks, which will be derived from trading activities on Tradeweb's platform. Therefore, the collaboration aims to deliver algorithmic pricing that aligns closely with actual trading levels. For example, these prices will be used as reference rates for various financial activities, such as trade-at-close transactions and derivatives contracts.
“Tradeweb’s collaboration with FTSE Russell will provide clients with verified benchmarks they can use as reliable closing prices for their end-of-day trading strategies and other purposes,” Lisa Schirf, the Global Head of Data & Analytics at Tradeweb, stated. “The Tradeweb FTSE closing prices will create a foundation across global Fixed Income markets for consistent end-of-day and intraday prices and is another way we are investing in the electronification of the markets.”
Expanding the Scope of Index Inclusion and Trading Functionality
In the coming months, both companies plan to extend their pricing sets to cover multiple regions and asset classes within the fixed-income sector. FTSE Russell is also exploring the possibility of incorporating Tradeweb's pricing into its fixed-income indices. This initiative starts with the FTSE World Government Bond Index, which comprises sovereign debt from over 20 countries and is denominated in multiple currencies.
In addition, Tradeweb aims to offer improved electronic trading functionalities for FTSE Russell's fixed-income indices. Tools and protocols like request-for-quote, Automated Intelligent Execution tool, and Portfolio Trading will be employed
“With our comprehensive suite of sophisticated Fixed Income Indices and a growing need for innovative pricing solutions from our clients, our deeper collaboration with Tradeweb will enable us to bring to market greater tractability and tradability of our indices,” Scott Harman, the Head of Fixed Income Indices at FTSE Russell, commented.
Finance Magnates yesterday reported that the company has established a partnership with Grayscale to launch new crypto indices.
Tradeweb’s Strong Performance and Expansion
Q3 2023 marked a period of strong performance and strategic expansion for Tradeweb. The company released its trading metrics for September 2023, revealing a total trading volume of $31.8 trillion and a record average daily volume (ADV) of $1.57 trillion. These numbers indicate a substantial year-over-year growth, particularly in ADV for the third quarter.
Market | Total Volume (Trillions) | ADV (Billions) |
Rates | $15.7 | $785 |
Credit | $12.5 | $625 |
Equities | $2.5 | $125 |
Money Markets | $1.1 | $55 |
Total | $31.8 | $1,590 |
Source: Tradeweb
In addition to its strong trading metrics, Tradeweb has finalized its A$125 million all-cash acquisition of Yieldbroker, an Australian platform specializing in government bonds and interest rate derivatives.
This acquisition allows Tradeweb to extend its reach into the Asia-Pacific debt market, offering its clients new opportunities for diversification and growth.
