Tradeweb

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Tradeweb Markets, headquartered in New York, is an electronic market-maker that serves international securities dealers and institutional investors. The company has three separate trading divisions: Tradeweb Institutional (client-to-dealer); Dealerweb (inter-dealer); and Tradeweb Retail (odd lot fixed income for the financial advisory community). Tradeweb also provides a range of market data and post-trade processing services. It is owned by Thomson Reuters and ten leading dealers.

Tradeweb offers specialist execution services across a number of key finance markets including U.S. Treasuries, fixed income, derivatives and the money market. The company's real-time market data on heavily-traded securities are also frequently quoted by financial media such as the Wall Street Journal.^[1]

Tradeweb launched a new equity derivatives platform in September 2010 to facilitate the trading of large blocks of single-name and index options for institutional customers by allowing them to compare quotes from brokers online. Previously, such trades in Europe were done by voice via trading desks.^[2]

Growing its inter-dealer offering in October 2011, Tradeweb acquired the brokerage assets of Rafferty Capital Markets and launched a fully integrated hybrid voice/electronic trading solution for off-the-run U.S. Treasuries. The deal expanded Dealerweb with brokerage desks for U.S. Treasuries, U.S. Agencies, mortgages, repo, corporate bonds, taxable municipal bonds and the J.J. Kenny Drake tax-exempt municipal bond brokerage group.

In February 2012, Tradeweb introduced a multi-dealer foreign exchange options platform, its fourth derivatives marketplace. The company said said the new platform allows options trading in a range of strategies on major currencies and allows investors to request quotes from several dealers simultaneously. ^[3]

Background

Tradeweb was founded in 1996, focusing on the global over-the-counter (OTC) securities market. By 2000, its volume had surpassed US$1 trillion annually.

In 2004, a majority stake in Tradeweb was acquired by financial media giant Thomson Reuters for $535 million and in 2009 launched a new inter-dealer trading platform called Dealerweb.^[4]

In 2009, Tradeweb launched a new service aimed at the inter-dealer market and in April 2010 began clearing OTC derivatives trades, offering dealers full automation of their trades.

Tradeweb announced in April 2010 that it would begin clearing its OTC derivatives trades through links with global clearinghouse partners, moving the industry a step closer to fully integrated global OTC electronic trading. The main initial links would be with the Chicago Mercantile Exchange (CME) via CME Clearing, ICE Trust and ICE Europe via ICE Link and MarkitSERV via LCH.Clearnet's SwapClear. The move was expected to help OTC securities dealers by allowing them to offer complete electronic trade execution and compete on an equal footing with exchanges.^[5]

In November 2010, online derivatives marketplace Tradeweb facilitated execution of the first fully electronic, dealer-to-customer interest-rate swap that was processed by a central clearinghouse.^[6]

In February 2011, U.S. dollar-denominated swap transactions were executed on the Tradeweb institutional multi-dealer-to-client platform between BlueMountain Capital Management, a U.S.-based hedge fund, and Deutsche Bank.^[7]

Key people

• Lee Olesky, CEO
• Billy Hult, President
• Jay Spencer, Chief Technology Officer

History

1996

• Tradeweb’s business plan was approved by CSFB

1997

• First Boston, Goldman Sachs, Lehman Brothers and Salomon Brothers back Tradeweb

1998

• Tradeweb launches first multi-dealer online marketplace for U.S. Treasuries

2000

• London office opened
• Tradeweb volume surpasses $1 trillion
• Adds marketplaces for trading Agencies and European Government Bonds

2001

• Adds marketplaces for Mortgage Backed Securities, Commercial Paper and Pfandbriefe/Covered Bonds
• Tradeweb begins providing Market Data
• September 11th attacks destroy office in World Trade Center, Tradeweb is back in business within two weeks

2002

• New headquarters opened in Jersey City, NJ
• Adds marketplaces for Supranationals and European Commercial Paper

2003

• Daily trading on Tradeweb exceeds $100 billion for the first time
• Adds marketplace for Agency Discount Notes

2004

• Founding dealers sell to Thomson Corp for $535 million
• Adds marketplace for U.S. Corporate Bonds

2005

• Tokyo office opened
• Total Tradeweb volume surpasses $100 trillion
• Adds marketplaces for Interest Rate Swaps, CDS Indices and Repo
• Adds Canadian Debt Securities through CanDeal

2006

• Tradeweb enters retail market with acquisition of LeverTrade
• Adds marketplace for European Credit

2007

• Nine leading dealers and Thomson Financial agree to invest in Tradeweb. Thomson’s AutEx and Order Routing Network move into Tradeweb

2008

• Tradeweb volume surpasses $300 trillion
• Tradeweb enters inter-dealer market with acquisition of Hilliard Farber & Co., Inc.
• Adds marketplaces for Cash Deposits, Japanese Government Bonds and Yen Swaps

2009

• Adds marketplace for Deposits in the U.S.
• Tradeweb launches Dealerweb, an electronic inter-dealer platform, with Mortgages marketplace in the U.S.
• Adds marketplace for Agencies through Dealerweb in the U.S.
• Tradeweb launches Tradeweb PLUS for European Government Bonds

2010

• Adds marketplace for Equity Derivatives in Europe
• Tradeweb launches DerivAlert.org, providing pertinent news and information on OTC derivatives regulation
• Adds hybrid marketplace for Treasury Bills through Dealerweb in the U.S.
• Tradeweb launches Tradeweb PLUS for Interest Rate Swaps
• U.S. Corporate Headquarters moves into New York City, establishes U.S. Center for Brokerage, Technology and Operations.
• Tradeweb AutEx and Order Routing Network move into Thomson Reuters
• Tradeweb enters into agreement for Thomson Reuters to redistribute Tradeweb Market Data in Eikon
• Adds marketplace for CDs in the U.S.

2011

• Adds marketplace for European Repo
• Adds European Equity Futures
• High-yield bonds added to the European Credit marketplace
• Adds Australian Government Bonds marketplace
• Acquires Rafferty Capital Markets’ rates and credit brokerage desks and J.J. Kenny Drake municipal bond brokerage and data businesses
• Launches a fully integrated hybrid voice/electronic inter-dealer trading solution for off-the-run U.S. Treasuries

2012

• Adds FX Options marketplace

Tradeweb History Online.^[8]

References

1. ↑ Greek End Game Approaching?. Wall Street Journal.
2. ↑ Tradeweb to launch equity derivatives market. The Financial Times.
3. ↑ TradeWeb Launches FX Options Platform. Dow Jones.
4. ↑ History. Tradeweb.
5. ↑ Tradeweb will begin clearing OTC swaps. Financial Times.
6. ↑ Tradeweb Delivers Milestone in Electronic Swaps Trade. WSJ.com.
7. ↑ Press Release. Tradeweb.
8. ↑ www.Tradeweb.com. Tradeweb History.