Tradeweb Markets LLC

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Tradeweb Markets LLC
Tradeweb.gif
Founded 1998
Headquarters New York, NY
Key People Billy Hult, CEO
Employees 900+
Products Electronic OTC trading platforms
Website www.tradeweb.com

Tradeweb Markets is a publicly traded electronic broker-dealer that serves multi-dealer to customer markets, wholesale and retail segments of the market, offering trading on interest rates, credit, money markets and equity markets. It also provides technology for order execution and trade workflows. The company, which claims more than 2,500 users in 60 countries, went public on Nasdaq in 2019.[1]

The company has three separate US trading divisions as an SEC registered broker-dealer: Tradeweb LLC (client-to-dealer); Dealerweb Inc. (inter-dealer); and Tradeweb Direct (odd lot trading for the financial advisory community). It also operates TW SEF LLC, a CFTC registered swap execution facility and DW SEF LLC. Outside the US, the company operates Tradeweb Europe Ltd., a multi-lateral trading facility or MTF, regulated by the Financial Conduct Authority in the UK, Securities & Futures Commission of Hong Kong (SFC)and Monetary Authority of Singapore (MAS). It also operates Tradeweb Japan, regulated by the Financial Services Agency of Japan.[2]

The company went public on Nasdaq on April 4, 2019, priced at $27 per share, and raised nearly $1.1 billion in its IPO, which was the second-largest U.S. initial public offering so far in 2019.[3] It had been majority owned by Blackstone Group and Thomson Reuters' financial and risk business (renamed Refinitiv in August 2018) and 11 dealers. [4] The IPO valued the company at about $6 billion based on its filings.

Tradeweb Direct was established in 2006 as the firm entered the retail fixed income marketplace through the acquisition of LeverTrade, a provider of web-based fixed income management systems for the retail marketplace. It is aimed at retail financial advisors, RIAs, traders and buy-side investors.[5][6]

Tradeweb Data & Reporting offers pre-trade and post-trade information from more than 50 liquidity providers.[7][8]

In June of 2019 Tradeweb became the first firm to provide offshore investors with access to the Bond Connect trading initiative to trade Chinese bonds.[9]

History[edit]

Tradeweb was founded in 1998, focusing on a multi-dealer online marketplace for U.S. Treasuries. By 2000, the firm's volume surpassed US$1 trillion annually.

In 2004, Thomson Reuters acquired a majority stake in Tradeweb for $535 million and in 2008 it launched a new inter-dealer trading platform called Dealerweb, which provides a range of voice, electronic, and hybrid markets. [10] Dealerweb expanded rapidly, and in 2011 the business acquired the brokerage assets of Rafferty Capital Markets. Dealerweb also operates a municipal bonds brokerage business through J.J. Kenny Drake, acquired as part of the RaffCap transaction.[11]

Tradeweb began clearing OTC derivatives trades through links with global clearinghouse partners in April of 2010, moving the industry a step closer to fully integrated global OTC electronic trading.[12] In November of that same year, Tradeweb facilitated execution of the first fully electronic, dealer-to-customer interest-rate swap processed by a central clearinghouse.[13]

Tradeweb launched a new equity derivatives platform in Europe in September of 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.[14]

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

The company introduced its fourth derivatives marketplace, a multi-dealer foreign exchange options platform, in February 2012. [15] The platform was acquired by Thomson Reuters in 2013. [16]

In October of 2012, Tradeweb launched a multi-dealer-to-customer market for European-listed ETFs to improve access to liquidity for institutional buy-side clients.[17]

Tradeweb Markets' fixed-income trading platform launched a service in June of 2013 allowing customers to speed up approvals of derivatives transactions before they are executed and pushed to central clearinghouses. The service electronically messages the three parties: the customer, executing broker and the clearing broker, all of whom must be involved in swaps clearing under the 2010 Dodd-Frank Act. [18] For a summary of each of the 16 titles of the Dodd-Frank Act, visit the Dodd-Frank page on MarketsReformWiki.

On September 9, 2013, Tradeweb announced that it had received temporary registration approval from the CFTC for two wholly-owned swap execution facilities (SEFs) for interest rate swaps and credit default swap indices.[19] In late October 2013, the company petitioned the CFTC to make certain classes of credit default swaps, specifically those tied to the Markit iTraxx Europe Index and the Markit CDX indexes.[20] Tradeweb became the first SEF to request CDS classes be "made available to trade" ("MATT") under CFTC rules. For more information, visit the MAT page in MarketsReformWiki. Tradeweb also requested the designation for certain classes of interest rate swaps, joining Javelin and TrueEX, which made similar requests in October 2013.

Both of Tradeweb's swap execution facilities went live on October 2, 2013, with active trading from U.S. and European-based market participants. [21]

Also in 2013, Tradeweb, through Dealerweb's European and interdealer trading division, launched an interdealer iTraxx credit default swap index platform.[22] In addition, Tradeweb's institutional business completed the first electronic buy-side pre-trade credit check for swaps trading in the U.S. [23]

Tradeweb acquired BondDesk Group LLC, a firm catering to the retail fixed income marketplace, on November 1, 2013, and rebranded its combined retail fixed income division as Tradeweb Direct.[24] [25]

In May 2014, Tradeweb entered into an alliance with BlackRock focused on boosting trading, liquidity and risk management in the interest rate and derivatives markets for institutional investors. The alliance integrated the Tradeweb marketplace with BlackRock's Aladdin platform.

Tradeweb launched active U.S. Treasury bond trading on its Dealerweb platform in June 2014.

The firm introduced axe functionality to its platform in Europe in March 2015, to improve buy-side discovery of liquidity for European government and corporate bonds. Tradeweb axes provide pre-trade information in an environment of constrained dealer balance sheets and reduced market liquidity.

In July 2015, Tradeweb was awarded two contracts to supply its electronic trading platform to the European Central Bank. The contracts cover trading of euro-denominated European government bonds, European credit, supranationals and covered bonds, along with U.S. Treasuries, Japanese government bonds, U.S. dollar supranationals and U.S. dollar-and yen-denominated interest rate swaps.

To complement its market for European ETS, Tradeweb launched an OTC marketplace for U.S.-listed ETFs in February 2016, aimed at institutional investors. [26]

In October 2016, Tradeweb, along with FTSE Russell, was named a provider of Gilt and Treasury Bill end-of-day reference pricing by the U.K. Treasury.[27]. 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.[28]

Tradeweb acquired CodeStreet LLC, a data-driven trade identification and workflow management software development company, in March of 2016.[29]

On May 1, 2017, Tradeweb Markets announced the launch of all-to-all trading on its U.S. institutional credit platform, following a beta trial with more than 140 active buy- and sell-side firms.[30]

In September of 2017, Tradeweb executed the first electronic cleared inflation swap on its European interest rate swaps platform in advance of the MiFID II rules set to take effect in January 2018.[31]

In May 2018 Tradeweb said it was creating a venture with Plato, a not-for-profit consortium of more than 20 fund managers and banks, that will launch a major push in European share trading. Tradeweb plans to roll out its system, where investors can request electronic quotes from brokers, to trade large blocks of shares in equities. The Plato consortium includes Axa Investment Managers, BlackRock, Fidelity International, Goldman Sachs, Morgan Stanley and Norwegian sovereign wealth fund Norges Bank Investment Management.[32]

The firm went public on April 4, 2019, soaring to a $7.6bn market capitalization on its first day. It debuted at $27 a share but opened on the Nasdaq at $34.26, a significant premium.[33]

In June 2021, Tradeweb announced its acquisition of eSpeed, Nasdaq's U.S. fixed income trading platform, for $190 million in cash. [34]

In August 2023, Tradeweb completed its A$125 million all-cash acquisition of Yieldbroker, an Australian trading platform. [35] [36]

Key People[edit]

Management Team (as of January 2023)[edit]

  • Billy Hult, Chief Executive Officer
  • Thomas Pluta, President
  • Sara Furber, Chief Financial Officer
  • Chris Bruner, Chief Product Officer
  • Enrico Bruni, Managing Director, Head of Europe and Asia Business
  • Douglas Friedman, General Counsel
  • Justin Peterson, Chief Technology Officer
  • Fred Strobel, Global Head of Human Resources
  • Scott Zucker, Chief Risk and Administrative Officer

References[edit]

  1. ↑ Tradeweb files for IPO in the US — report. Tradeweb.
  2. ↑ Tradeweb - Our Markets. Tradeweb.
  3. ↑ Tradeweb Raises $1.1 Billion in Year's No. 2 IPO in U.S.. Bloomberg.
  4. ↑ Overview. Tradeweb.
  5. ↑ TradeWeb Buys LeverTrade. Waterstechnology.
  6. ↑ TRADEWEB DIRECT: Retail and Middle Markets. Tradeweb.
  7. ↑ Data & Reporting. Tradeweb.
  8. ↑ Greek End Game Approaching?. Wall Street Journal.
  9. ↑ Tradeweb brings price streams and messaging to Bond Connect. The Trade News.
  10. ↑ History. Tradeweb.
  11. ↑ Overview. TradeWeb.
  12. ↑ Tradeweb will begin clearing OTC swaps. Financial Times.
  13. ↑ Tradeweb Delivers Milestone in Electronic Swaps Trade. WSJ.com.
  14. ↑ Tradeweb to launch equity derivatives market. The Financial Times.
  15. ↑ TradeWeb Launches FX Options Platform. Dow Jones.
  16. ↑ Thomson Reuters to buy FX option business from Tradeweb. Reuters.
  17. ↑ Tradeweb adds ETFs to European offering. The Trade News.
  18. ↑ Tradeweb Launches Swaps Credit-Checking Service. Wall Street Journal.
  19. ↑ CFTC Approves Tradeweb Swap Execution Facilities. MondoVisione.
  20. ↑ Tradeweb Applies With CFTC to Offer First Credit-Swap Trading. Bloomberg.
  21. ↑ Live Trading Begins on Tradeweb Markets SEFs. Tradeweb.
  22. ↑ Tradeweb revolutionises CDS. International Financing Review.
  23. ↑ Tradeweb Launches Swaps Credit Checking Service. The Wall Street Journal.
  24. ↑ Tradeweb Markets LLC Acquires BondDesk Group LLC. Tradeweb.
  25. ↑ Tradeweb Markets LLC Acquires BondDesk Group LLC. Tradeweb.
  26. ↑ Tradeweb Launches U.S.-Listed ETF Platform. Markets Media.
  27. ↑ Tradeweb and FTSE Russell to Provide Gilt Closing Prices Solution. Finance Magnates.
  28. ↑ Trading Quartet Launches Electronic Debt Markets Association Europe. efinancialnews.
  29. ↑ Tradeweb Markets LLC Acquires CodeStreet LLC. PR Newswire via The Street.
  30. ↑ Tradeweb launches All-to-All Corporate Bond Trading. Tradeweb.
  31. ↑ First Cleared RFQ Inflation Swap Trade Executed on Tradeweb. Tradeweb.
  32. ↑ Tradeweb plans push into European share trading. The Financial Times.
  33. ↑ Tradeweb shares jump in latest test for crowded IPO market on Wall Street this year. CNBC.
  34. ↑ Tradeweb to acquire Nasdaq’s eSpeed central limit order book. TheDesk.
  35. ↑ Tradeweb finalises acquisition of Yieldbroker. Securities Finance Times.
  36. ↑ Tradeweb Completes Acquisition of Yieldbroker. Markets Media.
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