Tradeweb Markets LLC

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Tradeweb Markets LLC
Tradeweb.gif
Founded 1998
Headquarters New York
Key People Lee Olesky, CEO; Billy Hult, President
Products Electronic OTC trading platforms
Website www.tradeweb.com

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 Direct (odd lot trading for the financial advisory community). Tradeweb also provides a range of market data and post-trade processing services. It is majority-owned by Thomson Reuters and eleven leading dealers. [1]

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.[2]

Tradeweb Retail 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.[3]

Tradeweb launched a new equity derivatives platform in Europe 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.[4]

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 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. [5] The platform was acquired by Thomson Reuters in 2013. [6]

In October 2012, Tradeweb launched a multi-dealer-to-customer market for European-listed ETFs to improve access to liquidity for institutional buy-side clients.[7]

In June 2013, Tradeweb Markets' fixed-income trading platform launched a service allowing customers to speed up approvals of derivatives transactions before they are executed and pushed to central clearinghouses. The service automates the process for participants, electronically messaging the three parties: the customer, executing broker and the clearing broker. Those three parties now have to be involved in swaps clearing under the 2010 Dodd-Frank Act. [8] 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. [9] 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.[10] 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. [11]

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.[12] [13]

In January 2014, Risk.net named Tradeweb as "OTC platform of the year". [14]

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.

Tradeweb acquired CodeStreet LLC, a data-driven trade identification and workflow management software development company, in March of 2016.[15]

History

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

In 2004, Thomson Reuters acquired a majority stake in Tradeweb for $535 million and in 2009 launched a new inter-dealer trading platform called Dealerweb which provides a range of voice, electronic, and hybrid markets. [16]

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.[17] 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.[18]

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.[19]

In 2013, Tradeweb, through Dealerweb's European and interdealer trading division, launched an interdealer iTraxx credit default swap index platform. [20] In addition, Tradeweb's institutional business completed the first electronic buy-side pre-trade credit check for swaps trading the U.S. [21] The same year, Tradeweb Direct was launched, following the integration of BondDesk Group with Tradeweb Retail.

Key people

History

1996

  • Tradeweb’s business plan approved by CSFB

1997

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

1998

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

2000

  • London office opened
  • Total trading volume on Tradeweb 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
  • Begins providing Market Data services
  • 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 volume on Tradeweb exceeds $100 billion
  • Adds marketplace for Agency Discount Notes

2004

  • Founding dealers sell to Thomson Corp for $535 million

2005

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

2006

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

2008

  • Tradeweb volume surpasses $300 trillion
  • Nine leading dealers and Thomson Financial agree to invest in Tradeweb. Thomson’s AutEx and Order Routing Network move into 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.
  • Launches Dealerweb, an electronic inter-dealer platform, with Mortgages marketplace in the U.S.
  • Adds marketplace for Agencies through Dealerweb in the U.S.
  • Launches Tradeweb PLUS for European Government Bonds

2010

  • Adds marketplace for Equity Derivatives in Europe
  • Launches DerivAlert.org, providing pertinent news and information on OTC derivatives regulation
  • Adds hybrid marketplace for Treasury Bills through Dealerweb in the U.S.
  • 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
  • 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 and 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

  • Enhances Credit marketplace with CEEMEA bonds
  • Adds Exchange-Traded Funds marketplace in Europe
  • Expands CDX Index trading platform to enable dealer-to-dealer trading

2013

  • Adds Exchange for Physical (EFP) marketplace on Dealerweb
  • Launches Dealerweb in Europe with iTraxx Marketplace
  • Receives temporary approval by the CFTC to operate two Swap Execution Facilities
  • Acquires BondDesk Group and launches Tradeweb Direct
  • Adds Floating Rate Notes to the Tradeweb marketplace

2014

  • Completes the firm's first sponsored access trade on TW SEF
  • Announces strategic alliance with BlackRock to create fully electronic rates trading solution
  • Launches active U.S. Treasury trading on Dealerweb
  • Launches the Tradeweb U.S. Corporate Bond Marketplace

2015

  • Introduces trade data reports and axes for European ETFs
  • Awarded European Central Bank Electronic Trading Platform contracts
  • Launches an Electronic Trading Platform (ETP) in Japan
  • Forms strategic alliance with ICD to provide Corporate Treasury clients access to the Tradeweb platform

2016

  • Launches a U.S. ETF platform supporting over-the-counter trading of ETFs
  • Acquires CodeStreet LLC, a data-driven trade identification and workflow management software development company
  • Named a provider of Gilt and Treasury Bill end-of-day reference pricing by the UK Treasury
  • Establishes the Electronic Debt Markets Association (EDMA) in Europe

2017

  • Launches APA Services in support of MiFID II reporting

Tradeweb History Online.[22]

References

  1. Overview. Tradeweb.
  2. Greek End Game Approaching?. Wall Street Journal.
  3. TradeWeb Buys LeverTrade. Waterstechnology.
  4. Tradeweb to launch equity derivatives market. The Financial Times.
  5. TradeWeb Launches FX Options Platform. Dow Jones.
  6. Thomson Reuters to buy FX option business from Tradeweb. Reuters.
  7. Tradeweb adds ETFs to European offering. The Trade News.
  8. Tradeweb Launches Swaps Credit-Checking Service. Wall Street Journal.
  9. CFTC Approves Tradeweb Swap Execution Facilities. MondoVisione.
  10. Tradeweb Applies With CFTC to Offer First Credit-Swap Trading. Bloomberg.
  11. Live Trading Begins on Tradeweb Markets SEFs. Tradeweb.
  12. Tradeweb Markets LLC Acquires BondDesk Group LLC. Tradeweb.
  13. Tradeweb Markets LLC Acquires BondDesk Group LLC. Tradeweb.
  14. OTC trading platform of the year: Tradeweb. Risk. net.
  15. Tradeweb Markets LLC Acquires CodeStreet LLC. PR Newswire via The Street.
  16. History. Tradeweb.
  17. Tradeweb will begin clearing OTC swaps. Financial Times.
  18. Tradeweb Delivers Milestone in Electronic Swaps Trade. WSJ.com.
  19. Press Release. Tradeweb.
  20. Tradeweb revolutionises CDS. International Financing Review.
  21. Tradeweb Launches Swaps Credit Checking Service. The Wall Street Journal.
  22. www.Tradeweb.com. Tradeweb History.