The rise of request for quote (RFQ) in equities trading has been one of the outcomes of MiFID II. Was this expected and what has been the driver?

Although the RFQ mechanism is more deeply rooted in fixed income, it is hardly new in the equity space. In fact, it has existed for a long time on the retail side, where brokers request prices from a network of retail service providers (RSPs), and it is also widely used in ETF (exchange traded funds) trading. However, the advent of MiFID II has significantly changed the cash equities trading landscape for the buyside.

The focus on transparency has led to a search for alternative or additional ways to trade. We’ve seen increased activity on lit exchanges, but also a shift towards Systematic Internalisers (SIs), large-in-scale (LIS) platforms and periodic auctions. In the case of RFQ, it introduces both choice and control to the way buyside firms access liquidity on a trading venue.

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Investor contactAshley Serrao, Tradeweb + 1 646 430 6027Ashley.Serrao@Tradeweb.com

Media contactHannah Randall Akeel, Tradeweb +1 (646) 430-6173Hannah.RandallAkeel@Tradeweb.com

 

NEW YORK – July 22, 2019 – Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced a further expansion of its direct streams capabilities in on-the-run (OTR) U.S. Treasuries.

During the second quarter of 2019, Tradeweb reached a new high for average daily volume (ADV) for Treasuries in direct streams as client trading activity more than quadrupled year over year. New functionality and capabilities introduced by Tradeweb will continue to simplify and streamline access to prices for clients including dealers, market makers, proprietary trading firms (PTFs) and institutional investors.

Direct streams offer access to competitive...

Credit portfolio trading has exploded in 2019, according to Wall Street executives.Investors are flocking toward the tool, and trading firms can facilitate it, as a way to exchange large, diverse bundles of bonds all at once with the help of algorithms and ETFs.Wall Street's top fixed-income trading banks have experienced enormous growth in volumes and competition and are investing to capture the growing demand. Electronic bond-trading marketplaces are joining the fray, too. Tradeweb launched its product less than a year ago, and MarketAxess is set to counter with its own offering in November. Visit Business Insider's homepage for more stories.

Credit portfolio trading has exploded in 2019, according to Wall Street executives.Investors are flocking toward the tool, and trading firms can facilitate it, as a way to exchange large, diverse bundles of bonds all at once with the help of algorithms and ETFs.Wall Street's top fixed-income trading banks have experienced enormous growth in volumes and competition and are investing to capture the growing demand. Electronic bond-trading marketplaces are joining the fray, too. Tradeweb launched its product less than a year ago, and MarketAxess is set to counter with its own offering in November. Visit Business Insider's homepage for more stories.

Credit portfolio trading has exploded in 2019, according to Wall Street executives.Investors are flocking toward the tool, and trading firms can facilitate it, as a way to exchange large, diverse bundles of bonds all at once with the help of algorithms and ETFs.Wall Street's top fixed-income trading banks have experienced enormous growth in volumes and competition and are investing to capture the growing demand. Electronic bond-trading marketplaces are joining the fray, too. Tradeweb launched its product less than a year ago, and MarketAxess is set to counter with its own offering in November. Visit Business Insider's homepage for more stories.

Tradeweb is expanding portfolio trading to its institutional marketplace in Europe as the electronic marketplace for fixed income, derivatives and equities also enhanced this trading protocol for corporate bonds.

Portfolio trading at Tradeweb allows institutions to package a number of bonds into a single basket, negotiate a portfolio level price for this basket and execute in a single transaction.

Adam Parker made a decision that he said his parents didn't necessarily understand when he was leaving college a little over 10 years ago. 

After interning at Lehman Brothers the summer before, Parker had a chance to return to the then-massive investment bank as a full-time employee after graduation. But he wanted to get into investing, having caught the bug after he and few friends sold a Grubhub-like company while undergrads. 

So he joined little-known Force Capital, a hedge fund, because that's what he was passionate about doing. The decision now — 10 years after Lehman collapsed, and with Parker running his own fund — appears to have been a prescient one. 

Adam Parker made a decision that he said his parents didn't necessarily understand when he was leaving college a little over 10 years ago. 

After interning at Lehman Brothers the summer before, Parker had a chance to return to the then-massive investment bank as a full-time employee after graduation. But he wanted to get into investing, having caught the bug after he and few friends sold a Grubhub-like company while undergrads. 

So he joined little-known Force Capital, a hedge fund, because that's what he was passionate about doing. The decision now — 10 years after Lehman collapsed, and with Parker running his own fund — appears to have been a prescient one. 

Following the launch of the first portfolio trading protocol in credit from Tradeweb earlier this year, Hayley McDowell breaks down how these complex transactions are executed and examines the rise of portfolio trading in credit markets.

As the leading institutional, wholesale and retail marketplace for fixed income, derivatives and ETF trading, we believe that market participants will better understand the real impact of e-trading with more centralized access to data on our market activity. 

Government bond yields started rising again in September, following several months of record-low levels around much of the globe. Only Greece and Italy bucked the trend, with the mid-yield on their 10-year benchmark notes dropping by 22 and 21 basis points to end the month at 1.27% and 0.81%, respectively. Greek Prime Minister Kyriakos Mitsotakis announced tax changes and structural economic reforms aimed at rebuilding confidence with the country’s investors. Meanwhile, his Italian counterpart Giuseppe Conte took over a coalition government amid ongoing discussions with the European Commission on how to balance debt reduction and economic growth.Elsewhere in Europe, the largest upward move came from Germany’s 10-year Bund yield. Despite an increase of 13 basis points, it finished in negative territory for the fifth consecutive month, this time at -0.58%. On September 12, the ECB cut its deposit rate from -0.4% to a new record low of -0.5%,...