Lee Olesky, CEO and cofounder of Tradeweb, spoke to Business Insider about what he sees as the next big opportunity for the electronic marketplace operator. Olesky highlighted the importance of offering more connections between the various markets Tradeweb operates in, which include bonds, rates, and ETFs."We see, as everything moves into this digital environment, a real opportunity to connect things as much as possible," Olesky said. Click here for more BI Prime stories.

Lee Olesky, CEO and cofounder of Tradeweb, spoke to Business Insider about what he sees as the next big opportunity for the electronic marketplace operator. Olesky highlighted the importance of offering more connections between the various markets Tradeweb operates in, which include bonds, rates, and ETFs."We see, as everything moves into this digital environment, a real opportunity to connect things as much as possible," Olesky said. Click here for more BI Prime stories.

Lee Olesky, CEO and cofounder of Tradeweb, spoke to Business Insider about what he sees as the next big opportunity for the electronic marketplace operator. Olesky highlighted the importance of offering more connections between the various markets Tradeweb operates in, which include bonds, rates, and ETFs."We see, as everything moves into this digital environment, a real opportunity to connect things as much as possible," Olesky said. Click here for more BI Prime stories.

Achieve fast and efficient execution on a large notional trade comprising multiple bonds View aggregate level information on the whole package with Ai-Price, our advanced pricing tool, or the Tradeweb Composite price* Evaluate spread/prices for hundreds of line items Reduce the risk of human error inherent in an Excel-based workflow Minimise information leakage by sending orders directly to a designated portfolio trader Gain additional insights by running Tradeweb’s pre- and post-trade Transaction Cost Analysis (TCA) on your portfolio

In a month filled with central bank decisions and notable political events, yields on 10-year benchmark bonds fell in January across sovereign bond markets. The biggest move came from Australia’s 10-year note, whose mid-yield plunged 48.5 basis points to finish January at 0.91%. Despite the economic disruption caused by the country’s bushfires, the Reserve Bank of Australia left the cash target rate at 0.75%, following three prior cuts in 2019.

Canada’s 10-year government bond yield experienced the second largest drop, ending the month nearly 43 basis points lower at 1.27%. The Bank of Canada maintained its overnight rate target at 1.75%, where it has stayed since October 2018. The central bank noted that while business investment had a “strong” third quarter in 2019, hiring had slowed with “unexpectedly soft” consumer confidence and spending indicators. It also reduced its growth forecast for the fourth quarter to an annual rate of...

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. 

This article originally appeared on The TRADE here.Chris Bruner, head of US credit at Tradeweb, dives into the firm’s Net Spotting solution which aims to reduce costs and risk associated around trading US corporate bonds.

How are corporate bonds hedged with US Treasuries and what are the current risks? 

For US corporate bond investors and dealers, hedging to offset interest rate exposure with US Treasuries adds a whole new layer of complexity in executing a corporate bond transaction.  These markets are intrinsically linked with the majority of corporate bond trades requiring a corresponding US Treasury hedge trade. Roughly 90% of US High Grade credit trades on Tradeweb are executed with a corresponding Treasury hedge.

Costs associated with spotting and hedging are the result of Treasury bid/ask spreads and inefficiencies that have long been embedded in workflows. When the trade is spotted, there...

The following data is derived from trading activity on the Tradeweb Markets institutional European- and U.S.-listed ETF platforms.EUROPEAN-LISTED ETFsTotal traded volumeActivity on the Tradeweb European-listed ETF marketplace reached EUR 30.7 billion in December. The proportion of transactions processed via Tradeweb’s Automated Intelligent Execution tool (AiEX) was 76%.

Adriano Pace, head of equities (Europe) at Tradeweb, said: “December capped off a record-breaking year for European ETF trading on Tradeweb. Total notional volume executed in 2019 exceeded EUR 360 billion, up 43.5% from 2018 and 117.6% from 2017. Since our launch in 2012, we’ve worked hard to provide investors with an efficient mechanism to access European ETF liquidity, and our volumes show how deeply ingrained we are in the European ETF ecosystem.”Volume breakdownAll ETF asset classes saw net buying in December, particularly fixed income and commodities products....

Achieve fast and efficient execution on a large notional trade comprising multiple bonds View aggregate level information on the whole package with Ai-Price, our advanced pricing tool, or the Tradeweb Composite price* Evaluate spread/prices for hundreds of line items Reduce the risk of human error inherent in an Excel-based workflow Minimise information leakage by sending orders directly to a designated portfolio trader Gain additional insights by running Tradeweb’s pre- and post-trade Transaction Cost Analysis (TCA) on your portfolio

With sweeping regulatory reforms and plunging interest rates, this decade brought massive challenges to fixed income market participants. The marketplace responded with wide-reaching developments in financial services technology, and an explosion in multi-asset trading.  The journey was rarely linear, but trading volumes set new records across markets virtually each year.  

Across markets and around the world, trading teams needed to find a way to do more with less. Trading strategies had to be adapted, and transaction costs became a critical discussion. At Tradeweb, we focused on making ourselves useful, using our connections across asset classes, regions, and clients to help our customers automate the busywork, operate seamlessly across time zones and assets, and do what they really just want to do anyway: find the other side of the trade.

In the passages that follow, we take a look back at some of the dynamics in fixed income markets over the past...

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