Tradeweb Introduces Next Generation Spotting for U.S. Credit Trading

Rhea-AI Summary

Tradeweb Markets Inc. (Nasdaq: TW) has launched Multi-Client Net Spotting, enhancing access to the U.S. Treasury market for credit market participants aiming to hedge risk. This new tool builds on Tradeweb's Net Spotting introduced in 2019, improving efficiency by allowing clients to net hedging activities simultaneously. With an average daily volume of $22.1 billion in credit trading, Tradeweb achieved a record TRACE market share in U.S. High Grade and High Yield bonds, facilitating 19.3% and 6.9% market shares respectively.

Positive

• Launch of Multi-Client Net Spotting tool enhances efficiency for hedging in U.S. Treasury market.
• Average daily volume in credit trading reached $22.1 billion, indicating strong market activity.
• Achieved record TRACE market share in U.S. High Grade and High Yield bonds.

Negative

• None.

Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has launched Multi-Client Net Spotting, a new tool that significantly enhances how credit market participants access the U.S. Treasury market to hedge their risk.

Multi-Client Net Spotting represents the next generation of electronic Net Spotting, an innovation that Tradeweb first introduced in 2019. Electronic spotting links a firm’s trading in the institutional credit market to the U.S. Treasury marketplace all within the Tradeweb platform, replacing the cumbersome process of manually spotting spread trades with one that enables hundreds of billions of credit trading flow to be hedged electronically. The tool has grown quickly in popularity, with $818 billion submitted for spotting during 2020.

While Net Spotting allows clients to efficiently aggregate and net Treasury spots across transactions, and dealers to hedge without delays, Multi-Client Net Spotting improves on the process by netting hedging activity across all Tradeweb clients spotting at the same time.

Chris Bruner, Head of U.S. Credit at Tradeweb said: “In the past year clients around the world have shifted primarily to an all-virtual environment, and modernizing manual processes has become a core focus. Manually spotting trades can often cause a delay of several minutes, as well as create significant interest rate risk, affecting the all-in price of the corporate bond. Multi-Client Net Spotting allows for all Tradeweb clients, regardless of their size or trading strategy, to efficiently hedge and reap the benefits of our vast network.”

Spencer Lee, Partner and Head of Trading at Agilon Capital LLC, said: “Net Spotting functionality at Tradeweb has always been such a significant savings for our trading operation – both in time and real dollars. Now adding in the ability to net one’s directional risk with that of other users on the platform only increases the opportunity for more savings. It is really an easy choice to incorporate this new enhancement.”

Over the past year, Tradeweb’s credit platform has continued to see significant growth with average daily volume in credit trading globally at Tradeweb averaging $22.1bn. Last quarter, Tradeweb captured a record share of TRACE in U.S. High Grade and U.S. High Yield bonds, with fully electronic trading representing the majority of each. In December, Tradeweb facilitated 19.3% of U.S. High Grade market share and 6.9% of TRACE High Yield market share.

About Tradeweb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $830 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. In particular, preliminary average variable fees per million dollars of volume traded are subject to the completion of management’s final review and our other financial closing procedures and therefore are subject to change. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

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FAQ

What is Multi-Client Net Spotting by Tradeweb (TW)?

Multi-Client Net Spotting is a tool launched by Tradeweb that allows credit market participants to enhance their access to the U.S. Treasury market for risk hedging, enabling clients to net hedging activities simultaneously.

How does Tradeweb's new tool improve trading efficiency?

The new tool improves trading efficiency by replacing the manual process of spotting trades with an electronic system that links trading in the institutional credit market to the U.S. Treasury marketplace.

What was the average daily volume for Tradeweb (TW) in credit trading?

Tradeweb reported an average daily volume of $22.1 billion in credit trading globally.

What market shares did Tradeweb (TW) capture in U.S. bonds?

Tradeweb captured 19.3% of the U.S. High Grade market share and 6.9% of the TRACE High Yield market share.