European credit volume on Tradeweb doubles
Tradeweb Markets LLC has introduced Central and Eastern Europe, Middle East and Africa (CEEMEA) bonds to its electronic cash credit marketplace. This development is part of Tradeweb’s ongoing growth strategy for its credit business and follows the relaunch of its CDS indices platform, and the introduction of high-yield bonds and Asian credit. Tradeweb is planning further expansion, driven by demand from institutional investors for a wider range of global cash credit assets.
The addition of CEEMEA bonds follows a period of high growth in European cash credit volumes on Tradeweb. In Q2 2012, trading volume reached €22.1 billion, a 17% increase on the same period in 2011. Trades worth €27.6 billion were executed in the third quarter of 2012 – a 109% year-on-year increase. This record growth in trading activity is despite a slowdown in activity in the overall credit market.
“We are actively expanding our offering to meet demand from our clients for a wider suite of products”, said Rupert Warmington, director of European credit markets at Tradeweb. “Although it’s currently a difficult environment for credit markets, more than 85% of volume on the platform is executed by real-money institutions, such as asset managers, that continue to seek greater efficiency in the trading of cash credit bonds.”
The new CEEMEA marketplace allows institutional investors to trade euro, sterling and US dollardenominated bonds from sovereign, agency, corporate and financial issuers from the CEEMEA region. Thirteen of the existing 29 European credit dealers are already supporting the platform, with more in the pipeline.
Clients can put up to six dealers into competition using the request-for-quote (RFQ) protocol pioneered by Tradeweb, or view and trade on real-time, indicative streaming prices from individual dealers. The marketplace also supports list trading, where up to 20 bond trades can be executed simultaneously, and provides a suite of bond analytics to support trading decisions.