Thomson TradeWeb, the new name for the fixed income trading platform TradeWeb that was acquired by Thomson earlier this year, had record volume in the third quarter of 2004.
Over $7 trillion in fixed-income securities was traded on TradeWeb’s platform, up 35% from the same period last year and an 11% increase over the second quarter of 2004.
The increase in volume was distributed across multiple asset classes with record volume levels set in US Treasuries, TBA-MBS, Commercial Paper, Agency Discount Notes, European Government Bonds, and Pfandbriefe/Covered Bonds.
“So far 2004 has been a tremendous year for TradeWeb. The volume levels speak for themselves,” says Jim Toffey, CEO of Thomson TradeWeb. “Demand for our market data, trade execution and straight-through processing services keeps building as the buy-side and sell-side continue to recognize TradeWeb as the premier online marketplace.”
Lee Olesky, President of Thomson TradeWeb, says that TradeWeb continues to expand geographically. “With our multi-asset class and global approach, institutional investors, dealers and issuers now recognize the compelling value that TradeWeb’s network of online markets delivers,” he says.
The company says that, in the past quarter, TradeWeb saw significant increases in trading from an expanding base of asset managers, hedge funds, bank portfolios, and central banks. Of the total volume executed in the third quarter, 52% came from trades of $100 million or larger, up from 43% during the same period last year.
“Clearly, institutional investors have grown more comfortable with executing sizeable transactions electronically,” says a spokesman for Thomson Tradeweb. “Dealer interest in TradeWeb also continued to build with 24 additional dealer trading desks joining as liquidity providers in TradeWeb’s online marketplaces since the beginning of the year.”
Thomson Tradeweb says growing customer acceptance and rising market share boosted TradeWeb U.S. Treasury and Agency trading volumes to a combined $2.4 trillion – a new record. TradeWeb’s Treasury marketplace reached a record milestone, recording its largest single trading day volume – $64 billion – in September.
Volume in TradeWeb TBA-MBS exceeded $2.3 trillion in the third quarter, up 43% from the same period last year. TradeWeb TBA-MBS also recently experienced its single largest day, registering a record trading volume of $94 billion in mortgage pass-throughs.
TradeWeb Money Markets (CP and ADNs) volume increased by 17% over the last quarter to $1.4 trillion – a new record overall and for each individual market.
Dealer and buy-side support of TradeWeb Corporates continued to grow. Now nine of the largest corporate bond dealers provide liquidity to more than 175 buy-side institutions, with over 450 institutional credit traders. On a quarter to quarter basis, the number of trade inquiries and accepted trades more than doubled.
TradeWeb European Government Bond trading volume experienced significant growth reaching EUR396 billion this quarter – a 43% increase over the same period the previous year. During September, TradeWeb launched European T-Bills and short European Governments including CTZs.
Volume in TradeWeb European Commercial Paper increased to EUR41.3 billion in the third quarter, up 180% compared with the same period the previous year. Pfandbriefe/Covered Bonds also experienced growth, with volumes for the quarter up 151% over the same period in 2003.