TradeWeb, the online fixed-income trading platform, executed trades worth $10.8 trillion in 2002 – with peak volumes hitting over $80 billion a day and monthly volumes of over $1 trillion. The platform includes 19 major dealers and over 1,200 fund managers.
“Our record volumes prove that e-commerce has grown dramatically in the bond markets during the past year,” says Jim Toffey, CEO of TradeWeb. “Many customers tell us that they now do the vast majority of their trades – often 80 per cent or more — on TradeWeb.”
During 2002, TradeWeb also enhanced its straight-through processing (STP) system capabilities for both customers and dealers with the launch of TradeXpress – a paperless account allocation and trade confirmation network. TradeWeb says both customers and dealers benefit from greater efficiency and reduced trade failures by using TradeXpress, so lowering overall operating costs. To date, more than 200,000 trades — valued at over $1 trillion — have been electronically allocated and confirmed by users of TradeXpress.
“We continue to be impressed by the growing number of larger size trades that are being done on TradeWeb,” adds Toffey. “Every month, we see more than 2,000 trades of $100 million or greater in size get done on TradeWeb. But when you think about it, it makes perfect sense. The larger the trade, the greater the potential savings for the client.”
TradeWeb’s volume growth was assisted by the introduction of new trading products during the year, such as US Agency Discount Notes, Pfandbriefe, and Supranationals, and by extended trading hours for U.S. Treasuries in Europe.
“We are confident that TradeWeb’s trading model and continued aggressive expansion into new fixed-income markets will provide more success for the future,” concludes Lee Olesky, President of TradeWeb and CEO of TradeWeb Europe. “We are adding more dealers and products to the European platform in 2003, and we are excited about the continued growth prospects for our business.”
TradeWeb has now executed more than 3 million trades worth over $19 trillion since its inception in 1998. TradeWeb’s multi-dealer auction model links nineteen of dealers in fixed-income securities with more than 1,200 buy-side institutions in North America and Europe.
TradeWeb’s proprietary auction model enables institutional investors to receive live price quotes simultaneously from their key dealers and trade instantly. Users can connect to TradeWeb’s network using software that installs in minutes and runs on their existing computer hardware.
The company also provides fixed-income market professionals with market data for the liquid fixed-income securities traded on its platform. Real-time market data is available either directly from TradeWeb over the Internet or through a data distribution agreement with MoneyLine Telerate.
TradeWeb also provides straight-through processing of fixed-income trades, providing dealers and customers with paperless trade allocations and confirmations on its TradeXpress network.