Tradeweb.com
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    The endless pursuit of better trading

    Trading is the engine that powers the fixed income and derivatives markets. At Tradeweb, we’ve spent close to 15 years researching and developing the world’s finest electronic trading platforms, tuning protocols and functionality to provide clients with the best possible way to transact business.

    Better markets benefit clients by providing faster, more efficient and compliant ways to get business done. In short, electronic markets improve performance. By connecting the world’s leading market participants, we enable buy-side clients to simultaneously engage with multiple dealers to execute trades in real-time. Our compliance tools then capture critical transaction data to provide a permanent audit trail.

    Our role is to support the trading activities of our clients. We don’t look to fundamentally change the way the market operates. The fixed income and derivatives over-the-counter markets have grown rapidly over the past decade but the role of the liquidity provider hasn’t changed.  Sell-side trading desks continue to enable asset managers, corporations, banks, governments, and other institutional investors around the world to better manage their asset and liabilities. We support this global flow of funds by delivering more efficient trading tools, streamlining the way business gets done.

     
    Protocols we offer
    Tradeweb offers a broad range of trading protocols, calibrated for each marketplace. The evolution of these electronic markets reflects the needs of market participants. In general, the more liquid a marketplace, the more likely it is that it operates in a real-time environment. Less liquid marketplaces tend to rely on positions or orders being posted, or negotiation taking place on trading terms. Our market specialists and a large team of dedicated financial engineers work closely with both buy- and sell-side participants as we develop new electronic marketplaces. The trading protocols we use in our various institutional client-to-dealer markets include: 

    • Request-for-quote. The multi-dealer RFQ is the grandfather of electronic trading. Pioneered by Tradeweb in 1998, it has been deployed across all our global interest rate markets, including government bonds, mortgages and U.S. agencies. The RFQ is a fully-disclosed trading protocol; both buy-side and sell-side names are known prior to execution. It enables an institutional client to hold a real-time auction with multiple dealers and select the best price.

    • Request-for-market. The RFM is a more recent protocol that provides an institutional client with the ability to request a two-sided market from a particular dealer. This mirrors the approach of a client calling a specific trader for a market. The RFM has been used to good effect in some of our newer markets, including credit default swap indices, where it is integrated with the RFQ and click-to-trade protocols on a single trading screen.

    • Click-to-trade. The click-to-trade functionality enables a buy-side client to view a set of prices in real-time and click on the price and the dealer with whom they wish to execute. The trader then confirms the trade and the deal is done. This trading style is especially popular with clients that are looking to view a range of executable, real-time prices across dealers.

    • Inventory-based. This protocol is most commonly deployed in less liquid markets, such as credit and some money markets. It allows the sell-side to provide a range of bids and offers for particular securities that the client can then look to execute on. These prices are not updated in real-time but provide a good indication of where the client is likely to complete the trade. 

    • List trading. Used by clients with multiple transactions to complete, the list trade is a highly efficient workflow tool. By executing many trades at once, clients can request prices from multiple dealers to extract the best price, and complete the hedging of the trades at one time, saving on significant manual effort compared to executing on the telephone. List trading is especially popular in the credit markets.

    While these trading protocols represent the majority of transactions that are executed on Tradeweb, there are many different variations within the individual marketplaces. Tradeweb is always looking to extend the range of trading styles available, where it makes sense for the end-user.

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