Thomson TradeWeb Reports Q3 2006 Trading Volume of $12.8 Trillion
JERSEY CITY/LONDON (October 30, 2006) - Thomson TradeWeb, part of The Thomson Corporation (NYSE: TOC; TSX: TOC), a leading global provider of integrated information solutions to professional customers, today announced that TradeWeb, the leading global network of online fixed-income and derivatives markets, reported total global trading volumes of $12.8 trillion for the third quarter of 2006, a 17% increase compared to the same period in 2005. The increase in trading volumes was primarily attributable to new marketplaces, especially Triparty Repo.
The Euro and U.S. Dollar swap markets, which were launched in 2005, performed well over the quarter. European Credit, which debuted in March 2006, also made a promising start.
"It is encouraging to see clients respond positively to our new markets. TradeWeb has always been a pioneer in online marketplaces but the successful introduction of electronic derivatives trading is clearly a highlight of the year," said Jim Toffey, Chief Executive Officer of Thomson TradeWeb.
"We're pleased with the third quarter trading volumes, which further demonstrate the leadership position that TradeWeb has established across the Fixed Income and Derivatives marketplaces," said Lee Olesky, President of Thomson TradeWeb.
Among the highlights for the quarter:
Rates
- Interest Rate Swaps: Global swap trading is growing well, with overall volume (excluding Overnight Index Swaps) up 23% compared to Q2 (up 154% over Q3 2005, a quarter during which U.S. dollar swap trading was launched). OIS volume was up 176% over the same quarter a year earlier.
- Government Bonds: TradeWeb set a new record for weekly accepted volume in European Governments of €49.5bn during the week of September 25. This capped a strong quarter, which included the successful launch of the CCT (Italian floating-rate notes) business. In the U.S. Treasury market, especially active trading was seen for STRIPS and TIPS, where record volumes were noted for both sectors.
- TBA-MBS: TradeWeb continues to be the clear market leader for clients looking to trade mortgage pass-throughs. Over a trillion dollars has now been traded for 21 consecutive months. The TBA-MBS business on TradeWeb is broad-based, with a record $35 billion of butterfly trading in September alone. Ginnie Mae II trading is now available and clients have access to a range of trades, including: Coupon Swaps, Product Swaps, Basis Swaps, Butterfly Trades and MBS vs Interest Rate Swaps.
Credit
- European Credit: A strong start for this new marketplace, with trading volumes rising fast. September trading volume rose 33% compared to the previous month, with more than 50 clients executing trades. There are now nine dealers providing liquidity to over 150 users in Europe, with more joining every month.
- U.S. Corporates: A noteworthy quarter because of the slew of new functionality introduced to clients, including dollar price trading.
Money Markets
- Commercial Paper: A record quarter in Europe and the U.S., with gains of 23% posted, compared to the same period in 2005. Over $2 trillion was traded in Euro and U.S. Commercial Paper in the third quarter.
STP
- 100thClient Integration: During the third quarter, TradeWeb also completed its 100th integration into a client's order management system. This milestone reflects the escalating importance that institutional users are placing on seamless integration of the trading workflow. TradeWeb has a unique alliance with seven leading order management systems to provide these integrations. Each week, on average at least two client integrations are being completed. Clients that have integrated TradeWeb directly into their internal systems now account for a significant portion of total TradeWeb trading volumes.
- TradeXpress: Allocation volume topped $6.9 trillion, up 48% over Q3 2005. Over 500,000 allocation tickets were processed, an increase of 15% over the previous year.
About Thomson TradeWeb
TradeWeb is the leading online fixed-income and derivatives trading network with over 10 million trades executed and total volume surpassing $145 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links the trading desks of 35 of the world's leading dealers with more than 2,200 buy-side institutions in North America, Europe, and Asia. Over $200 billion in trading volume gets executed over TradeWeb each day.
The business is also the leading electronic "straight-through processing" network for the fixed-income markets, providing dealers and buy-side institutions with paperless trade allocations and confirmations on its fully integrated TradeXpress network. TradeWeb's STP network also includes AccountNet, the first derivatives counterparty management tool and the leading data warehouse for standing settlement instructions and OTC derivatives legal documentation.
Thomson TradeWeb operates within the Thomson Financial group of businesses. TradeWeb LLC is a member of the NASD. TradeWeb Europe Limited is regulated by the U.K. Financial Services Authority.
About Thomson Financial
Thomson Financial, with 2005 revenues of US$1.9 billion, is a provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation, a global leader in providing integrated information solutions to more than 20 million business and professional customers in the fields of law, tax, accounting, financial services, higher education, reference information, corporate e-learning and assessment, scientific research and healthcare. With revenues of US$8.4 billion, The Thomson Corporation lists its common shares on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).