06/17/2009
Tradeweb is fully supportive of the moves today towards stronger oversight of the OTC derivatives markets. The new regulations will drive increased market efficiency and transparency by requiring the clearing of standardized contracts through regulated central counterparties, and moving trading in the OTC derivatives markets to regulated trade execution systems. These electronic platforms, such as Tradeweb, offer the most flexible, proven trading model for the OTC markets.
Lee Olesky, CEO of Tradeweb commented, "OTC products are far more numerous and diverse than equities and futures markets. As a result, they demand a special commitment of liquidity from dealers. Electronic OTC derivatives markets are still at an early stage in their adoption, but we have already seen vigorous growth in trading activity."
It is essential that central counterparty clearing mechanisms offer equal access to multiple trading platforms. This strikes the right balance between fixing systemic problems and encourages market innovation that broadens access to credit for governments, people and businesses.
Tradeweb launched its regulated electronic OTC derivatives markets in 2005. Since then:
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Clients have executed more than 36,000 trades
- Over $4 trillion in contracts have been traded by clients
- 130 institutional clients are actively trading on the platform
- Dealers have been providing real-time pricing since the onset, offering clients significantly increased levels of market transparency
- Tradeweb displays real-time trade-validated bid and offer levels and distributes these prices through the Thomson Reuters network and other channels.
