Global investors’ access to China bonds just got more streamlined

| Tradeweb Institutional

Launch of list trading feature evolves traders’ CIBM execution workflow

When it comes to the Chinese bond market, no one understands global investors’ needs better than Tradeweb. We’ve had the unique privilege to be involved in the design, development and implementation of the Bond Connect initiative from the very start, thanks to our long-term expertise in global fixed income markets, extensive client network and advanced technology offering. Being the first trading link to Bond Connect enabled us to amass invaluable experience in further streamlining buy-side traders’ access to the China Interbank Bond Market (CIBM).

Last year Tradeweb became the first access platform to facilitate pre- and post-trade allocations on Bond Connect, allowing offshore investors to trade on behalf of multiple funds in one block transaction. In addition, Tradeweb is still the only Bond Connect platform offering automated trading for Chinese Bonds. Via our Automated Intelligent Execution (AiEX) tool, clients can trade directly from their order management systems (OMS) to a set of pre-defined rules tailored to their specific requirements. This frees traders to focus on more complex transactions, which require more time and effort, and also reduces compliance and operational risk.

However, our innovation journey did not stop there. Earlier this year we enhanced our block allocation solution by increasing the number of sub-accounts from 30 to 50. We also introduced new functionality such as dealer streaming prices and iDeal, the messaging tool developed by the China Foreign Exchange Trade System (CFETS). Our latest development came this week with the launch of list trading on Bond Connect. The feature helps clients create and execute lists of CIBM instruments quickly and efficiently, by directly sending them to multiple China onshore dealers and negotiating a large number of trades to achieve the best possible price, all in one go.

Before Tradeweb implemented list trading on Bond Connect, the price sourcing process could take up to half a day. Now buy-side traders can send up to 40 trades in a single list and receive quotes back within a specified time window, benefitting from flexible counterparty selection for each list item, as well as OMS integration and straight-through processing advantages. List trading has been available on Tradeweb across our other products for many years, so global investors are already familiar with the streamlined workflow efficiencies it provides. Ultimately, this familiarity and ease-of-access can only help the further growth of Bond Connect, and the adoption of China bond trading by the offshore investor community.

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