Tradeweb Launches Trading for U.S. Treasury Floating Rate Notes
Tradeweb has added U.S. Treasury Floating Rate Notes (FRNs) to its institutional Treasury trading platform with liquidity from 16 dealers. FRNs are the first new security launched by the Treasury since 1997, and will have a two-year maturity with a rate that is indexed to the highest accepted discount rate of the most recent 13-week Treasury bill auction, and will be reset when the bill is auctioned each week. As interest rates rise, the security’s interest payments will increase, and vice-versa.
By trading Treasury FRNs on Tradeweb, customers gain efficient access to liquidity in a transparent, electronic marketplace for a suite of Treasury securities. Market participants can view the securities on a new composite page (FRN) accessible via the left-side menu of the Tradeweb Viewer and a tab on the bottom of the screen. In addition to a composite of discount margins contributed by participating dealers, Tradeweb will provide corresponding effective coupons, prices and simple yields for calculation purposes. FRNs can be traded on Tradeweb as an outright security or as a two-security swap versus another FRN, Bill or Note.