JP Morgan Takes Equity Stake in TradeWeb
Global Online Bond Trading Network's Investor Group Now Includes Eight Of World's Premier Financial Institutions
New York, NY (January 16, 2002) -- TradeWeb LLC, the leader in online fixed-income markets, today announced that J.P. Morgan, the investment banking arm of J.P. Morgan Chase andamp; Co., has made a significant equity investment in the company, and will obtain a seat on its Board of Managers. J.P. Morgan, already an active market maker for several of TradeWeb's online marketplaces, joins an elite group of global bond dealers that are equity investors in TradeWeb. The other investors are Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley and Salomon Smith Barney.
J.P. Morgan's investment in TradeWeb comes at a time when demand is surging for the company's online fixed-income markets, which link major dealers to their institutional clients on an integrated global electronic trading network. TradeWeb recently eclipsed $8 trillion in total trading volume since trading began in 1998, with half of that volume occurring just within the past seven months.
J.P. Morgan will now serve as a market maker for all of TradeWeb's online fixed-income markets including TBA mortgages and US Commercial Paper. It previously participated in TradeWeb's Treasuries and Agencies markets, as well as in its Euro Sovereign online market operated by TradeWeb Europe Ltd., a London-based affiliate that serves European-based dealers and their clients. TradeWeb Europe has garnered a leading market share of electronic trading in large, liquid euro-denominated government bond issues since trading began in late 2000.
"We are very pleased to welcome J.P. Morgan as an equity investor in TradeWeb," said Jim Toffey, President and CEO of TradeWeb. "J.P. Morgan is one of the world's largest financial institutions with a leading fixed-income business. Its increased role in our company is a reflection of our position as the world's preeminent dealer-to-client electronic trading platform for liquid bond markets."
Mark Werner, Managing Director and Head of Global Rate Securities at J.P. Morgan, said: "This financial investment has dual significance for J.P. Morgan. First, it gives us an equity stake in a rapidly growing financial services business. More importantly, the investment cements our relationship with a company that provides a service that is becoming indispensable to our clients. This is a win-win partnership."
Vic Simone, Managing Director of Goldman Sachs and the 2001 Chairman of the Board of TradeWeb, added: "TradeWeb's investor and dealer groups welcome J.P. Morgan's increased role in the company. This equity investment by J.P. Morgan signals a deeper commitment to TradeWeb as an industry partner for electronic transaction initiatives."
Headquartered in the United States, TradeWeb LLC is the global leader in online fixed-income markets with more than 1.5 million trades executed and total volume exceeding $8 trillion since its inception in 1998. TradeWeb's multi-dealer model links eighteen of the world's leading dealers of fixed-income securities with more than 1,000 buy-side institutions in North America and Europe. The company's technological platform is utilized by clients to trade U.S. Treasury and agency debt securities, TBA agency mortgage-backed securities, commercial paper, euro-sovereign debt securities and Pfandbriefe. For more information about TradeWeb, please visit the company's website at www.tradeweb.com or contact Thomas Eady at 201/499-4064.
About J.P. Morgan Chase and Co.
J.P. Morgan Chase and Co. is a leading global financial services firm with assets of $700 billion and operations in more than 50 countries. With relationships with over 99% of the Fortune 1000 companies, the firm is a leader in investment banking, asset management, private banking, private equity, custody and transaction services, retail and middle market financial services, and e-finance. A component of the Dow Jones Industrial Average, J.P. Morgan Chase is headquartered in New York and serves more than 30 million consumer customers and the world's most prominent corporate, institutional and government clients. Information about J.P. Morgan Chase is available on the Internet at www.jpmorganchase.com.