Ten Dealers Agree to Use Tradeweb’s STP Network for All Cash Fixed-Income Securities
JERSEY CITY, NJ (May 29, 2008) - Tradeweb, a leading over-the-counter multi-asset class online marketplace owned jointly by Thomson Reuters and 10 of the leading global fixed-income dealers, announced today that its dealer-owners have committed to support Tradeweb's straight-through processing (STP) platform for the full range of voice and electronically-traded fixed-income securities that they trade with customers.
The dealers that have partnered with Tradeweb are: Citi (C), Credit Suisse (CS), Deutsche Bank (DB), Goldman Sachs (GS), JPMorgan (JPM), Lehman Brothers (LEH), Merrill Lynch (MER), Morgan Stanley (MS), The Royal Bank of Scotland (RBS), and UBS (UBS).
"Reducing operational and settlement risk is a major industry objective that the dealer community takes seriously," said Vic Simone, Managing Director of Goldman Sachs, and Chairman of the Board of Tradeweb. "Our commitment to support Tradeweb's STP network for processing our customers' account allocations is a prime example of our goal to fully automate post-trade processing."
This agreement means that Tradeweb will be providing the industry with straight-through processing for an expanded range of securities, for both voice-executed trades and electronic trades. The launch of Tradeweb's expanded STP service is planned for September 2008.
"This is yet another example of the substantial synergies and value that we can realize from our strategic partnership with 10 of the world's leading global dealers," said Jim Toffey, CEO of Tradeweb. "The connectivity and content provided by these dealers will enable the industry to drive post-trade processing costs much lower than was previously possible."
"We are very pleased to have received this expanded level of support from Tradeweb's dealer partners," said Tom Eady, Managing Director and Global Head of STP Business for Tradeweb. "This increased commitment for Tradeweb's STP services by leading fixed-income dealers will enable us to quickly achieve a critical mass of electronic allocation flows, creating significant efficiency and savings for clients that use these services."
Tradeweb's STP services allow buy-side clients to:
Electronically verify trade details for block trades and then electronically process client sub-account allocation tickets
Move post-trade messaging from email, phone, or fax-based communications to a secure electronic communications network
Use a single interface and global network that provides affirmation and allocations for all fixed-income securities and OTC derivatives transactions
Maintain a complete electronic audit trail for both electronic and voice- executed transactions
The benefits of this expanded STP service for dealers and customers will include:
More efficient and secure post-trade messaging and trade status monitoring
Lower market risk with faster and more precise check-out of trade details between dealers and customers
Lower operational risk through more seamless trade processing and faster error resolution
Reduced operational costs for post-trade processing
Minimize fails by enriching the trades with valid settlement instructions maintained in AccountNet
Tradeweb is a leading over-the-counter, multi-asset class online marketplace, and a pioneer in the development of electronic trading and trade processing. The company provides services in the fixed income, derivatives, and equity markets to clients in more than 50 countries. Since 1998, Tradeweb has operated a global trading network, which harnesses the distribution of 35 major dealers with over 2,000 institutional clients. With its expansion into the equity markets, Tradeweb is leveraging AutEx, the industry leader for 40 years in providing indications of interests, and Tradeweb Routing Network, a global FIX network with more than 7,000 connections to over 750 firms. Tradeweb is owned by Thomson Reuters and 10 leading global dealers.
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