TradeWeb Innovations Take Callable Agencies Trading to New Level

| Workflows/Technology

TradeWeb Launches First Ever Callable Agencies Online Trading Platform, Complete with Dynamically Updating OAS for Buy-Side Investors 

 

JERSEY CITY, NJ (September 10, 2003) - TradeWeb, the One NetworkSM for online fixed-income trading, market data and straight-through processing, today announced the launch of its Callable Agencies product. Buy-side investors can now view accurate, indicative pricing for the largest callable agency debt securities, along with dynamically updating option-adjusted spread ("OAS") levels, all on the same screen. Investors can also execute trades of any size with leading Agency dealers.

 

TradeWeb's Callable Agencies product is the first to incorporate the Bond Market Association's recently released OAS methodology for the valuation of European-style callable securities. TradeWeb has integrated its industry-standard OAS calculator directly into the composite pricing screens, enabling investors and traders to easily compare the option-adjusted spreads of the listed callable securities, and immediately see OAS changes when bid and offer prices are updated throughout the day.

 

"The launch of Callable Agencies on TradeWeb is another hallmark for the bond markets," says Jim Toffey, CEO of TradeWeb. "The addition of Callables to our Agencies platform provides customers a level of price transparency and access to liquidity that has never existed in this market. These innovations will foster greater investor confidence and participation in this new and growing asset class."

 

Fannie Mae and Freddie Mac also see the launch of TradeWeb's Callable Agencies product as significant market advancement for their debt.

 

Linda K. Knight, Senior Vice President and Treasurer of Fannie Mae comments, "Fannie Mae is very pleased that TradeWeb continues to actively support and evolve the market making for our debt securities. We believe the introduction of Callable Agencies to its trading network is a positive step that will further meet the needs of our debt investors while contributing to enhance the liquidity for our Callable Benchmark Notes."

 

"TradeWeb's launch is an important milestone for the Callable Agencies market," said Louise Herrle, Vice President and Treasurer of Freddie Mac. "We expect trading platforms that support the Bond Market Association's OAS model will greatly contribute to the transparency and further development of this asset class."

 

Using TradeWeb's Callable Agencies product, investors have access to the liquidity of 16 of the largest market makers in Agency debt securities.

 

The new Callable Agencies product extends TradeWeb's leadership in online fixed-income trading with the following product innovations:

 

displays indicative OAS levels that dynamically update throughout the day based on feeds from multiple dealers

utilizes the BMA's OAS methodology for European-style callable securities

incorporates Agency Discount Note and non-callable Agency yields to build complete Fannie Mae and Freddie Mac bullet reference curves for OAS calculations

enables users to select current or historical TradeWeb Agency Reference Curves for their OAS calculations

provides click-to-trade capability from any Callable Agencies screen

enables straight-through processing for Callable Agencies trades

About TradeWeb

 

TradeWeb is the leading online fixed-income trading network with nearly 4 million trades executed and total volume surpassing $31 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links 24 of the world's leading dealers of fixed-income securities with more than 1,500 buy-side institutions in North America and Europe.

 

The company is also the leading electronic "straight-through processing" network for the fixed-income markets, providing dealers and buy-side institutions with paperless trade allocations and confirmations on its fully integrated TradeXpress network. TradeWeb's STP network also includes AccountNet, the leading standard settlement instructions database.

 

For more information about TradeWeb products and services, please visit the company's website at www.tradeweb.com or contact Jack Mahoney in the U.S. at (201) 536 5878 or Helena Rowe in Europe at +44 (0) 20 7776 3263.

Tags: Workflows/Technology, News Release , Tradeweb Institutional , Tradeweb Markets