TradeWeb is the First to Offer Callable Agency Trading Using New Agency OAS Standards!
-- Activity is Significant as Investors Have Been Trading Callable Agencies Using TradeWeb's BMA-Recommended OAS Calculations for Over 2 Months --
JERSEY CITY, NJ (November 17, 2003) - On November 3rd the Bond Market Association (BMA) recommended that certain European-style Callable Agencies, including those now traded on TradeWeb, be quoted using the BMA's new Agency Option-Adjusted Spread (AOAS) calculation methodology. This recommendation came from the BMA's Callable Agency Task Force, which represented dealers, investors, brokers, vendors, and issuers. The purpose of creating these new standards was to promote liquidity in the secondary market for Callable Agency debt.
TradeWeb participated on the BMA task force, and was the first and only platform to offer investors a BMA-compliant AOAS calculator combined with electronic trading for Callable Agency issues. TradeWeb went one step further and integrated this new methodology to create a composite pricing screen, which for the first time shows investors live, two-sided AOAS and price indications for the most liquid Callable Agency securities.
Investors are increasingly utilizing TradeWeb for Callable Agencies analysis and trading because TradeWeb's AOAS calculations incorporate the most complete Agency non-call reference yield curves (Fannie Mae or Freddie Mac) derived from TradeWeb's unparalleled Bullet agency data, including short-maturity Agency securities (Benchmark and Reference Bills) for the curve's 3-month, 6-month and 1-year data points. It is also the only place where buy-side traders can access the liquidity of 16 major Agency dealers.
Since TradeWeb introduced Callable Agencies to its platform on September 3rd, more than 250 investors have executed over 1,200 Callable Agency trades.
TradeWeb is the leading online fixed-income trading network with over 4 million trades executed and total volume surpassing $34 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.