TradeWeb Launches Online Trading for the Repurchase Agreements
- First Multi-Dealer Online Market for Tri-Party Repo
- Four Major Dealers Join as Liquidity Providers
- Fully Automated Post-trade Processing and Position Tracking
JERSEY CITY, NJ/ LONDON (June 9, 2005) - Thomson TradeWeb, the leading network of online fixed-income markets, and a unit of The Thomson Corporation (NYSE: TOC; TSX: TOC), today announced it has launched the first ever multi-dealer-to-customer electronic trading platform for the Tri-Party Repurchase Agreement Market, a submarket of the $5 trillion Repurchase Agreement (Repo) Market. JPMorgan, Deutsche Bank, UBS Investment Bank, and Morgan Stanley are the founding dealers for TradeWeb's latest online market.
During the initial phase of TradeWeb Repo's roll-out, institutional investors located in the U.S. are able to view live commingled dealer repo rates, electronically execute trades, and electronically process and allocate trades - all on one platform in a seamless workflow. This new platform also introduces a position-tracking monitor, which allows users to not only view their outstanding repo positions in real-time, but also easily roll them at maturity. TradeWeb Repo allows electronic trading, position tracking, and processing for tri-party repo that is collateralized by U.S. Treasuries.
Later this summer, TradeWeb will begin phase two of its roll-out, which will allow investors to electronically execute and process repurchase agreements for additional asset classes, including mortgage-backed securities, U.S. Agencies, and "other collateral." Also, a number of additional dealers are expected to join TradeWeb Repo's dealer group over the next few months.
Jim Toffey, Chief Executive Officer of Thomson TradeWeb, commented, "The repo market for fixed income is a natural candidate for electronic trading, and in particular TradeWeb. It is a technically-complex market with high volumes that requires very efficient trade processing and counter party management tools. With this launch, TradeWeb brings to the repo market its proven capability of building efficient online markets that enhance dealer-to-customer trading flows."
Joseph Randazzo, Managing Director at Deutsche Bank Securities, added, "Deutsche Bank Securities Inc. is pleased to be a founding member of TradeWeb electronic trading platform for Repo. Our participation demonstrates Deutsche Bank's strong commitment to utilizing technology to meet our clients' needs of increased transparency in trade execution and seamless trade processing."
Harrell Smith, Manager of the Securities and Investments Practice at Celent said, "Repo trading is migrating to a predominantly electronic medium. In the client markets, multi-dealer platforms will supersede single-dealer platforms as the execution venues of choice. TradeWeb's foray into electronic repo trading represents a natural extension of the firm's strength in cash trading and integrated STP solutions."
TradeWeb Repo is TradeWeb's 12th online market and the 3rd that caters to its customers who are involved in money markets.
About Thomson TradeWeb
TradeWeb is the leading online fixed-income trading network with over 7 million trades executed and total volume surpassing $75 trillion since its inception in 1998. TradeWeb's multi-dealer auction model links the trading desks of 35 of the world's leading fixed-income dealers with more than 2,000 buy-side institutions in North America, Europe and Asia.
The business 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 and first independent counterparty management tool for the interest rate swaps customer-to-dealer market.
Thomson TradeWeb operates within the Thomson Financial group of businesses. TradeWeb LLC is a member of the NASD. TradeWeb Europe Limited is regulated by the U.K. Financial Services Authority.
About Thomson Financial
Thomson Financial is a US$1.73 billion provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (www.thomson.com), a global leader in providing integrated information solutions to more than 20 million business and professional customers in the fields of law, tax, accounting, financial services, higher education, reference information, corporate e-learning and assessment, scientific research and healthcare. With revenues of US$8.10 billion, The Thomson Corporation lists its common shares on the New York and Toronto stock exchanges (NYSE: TOC; TSX: TOC).