TradeWeb to Launch Online U.S. Dollar Denominated Interest Rate Swaps Market
- First Global Electronic Auction-Based Trading Platform for US Dollar Denominated Swaps
- Seven Major Dealers Join as Liquidity Providers
- Fully Automated Post-Trade Processing with ISDA Compliant Electronic Confirms
JERSEY CITY, NJ (May 18, 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 will be launching a dealer-to-customer electronic trading platform for US Dollar denominated interest rate swaps during the 3rd quarter of 2005. With the strong backing of seven major dealers, TradeWeb's new swaps platform (TradeWeb IRS) will be the first integrated platform in the U.S. Dollar denominated swaps market to provide institutional investors with electronic multi-dealer auctions and fully automated post-trade processing complete with ISDA-compliant electronic trade confirmations.
The initial members of TradeWeb IRS are JPMorgan, Merrill Lynch, Barclays, ABN AMRO, Dresdner Kleinwort Wasserstein, HSBC, and Wachovia. Collectively these dealers provide significant liquidity in the OTC swaps market. Over TradeWeb, institutional investors will have the ability to simultaneously request quotes from multiple dealers electronically and move from trade execution seamlessly to electronic processing. The unique power of TradeXpress, TradeWeb's award-winning Straight-Through Processing (STP) network, is its ability to efficiently manage the complex information flow and documentation warehousing that comes with OTC swaps trading. Given the 100% plus growth rate in interest rate derivatives trading over the past few years, dealers and buy-side institutions now have a significant need to reduce operational risk and processing costs. TradeWeb IRS provides the solution to meet both objectives.
Jim Toffey, Chief Executive Officer of Thomson TradeWeb, commented, "We are delighted with the high level of dealer commitment to TradeWeb's U.S. Dollar denominated swaps trading platform. The OTC swaps market is at a critical stage of development and for it to continue its exceptional growth new technology and methods of trading need to be implemented by the market."
Matthew E. Zames, Managing Director of JPMorgan said, "Continuing on the success of the Euro derivatives launch, JPMorgan believes electronic execution and trade processing for US Dollar derivatives adds an important tool further enhancing liquidity for our clients. By being able to trade electronically, our clients will have a more efficient and cost effective way to execute their derivatives business."
"We're pleased to offer our clients additional distribution for Barclays' established, market-leading Swap liquidity," said Michael Bagguley, Managing Director, Barclays Capital. He added, "As a top 3 dealer by volume in U.S. Treasuries, Agency Discount Notes and TIPS on TradeWeb, we look forward to building on our leadership with the addition of our Swaps pricing."
Paul Humphrey, Global Head of Fixed-Income eBusiness at ABN AMRO , said, "ABN AMRO is pleased to be a founding member providing executable interest rate swap prices to the new TradeWeb US Dollar initiative. Building on our initial presence as a founding member of TradeWeb for Euro denominated interest rate swaps, ABN AMRO is committed to providing electronic liquidity and greater efficiencies to our customers."
Mark Enman, Head of US Dollar Rates Trading at Dresdner Kleinwort Wasserstein , added "This is a logical step in DrKW's strategy to build its Interest Rate business and extend our reach through the TradeWeb platform and also continues our goal of providing electronic access and price transparency to clients wherever possible."
Michael Lawroski, Head of Rates Trading at Wachovia Securities , commented "TradeWeb's new swaps trading platform, with its extensive straight-through processing capabilities, will greatly enhance our ability to execute and process our customers' business. As one of the fastest growing derivatives franchises, Wachovia is pleased to be among the leaders in driving a market innovation that lowers costs and reduces operational risk."
TradeWeb IRS for U.S. dollar denominated swaps is TradeWeb's 13th online market and 2nd for derivatives. TradeWeb recently launched electronic trading for Euro denominated swaps. TradeWeb also recently announced that it will soon be adding electronic trading for credit default swap indices.
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 34 of the world's leading fixed-income dealers with more than 2,000 buy-side institutions in North America, Europe, and Asia. Nearly $150 billion in trading volume gets executed over TradeWeb each day.
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 first derivatives counterparty management tool and the leading data warehouse for standing settlement instructions and OTC derivatives legal documentation.
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).