First trading platform to allow simultaneous execution of multiple bonds in one package with a single counterparty
“Our portfolio trading functionality showcases Tradeweb’s unique ability to connect innovative technology with deep pools of liquidity to create greater efficiency for our clients,” said
“The expansion of our portfolio trading solution is a significant step forward for the execution of credit bonds in Europe,” said
Portfolio trading at Tradeweb enables institutional investors to package hundreds of European Credit bonds in one basket, negotiate a portfolio level price with multiple liquidity providers, and execute in a single transaction. Clients can include both buy and sell orders for individual bonds within the same portfolio trade, which allows for more efficient and timely execution. They are also able to minimise information leakage by sending orders directly to a designated portfolio trader, and reduce the risk of human error inherent in manual types of trading, thanks to end-to-end electronic workflows.
“Tradeweb’s portfolio trading solution provides the investment management community with an effective way to access liquidity for bonds that may be difficult to trade unless they are part of a package,” said
Although portfolio trading has been available in equities markets for many years, buy-side firms have now become more active in adopting the strategy of simultaneously transferring large amounts of credit risk. One of the key drivers for its increasing adoption by institutional traders is the growth of fixed income ETF assets, which has prompted higher numbers of dealers pricing thousands of bonds in real-time to facilitate the ETF creation and redemption process.
“We are excited to be working with Tradeweb to harness its portfolio trading functionality. As a result, Morgan Stanley’s Credit Algo offering is further enhancing the buy-side user experience. We’re providing our clients with efficient and transparent pricing with a greater certainty of execution,” said
The benefits of portfolio trading for buy-side investors include more cost-effective portfolio rebalancing, the ability to easily replicate a benchmark or strategy, increased liquidity for a broader set of bond instruments, improved pricing, streamlined execution workflows, risk and information leakage mitigation, and enhanced best execution. According to a
* Data as of end of
**Source: “The modernization of the bond market”,
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, the expected timing and availability of Tradeweb’s portfolio trading functionality, our future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
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