Tradeweb Markets, the leading global provider of fixed income marketplaces, has enhanced its electronic iTraxx credit default swap index platform in Europe, enabling both sell-side and buy-side clients to access the same bids and offers from liquidity-providing dealers.
This addition of interdealer trading alongside dealer-to-institutional client trading is designed to improve transparency and promote more liquid markets for all participants.
The new functionality leverages the expertise of Dealerweb, Tradeweb's inter-dealer markets business. Dealers can trade iTraxx indices with other dealers in a stable order book trading environment, providing them with a more efficient way to access liquidity, hedge risk and, as a result, support robust markets for institutional clients. In effect, institutional clients can be more confident that they can get trades done in the size they need, while accessing highly competitive pricing.
"Trading of CDS indices is a unique area where electronic trading has penetrated the dealer to-client space far faster than it has in the inter-dealer space," said Enrico Bruni, Managing Director, Head of European and Asian Business. "By bringing these market segments closer together, we're creating a more efficient marketplace that improves transparency and liquidity for all market participants."
The introduction of the enhanced iTraxx marketplace has spurred a significant increase in trading volumes. Since its February 7 launch, cumulative trading volume has been €24.8 billion, and 12 dealers are participating.
"Tradeweb has always worked in close partnership with market participants from both the buy- and sell-side to drive innovation in support of transparency, efficiency and quality liquidity for fixed income and derivatives products, said Lee Olesky, Chief Executive Officer. "This platform builds on that heritage by enhancing our iTraxx offering in a way that supports better market conditions for all."
Institutional clients will continue to have the same functionality they have always had, including multiple trading protocols, aggregated streaming levels from leading dealers, competitive multi-dealer auctions and a wide array of instruments and tenors for iTraxx indices.
Tradeweb launched electronic European and U.S. dealer-to-client trading of credit default swap indices in 2005. In October 2012, Tradeweb launched inter-dealer trading activity on its platform for U.S. CDX credit default swap indices, and since then has traded more than $287 billion, with 13 dealers providing liquidity.