TradeWeb says its dealer-owners have committed to use its expanded straight-through processing (STP) platform for the voice and electronically-traded fixed income securities that they trade with customers.
The banks committed to use the extended platform - which will launch in September - are Citi, Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Royal Bank of Scotland and UBS.
The system will enable buy-side clients to electronically verify details for block trades and then process client sub-account allocation tickets. Customers will also be able to move post-trade messaging from open communications - like e-mail and phone - to a secure e-communications network and maintain an electronic audit trail for transactions.
TradeWeb says benefits for dealers include secure post-trade messaging and trade status monitoring, reduced market risk and lower operational risk through more seamless trade processing and faster error resolution.
TradeWeb says the expanded service will mean more efficient and secure post-trade messaging and trade status monitoring as well as lower market risk with faster and more precise check-out of trade details between dealers and customers.
"This is yet another example of the substantial synergies and value that we can realise from our strategic partnership with 10 of the world's leading global dealers," says Jim Toffey, CEO, Tradeweb. "The connectivity and content provided by these dealers will enable the industry to drive post-trade processing costs much lower than was previously possible."
Vic Simone, MD, Goldman Sachs and chairman of the board, Tradeweb, adds: "Reducing operational and settlement risk is a major industry objective that the dealer community takes seriously. Our commitment to support Tradeweb's STP network for processing our customers' account allocations is a prime example of our goal to fully automate post-trade processing."
Last October nine of the banks listed paid Thomson Financial $180 million to purchase a minority stake in TradeWeb. They had originally sold the platform in 2004 amid regulatory concerns over potential conflicts of interest and competition issues in dealer-owned networks. Citi joined the nine in April, acquiring an undisclosed minority equity stake.
Many of the dealers backing Tradeweb - including Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland and UBS - were also involved in rival platform LiquidityHub, the central fixed income pricing aggregator for swaps trading which folded in March.