Thomson TradeWeb, part of The Thomson Corporation (NYSE: TOC; TSX: TOC), a major global provider of integrated information solutions to professional customers, today announced that TradeWeb, the leading global network of online fixed-income and derivatives markets, reported $12.3 trillion in total volume executed by its market participants in the second quarter of the year, an 18% increase over the same period in 2005.
Over the six months ending June 30, TradeWeb volumes rose 29% compared to the previous year.
Strong growth was seen in a number of markets, most notably interest rate swaps. Global swaps volume jumped 303% in the second quarter compared to Q2 2005, driven by active trading of overnight index swaps (OIS), widespread adoption of TradeWeb's Euro interest rate swaps market and the successful launch of U.S. Dollar swap trading in September 2005. TradeWeb also reported active trading in its triparty repo market.
"There is no doubt that electronic trading is the future for the derivatives markets. With the help of our dealers and customers, TradeWeb is already building a pre-eminent interest rate swap franchise. The success we have enjoyed to date reinforces our commitment to building and supporting the most efficient trade execution and processing network in the business,” said Jim Toffey, Chief Executive of Thomson TradeWeb.
"It's been a strong first half of the year for TradeWeb, especially noteworthy for the robust performance of our swaps franchises. Not only have we seen good growth from these new markets, but we have had avery active six months in many of the more established businesses, such as Gilts and ECP," said Lee Olesky, President of Thomson TradeWeb.
Among the highlights for the second quarter of the year:
Credit
TradeWeb's Credit business was a key focus of the business in the second quarter, with a number of major initiatives announced and milestones achieved.
- European Credit was launched, providing clients with a sophisticated tool for trading European debt. Among its unique features are the ability to price bonds in real-time against TradeWeb’s composite government bond prices and swap rates
- Corporate Bond volume in the U.S. surged 139% in the second quarter, compared to Q2 2005
- CreditXpress was unveiled, providing the industry with the first comprehensive solution for trade processing in the credit markets
- In Credit Derivatives, TradeWeb performed strongly, with volumes increasing 26% in May versus April and a further 61% in June compared to May
Money Markets
TradeWeb's Money Markets franchise had a record quarter, exhibiting exceptionally strong growth, both in the U.S. and Europe, helped by the demand for short-dated paper and the consequent expansion in CP outstandings.
- Euro-commercial paper volumes grew by 40% in the second quarter, compared to a year earlier. More than 1,000 trades are now being executed monthly on TradeWeb in Europe
- Commercial paper trading in the U.S. jumped by 32% in Q2 2006, compared to the previous year
Rates
U.S. Treasuries, TBA-MBS (to-be-announced mortgage-backed securities) and U.S. Agencies continue to be strong contributors to TradeWeb's Rates business, with volumes exceeding $5.6 trillion in the quarter. The biggest growth came from the new swaps markets, as well as robust Gilt and ILB trading on TradeWeb in Europe.
- Interest rate swaps trading grew impressively. Euro swaps (which include overnight index swaps) grew 227% in the second quarter compared to the prior year, while the U.S. dollar market, launched in September 2005, has seen strong gains in each of the three quarters since. From Q1 2006 to Q2 2006, U.S. dollar swap trading grew 45%
- Global trading of inflation-linked bonds (ILBs) rose 32% in the second quarter, compared to Q2 2005
- Gilt trading continued to perform strongly, with volumes up 56% compared to the prior year