Tradeweb, a leading provider of online marketplaces, today announced the release of state-of-the-art technology for improving liquidity discovery in the global equity markets.
The new Smart IOI technology significantly reduces information leakage by targeting trading partners with more intelligently sourced client liquidity.
Indications of interest ("IOIs") are messages sent by sell-side traders to inform clients of their willingness to buy or sell blocks of specific equity securities.
Clients of the Tradeweb Routing Network ("TRN") can receive a Smart IOI through AutEx and through other industry channels, including Thomson Reuters and leading order management systems. AutEx is a leading electronic platform that enables buyers and sellers of block shares to communicate their intentions to trading partners. TRN is one of the world's leading FIX networks.
A Smart IOI routes indications to clients, based on client-approved trading information from TRN, and significantly increases the likelihood of buyers and sellers being matched without market disruption and thereby increasing the confidence with which traders can show their interest.
The Smart IOI initiative has active industry support from a growing group of dealers, institutional clients and technology service providers.
"The Smart IOI application provides clients with an intelligent way to target indications of interest with limited risk of market interruption," said Jim Fiesel, Managing Director and Head of Tradeweb's Equities business. "It's a straightforward concept, but the Smart IOI contains a sophisticated algorithm to ensure the best possible order matching."
"The Smart IOI is another example of how Tradeweb leverages technology to improve the efficiency of financial markets," said Lee Olesky, Chief Executive Officer of Tradeweb. "In this case, the industry challenge of information leakage is addressed with an innovative solution that benefits both buy-side and sell-side participants."
"This Tradeweb innovation takes IOI technology to a new level, bringing the financial community a new weapon in their order routing arsenaal. Thomson Reuters' global financial desktop franchise will benefit from this through our existing integration of Tradeweb's AutEx. It's much more than adding a data set; it's providing meaningful real-time market intelligence," said Stephen Wilson, Global Head of Exchange Traded Instruments at Thomson Reuters.
Financial market professionals using Thomson Reuters desktops can access Smart IOIs using the blotter application in Reuters Trading for Exchanges and the quote window within Thomson ONE. This provides additional block trade opportunities to hundreds of traders utilizing Thomson Reuters' vast global network.
"The integration of Smart IOIs provides our buy-side clients better access to and more control over the information they need to make informed trading decisions," said Scott DePetris, Global Head of Accounts at Portware, a major provider of execution management systems to large buy-side institutions, and the first EMS to implement AutEx's Smart IOIs into its client systems. "The combined solution offers Portware users the ability to receive the Smart IOIs in a differentiated manner, alerting the user of relevant liquidity."
"We are excited to be able to offer our broker customers additional coverage for their IOI's through Tradeweb's new Smart IOI service. This newly-integrated service utilizes Fidessa's flexible IOI list management toolset and allows Fidessa-connected brokers to leverage AutEx to intelligently route Smart IOIs to the buy-side community directly from their Fidessa platform," said Martin Hakker, EVP Marketing at Fidessa.