Tradeweb announced the addition of Australian government bonds to its suite of dealer-to-customer government bond marketplaces.
The new market provides buy-side investors, such as asset managers and central banks, with the ability to trade a broad range of government securities on a single venue. More than 60 institutions have already executed Australian dollar trades on the platform.
Tradeweb has been at the forefront of electronic trading since 1998, and provides 2,000 institutional investors with access to more than 20 fixed income and derivatives marketplaces.
Credit Suisse, Deutsche Bank, J.P. Morgan, RBS, UBS and Westpac are currently providing
liquidity for the market, which is open in both Asian and London hours. A number of other domestic and international market makers, including Citigroup and ANZ, are in the process of joining the Australian government bond marketplace.
"The platform is well supported by dealers, who are providing us with good liquidity and high response rates to our requests for quotes," said Daisuke Niki of Daiwa Asset Management in Tokyo. "We also benefit by being able to see where the market levels are and can compare quotes on one screen. We can get our Australian dollar business done more efficiently."
"We introduced this new market to meet demand from our clients, and we expect to add to levels of transparency and increase the efficiency of the Australian dollar market," said Chris Collett, head of European and Australian government bonds at Tradeweb. "Our global client network positions us well to help meet these objectives, as a considerable portion of the secondary market in Australian government bonds is traded by non-domestic institutional investors."
The marketplace comprises Australian government bonds, bills, and semi-government bonds denominated in Australian dollars. Institutional investors can view streaming levels from individual dealers and for single bonds, or put up to five dealers into competition using a request-for-quote (RFQ) auction. The marketplace also supports list trading, which allows buy-side investors to request prices for up to 30 bonds at a time.