Thomson TradeWeb, part of The Thomson Corporation (NYSE: TOC; TSX: TOC), a leading global provider of integrated information solutions to professional customers, announced today that TradeWeb's 2nd quarter volume for its 12 online marketplaces surpassed $10.3 trillion - up a remarkable 63% from the same period last year.
This growth spanned multiple marketplaces and was principally driven by customers executing larger-sized trades online. Approximately 62% of TradeWeb's 2nd quarter volume came from trades of greater than $100 million in size, up from 50% for the same period last year.
Jim Toffey, CEO of Thomson TradeWeb said, "Our results clearly demonstrate that institutional investors and dealers around the globe have become accustomed to executing very large trades electronically. We expect this trend to continue as market professionals become more aware of the speed, efficiency, and superior price discovery that TradeWeb provides for trades of any size. Electronic trading has become a natural evolutionary step in the development of efficient markets."
Lee Olesky, President of Thomson TradeWeb added, "While TradeWeb continues to build significant momentum in its most mature liquid markets, such as European Governments, it is also leading the way in developing online marketplaces for derivatives and expanding its franchise internationally."
TradeWeb's Online Marketplace Highlights
TBA-MBS: Volume reached nearly $4.0 trillion for the 2nd quarter of 2005, a 95% increase over the same period last year. Over 80% of TBA-MBS volume came from trades of $100mm or greater.
Treasuries/Agencies: Over $2.8 trillion in Treasury & Agency volume was executed over TradeWeb during the 2nd quarter of 2005, a 30% increase from last year.
European Governments:Globally, nearly €450 billion in European Governments volume was traded over TradeWeb during the 2nd quarter of 2005, up 34% from the same period last year.
Money Markets: Online Commercial Paper volume increased to $1.7 trillion during the 2nd quarter of 2005, up 29% from the 2nd quarter of 2004. Agency Discount Notes volume reached nearly $550 billion for the quarter, up 52% from the same period last year. Also, during this past quarter, TradeWeb did a limited release of its new online trading for Tri-Party Repurchase Agreements and it accounted for nearly $700 billion of the 2nd quarter volume.
Corporate Bonds: The number of trades executed over TradeWeb Corporates increased by over 100% for the 2nd quarter of 2005 versus the 1st quarter of this year, while the number of trade inquiries rose 75%. TradeWeb's customers collectively experienced a 71% hit rate, the proportion of trade inquiries that result in a completed transaction, during the month of June.
Other European Markets: European Commercial Paper trading during the 2nd quarter exceeded $50 billion, up 25% from the same period last year. Pfandbriefe trading volume increased by more than 60% to reach $7 billion for the quarter.
Straight-through Processing:For the 2nd quarter, over 425,000 tickets totaling nearly $4.0 trillion in notional volume were electronically processed and confirmed using TradeXpress, the leading straight-through processing network - a 43% increase over the same period last year.