Source: Thomson Financial
Thomson TradeWeb, part of The Thomson Corporation (NYSE: TOC; TSX: TOC), a leading global provider of integrated information solutions to financial professionals, announced today that TradeWeb's 3rd quarter volume reached $11 trillion across its 13 online marketplaces.
This record volume was up 57% over the same period last year and was principally driven by a continued growth in large trades being executed electronically along with more TBA-MBS volume moving online. Approximately 64% of TradeWeb's 3rd quarter volume came from trades of greater than $100 million in size, up from 52% for the same period the previous year. TradeWeb's record results have also been positively impacted by incremental trading volume coming from its new online markets, including Tri-party Repurchase Agreements and Euro and US dollar-denominated Interest Rate Swaps.
In late October, TradeWeb will be launching its new online market for credit default swap index products. It will provide efficient trade execution and processing for new CDS trades, unwinds and assignments using ISDA's newly released Novation Protocol. It will also provide users with a real-time link with DTCC's Deriv/SERV for accurate and timely trade matching and position management. Ten leading CDS dealers have committed to providing liquidity over TradeWeb’s new CDS online marketplace.
Jim Toffey, CEO of Thomson TradeWeb commented, "TradeWeb continues to experience strong growth by providing institutional investors and dealers efficient online markets that enable trade execution and processing for large, small, simple or complex transactions. We also take pride in our ability to bring innovation to the fixed-income markets. For example, with our recent launch of online markets for OTC derivatives, we have built a world-class industry solution that helps buy-side and sell-side firms better manage the complex world of interest rate swap and credit default swap trading and processing."
Lee Olesky, President of Thomson TradeWeb added, "In many respects, TradeWeb is at the beginning of a new phase in its business with expansion into credit markets, OTC derivatives and new geographical regions. Our latest European offering, Euro Interest Rate Swaps, is going from strength to strength and, coupled with the recent addition of US dollar Swaps, has proved a very welcome addition to the platform with our European customers."
TradeWeb's Online Marketplace Highlights
TBA-MBS: Volume exceeded $3.7 trillion for the 3rd quarter, a 60% increase over the same period last year. In the 3rd quarter, 81% of TBA-MBS volume came from trades of $100mm or greater.
Treasuries/Agencies: Over $2.4 trillion in Treasury & Agency volume was executed over TradeWeb during the 3rd quarter of 2005 as the number of customers trading increased over the same period the previous year.
European Governments: Globally, €390 billion in European Governments volume was traded over TradeWeb during the 3rd quarter, with the number of companies trading up 14% over the same period last year.
Money Markets: Online Commercial Paper volume increased to $1.9 trillion during the 3rd quarter, up 36% from the same period last year. Agency Discount Notes volume exceeded $680 billion for the quarter, up 51% from the third quarter of 2004. Volume for the recently launched Tri-Party Repurchase Agreements platform surpassed $1.7 trillion for the quarter as this new online marketplace continues to grow in its beta phase.
Corporate Bonds: Volume for TradeWeb's Corporate Bond platform increased 177% for the 3rd quarter compared to the previous quarter. The hit rate, the proportion of trade inquiries that result in a completed transaction, rose to 73%. More customers used the Corporates platform in the 3rd quarter, with the number of customers trading up 27% over the previous quarter.
Other European Markets: Third quarter European Commercial Paper volume exceeded $58 billion, up 41% from the same period last year. Volume for TradeWeb's recently launched Euro Interest Rate Swaps was up 68% in the 3rd quarter over the previous quarter.
Straight-through Processing: Over 410,000 tickets totaling nearly $4.7 trillion in notional volume were electronically processed and confirmed using TradeXpress, the leading straight-through processing network. Allocation volume increased 90% over the same period last year.