Tradeweb and FTSE Russel win gilt and T-bill reference pricing gig
11 October 2016 | 2345 views | 0
Tradeweb Markets, the leading global marketplace for electronic fixed income, derivatives and ETF trading, and FTSE Russell, the global index provider, today welcomed the decision by the UK Treasury naming Tradeweb and FTSE Russell as the joint future providers for end-of-day reference prices for Gilts and Treasury bills.
Tradeweb and FTSE Russell are working closely to collaborate to create the “Tradeweb FTSE Gilt Closing Prices” solution following the UK Debt Management Office (‘DMO’) announcement that it intended to withdraw from the provision of reference prices, and its decision to launch an independent review into successor arrangements.
“With a 13-year history in the Gilt market, we believe Tradeweb is ideally positioned to succeed the DMO as the single input data source of such pricing for the UK market,” said Enrico Bruni, managing director, head of Europe and Asia business at Tradeweb. “As the leading dealer-to-client trading platform for UK Gilts, we are confident that we are able to offer the market a compelling and high quality data set.”
As part of the proposal, Tradeweb and FTSE Russell will produce end-of-day gilt reference prices in a manner consistent with IOSCO principles. Tradeweb will calculate the reference prices based on input data from the Tradeweb dealer-to-client UK Gilt trading platform. FTSE Russell will operate as the administrator of the reference prices and will use these prices in the calculation of the FTSE Actuaries UK Gilts Index Series. It is expected that the transition to the Tradeweb FTSE Gilt Closing Prices will take place in Q1 2017.
Christopher Woods, Managing Director Governance, Risk and Compliance at FTSE Russell said: “FTSE Russell is firmly committed to promoting the highest possible governance standards and has a strong track record in delivering transparent benchmarks and reference data. We are delighted to be partnering with Tradeweb and will work closely with the DMO and market participants to deliver enhanced end-of-day reference pricing for Gilts and Treasury bills.”
“We look forward to working with the UK Debt Management Office (‘DMO’) and the market on a seamless transition and the continuous support of the Gilt and Treasury Bill market through this unique and valuable partnership with FTSE Russell” said Simon Maisey, managing director and global head of business development at Tradeweb.