Thomson TradeWeb, a unit of The Thomson Corporation (NYSE: TOC; TSX: TOC), today announced that TradeWeb, the leading Fixed Income and Derivatives online marketplace, achieved record total volumes of $42.8 trillion in 2005.
This represented a 63% increase over the previous year. The growth in trading was broadly distributed across TradeWeb's 13 global marketplaces. Of note, TBA-MBS (to be announced mortgage-backed securities) trading volume rose 74% to a record $15.2 trillion for the year. In the fourth quarter alone, $12.4 trillion in notional volume was executed over TradeWeb, a daily average of over $200 billion. In addition to the record volumes, TradeWeb welcomed 45 new Fixed Income trading desks, raising the total number that users can now access over the network to 192.
Among many milestones were the launches of U.S. Dollar and Euro Interest- Rate Swaps, U.S. Repo (tri-party repurchase agreements) and Global Credit Default Swap (CDS) Index marketplaces. Critical to the success of TradeWeb's Swaps and CDS launches were powerful trade processing capabilities that directly addressed a proven derivatives industry need. TradeWeb Repo is the first to offer commingled dealer electronic execution and trade processing capability to U.S. clients.
"We are delighted with TradeWeb's performance in 2005 and thank our clients and dealers for their continued support, which made this record year possible. As the world's leading online marketplace for fixed income, we will work hard to provide even better value for our clients in 2006," said Jim Toffey, Chief Executive Officer of Thomson TradeWeb.
"2005 was a strong year for TradeWeb, not just for the impressive volumes traded on our platform, but also because of the innovation we delivered to the market with the launch of new products - particularly in the derivatives space. Our European business continues to flourish as we add more clients to an already formidable customer base and we look forward to growing our product offerings and our client base as we continue geographic expansion in 2006," said Lee Olesky, President of Thomson TradeWeb.
Unparalleled Growth Across TradeWeb's Markets
Highlights of the year included:
- A breakthrough year for TradeWeb Corporates - five new dealers join, increasing the total liquidity pool to 15 top trading desks
- Total number of trades increased 183% in the 2nd half from the 1st half of the year
- Transaction volume grew 154% in the second half of the year
CP/Agency Discount Notes
- Total CP and ADN trade volume increased to $9.4 trillion in 2005, a 41%increase over the previous year
- Over 40% of CP volume came from trades of $100 million or more
- ADN volume increased by 59%
European Government Bonds
- Trading volume increased 10% from the previous year, as the number of clients grew impressively - nearly 500 institutions traded European Government bonds, an 18% increase from the previous year
- More than a third of the business was represented by trades of $50
- million or more, affirming TradeWeb's role as the institutional marketplace of choice
Euro Interest Rate Swaps
- A strong start in the first few months of institutional derivatives trading in Europe - Euro Interest Rate Swap volume rose 63% in Q4 2005, compared to the prior quarter
- 77% of business came from trades of Euro100 million or greater
Other European Products
- Trading volume continued to increase across TradeWeb's European products - Pfandbriefe/Covered bonds experienced significant growth of 35% in 2005
- European Commercial Paper volume increased to Euro203 billion, a 27% gain from the previous year
- Trade volume rose 74% from the previous year, to $15.2 trillion, firmly establishing TradeWeb as the central marketplace for TBA-MBS trading - the successful introduction of Butterfly trading and Reference REMICS
- Three new dealers joined TBA-MBS, bringing the total liquidity pool to 19 top trading desks
- A $288 billion trading day, setting a TradeWeb record for all markets
- TradeWeb trade volume increased by more than 14% compared to the previous year, driven principally by growth in large transactions and increased market adoption of electronic trading for Treasury Butterflies (three-security trades) - agency inventory volume increased 73% in Q4 2005, compared to the previous quarter
- Global Treasury trading volume reached $9.98 trillion
- 60% of Treasury trading volume represented trades of $50 million or greater
- Straight-through trade processing has become an increasingly important aspect of the market - over 6,500 users on the TradeWeb network are using TradeXpress service
- 1,187 new users added to AccountNet, a 42% increase over 2004
- AccountNet database includes 17,224 sub-accounts, a 40% increase over 2004