Tradeweb Introduces Next Generation Spotting for U.S. Credit Trading01.27.2021
NEW YORK – January 27, 2021 – Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has launched Multi-Client Net Spotting, a new tool that significantly enhances how credit market participants access the U.S. Treasury market to hedge their risk.
Multi-Client Net Spotting represents the next generation of electronic Net Spotting, an innovation that Tradeweb first introduced in 2019. Electronic spotting links a firm’s trading in the institutional credit market to the U.S. Treasury marketplace all within the Tradeweb platform, replacing the cumbersome process of manually spotting spread trades with one that enables hundreds of billions of credit trading flow to be hedged electronically. The tool has grown quickly in popularity, with $818 billion submitted for spotting during 2020.
While Net Spotting allows clients to efficiently aggregate and net Treasury spots across transactions, and dealers to hedge without delays, Multi-Client Net Spotting improves on the process by netting hedging activity across all Tradeweb clients spotting at the same time.
Chris Bruner, Head of U.S. Credit at Tradeweb said: “In the past year clients around the world have shifted primarily to an all-virtual environment, and modernizing manual processes has become a core focus. Manually spotting trades can often cause a delay of several minutes, as well as create significant interest rate risk, affecting the all-in price of the corporate bond. Multi-Client Net Spotting allows for all Tradeweb clients, regardless of their size or trading strategy, to efficiently hedge and reap the benefits of our vast network.”
Spencer Lee, Partner and Head of Trading at Agilon Capital LLC, said: “Net Spotting functionality at Tradeweb has always been such a significant savings for our trading operation – both in time and real dollars. Now adding in the ability to net one’s directional risk with that of other users on the platform only increases the opportunity for more savings. It is really an easy choice to incorporate this new enhancement.”
Over the past year, Tradeweb’s credit platform has continued to see significant growth with average daily volume in credit trading globally at Tradeweb averaging $22.1bn. Last quarter, Tradeweb captured a record share of TRACE in U.S. High Grade and U.S. High Yield bonds, with fully electronic trading representing the majority of each. In December, Tradeweb facilitated 19.3% of U.S. High Grade market share and 6.9% of TRACE High Yield market share.
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