Tradeweb Markets’ newly launched U.S. corporate bond trading platform will initially support trading of U.S. denominated investment grade corporate bonds, providing pre-trade transparency and request-for-quote (RFQ) and list trading protocols for both round- and odd-lot trades. More than 60 investors and 30 liquidity providers have joined the Tradeweb platform, the company said.

“Liquidity, transparency, and efficiency are the foundation of an effective marketplace,” Cactus Raazi, head of North American credit at Tradeweb, told Markets Media. “Investors who feel restricted in their trading across any of these areas will seek out different solutions to gain an advantage.”

Tradeweb delivers pre-trade price transparency in U.S. investment grade credit, “allowing investors to view thousands of real, streaming prices – true liquidity – across the market so they can trade those bonds quickly and easily with a range of different trading protocols,” Raazi said.

Straight-through-processing of clients’ trading activity greatly enhances operational efficiency, including with third-party order management systems and other technology providers. The Tradeweb Corporate Bond Marketplace “is a real step forward for market participants seeking greater transparency and efficiency with significant cost savings,” said Raazi.

“The corporate bond market has reached an inflection point where investor demand and market conditions are driving the need for greater price transparency and connectivity,” Billy Hult, president of Tradeweb, said in a release.

There is still a reasonable amount of liquidity in the corporate bond market, but in an environment where investors are seeking greater price transparency and certainty they can get their business done, they are looking toward new electronic solutions.

“The industry has reached a critical mass, and we believe there’s a significant opportunity for electronic market share to increase dramatically from the 15% of volume in investment grade credit e-trading today,” Raazi said.

Market participants have shifted significant attention toward new protocols, standardizing issuance, and large changes in market structure and the roles of investors. As a result, market operators like Tradeweb are working to provide innovative solutions that enhance investors’ ability to see real prices and trade corporate bonds more effectively. “The adoption of new protocols like our streaming prices will take time, but today’s environment is driving the first steps toward a more efficient credit marketplace in the U.S.,” said Raazi.

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