02.03.2016

Tradeweb Launches U.S.-Listed ETF Platform

02.03.2016

Electronic fixed-income trading-platform operator Tradeweb has added support for over-the-counter trading of U.S.-listed exchange-traded funds.

The new functionality complements Tradeweb’s 2012 launch of European-listed ETF trading and was a customer-driven decision, noted Adam Gould, head of U.S. equities derivatives at Tradeweb. “A lot of different types of asset managers are using them.”

Tradeweb introduced the new functionality via a soft launch a few months ago, and has since taken the platform into full production with 11 liquidity providers.

Adam Gould, Tradeweb

Adam Gould, Tradeweb

Platform users can request quotes from all liquidity providers for comparison with the U.S. equities markets National Best Bid and Offer (NBBO).

The Tradeweb platform stores all trade-related data in perpetuity. Gould explained that clients can access a comprehensive history of any transaction made on the platform, including the ETF price on the exchange, the multiple liquidity providers that offered quotes, and where the ETF eventually traded.

Since its launch, the average trade size for US-listed ETFs on the platform has been 90,000 shares, according to Gould.

“We have trades that are smaller and ones that are substantially larger,” Gould told Markets Media. “It’s driven by how liquid the ETF is on the screen, how easy it is to hedge the underlying benchmark index and how much it trades in a given day.”

Although Tradeweb’s historical clients have been fixed-income money managers, only slightly over half of the platform’s transaction have been fixed-income ETFs while the rest of the trades have been in equities- and commodities-based ETFs.

Tradeweb plans to target the new functionality to a mix of European customers who want to trade US-listed ETFs, Tradeweb’s historic long-only asset managers, hedge funds, registered investment advisors, and ETF funds of funds.

Featured image via Comugnero Silvana/Dollar Photo Club

Related articles

  1. Assessing Bond Liquidity
    Daily Email Feature

    Low Touch, High Liquidity

    Janus Henderson traders use a broad spectrum of electronic tools to optimize the search for liquidity.

  2. Easy Money Tamps Down Volatility

    Increased volatility drives the buy side to take a closer look at how they are trading.

  3. Flow to electronic trading platforms increased during the first half of 2022.

  4. High-Touch Sales Traders Go Electronic

    ADV was an average $1.1 trillion for the quarter, up 14% form the prior-year period.

  5. The electronic fixed-income trading platform said it had a record number of active clients.