Tradeweb Taps into US-ETF Growth With Trading Platform Launch

Tradeweb Markets, a global provider of fixed-income, derivatives, and exchange-traded-funds (ETF) marketplaces, has launched a new electronic over-the-counter (OTC) marketplace for US-listed ETFs, helping streamline Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term choices for users, according to a Tradeweb statement.

The launch comes amidst a period of heightened OTC trading, with ETFs already having shown strong growth over the past year, and now into the new year across a number of institutional venues. Tradeweb’s new OTC marketplace will also allow clients to trade via eleven Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term, affording several utilities for users.

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This includes direct access to all US and European-listed ETFs, as well as diverse fixed-income options. Moreover, clients will garner access to exchange pricing with National Best Bid and Offer (NBBO) and an automated workflow to third-party and proprietary systems.

In contrast to Europe, where the majority of ETF trading is OTC, bringing electronic request for quote (RFQ) trading to the US will also help allow investors to use this protocol for those larger or relatively illiquid ETF trades, whilst leveraging their relationships with market makers that makes them more competitive.

ETF assets have already managed to climb to an all time high of $2.2 trillion during the 2015 year, having already experienced an uptick in H2 2015, driven in large part by retail channels, as calculated by Broadridge’s Fund Distribution Intelligence.

According to Enrico Bruni, Managing Director and Head of Europe and Asia Business at Tradeweb Markets, in a recent statement on the launch: "We have introduced a very efficient way of trading U.S.-listed ETFs electronically, leveraging our technology and network to support a competitive and liquid over-the-counter marketplace."

"The Tradeweb ETF platform offers a new channel for liquidity and enhances our suite of execution capabilities. The platform represents a novel approach to improving price discovery as well as an innovative way to execute larger-size trades, while reducing the risk of materially impacting pricing," added Chris Hempstead, Head of ETF sales for KCG, in an accompanying statement.