Tradeweb Markets, the online fixed-income trading platform, today said that Citadel Securities, the broker-dealer arm of Ken Griffin’s firm, has become a liquidity provider for its institutional U.S. Treasury marketplace as the trading venue expands its presence in the $14 trillion US government debt market.
Citadel Securities is one of the largest market makers in US stocks and options. Since 2015, when it decided to break into this segment of the market, which is traditionally open only to dealers and their customers, Citadel Securities has been active trading Treasuries on the platform run by its Bloomberg News parent.
Tradeweb has been the preferred venue for other major institutional investors. In addition, the company’s expansion into U.S. Treasuries complements its existing market making efforts on Tradeweb in interest rate swaps, credit default swap indices, and U.S. ETFs.
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Citadel’s accession to Tradeweb propels the institutional venue, which is owned by Thomson Reuters, into a position of dominance. While Reuters sells competing data terminals, Tradeweb’s business model is more focused on charging bank dealers and collecting trading fees.
Treasury Market Lures Citadel
With more than 1,000 institutional clients and over 25 leading liquidity providers, trading volume for the TradeWeb Treasury product continues to surge with total turnover exceeding $6.5 trillion since it began in 1998. Tradeweb says growing customer acceptance and rising market share boosted its U.S. Treasury marketplace volumes to a combined average daily volume of more than $35 billion.
Paul Hamill, Global Head of Fixed Income, Currencies and Commodities at Citadel Securities, said: “Joining the Tradeweb Treasury platform is a natural strategic development for our business. We continue to expand our fixed income client franchise, most recently adding off-the-run Treasuries, and remain committed to providing our clients with excellent service and fully firm liquidity across the curve.”