Tradeweb Presents Calculation Service for iNAV

Tradeweb Markets, a NASDAQ-listed operator of electronic marketplaces for money markets, has launched a new market data service allowing the calculation of Indicative Net Asset Values (iNAVs) for exchange-traded funds (ETFs) in real-time.

Tradeweb Launches iNAVs

According to the press release on Wednesday, BlackRock already became the first issuer of the ETF using iNAVs. Its iShares ETF in the Old Continent started to use the market data service on 6 February 2023.

iNAVs are crucial aspects of ETFs that provide insights into their current value based on the real-time market price of the underlying components. These calculations are carried out every 15 seconds during market hours, ensuring the availability of up-to-date information to investors. By enabling the assessment of ETF pricing fairness, iNAVs contribute to market transparency and empower investors to make informed investment decisions.

The rising popularity of ETFs has led to a growing demand for iNAV calculation services, especially from institutional clients and ETF issuers. Tradeweb is well-positioned to cater for this demand, providing investors with an efficient means of evaluating their positions, optimizing trades, and improving Transaction Cost Analysis (TCA).

“We are excited to launch a comprehensive and reliable iNAV calculation service for ETFs, using real-time prices from our leading trading platform,” Enrico Bruni, the Head of Europe and Asia Business at Tradeweb, said.

“Our breadth of product coverage, depth of price contributions, and timeliness of quotes position Tradeweb iNAVs to become the market’s preferred solution for intraday ETF evaluation, which could ultimately boost trading confidence in the ETF market.”

According to Tradeweb, total volumes of its European institutional ETFs increased by 32% year-on-year. The trend was mainly driven by fixed-income ETFs, despite the problematic debt market conditions.

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Higher Income and ADV for Tradeweb in 2022

Recently, Tradeweb published its financial report for the fourth quarter and the entire year of 2022. The company reported $293 million in revenue for Q4, increasing 5.8% compared to the same period a year earlier. The quarterly net income came in at $99 million and was boosted by an increase in interest income and lower tax expanse related to changes in the company’s deferred tax assets. Adjusted EBITDA also showed higher results and stood at $154.7 million compared to $140.1 million in Q4 2021.

Additionally, the NASDAQ-listed operator of electronic marketplaces published its yearly average daily volume (ADV) for 2022 a month earlier. The ADV reached $1.1 trillion, representing a 9.87% year-over-year jump.

Our average daily trading volume for December 2022 was $1.02tn, which is up 11.6% year-over-year. Moreover, we reported strong volumes for Q4 and the full-year of 2022.

Read more here: https://t.co/3nZLPMfoK1 pic.twitter.com/GDizk0WMaA

— Tradeweb (@Tradeweb) January 5, 2023

However, details shared by Tradeweb showed that its total trading volume and ADV for December 2022 declined on a monthly basis by -9% and -10%, to $21.2 trillion and $1.02 trillion, respectively.

At the beginning of the year, the company decided to appoint its long-time employee Billy Hult as the CEO. Hult replaces Lee Olesky, who retired on 31 December 2022. Currently, he serves as the Non-Executive Chairman of the Board.