Electronic ETF, fixed income and derivatives market place provider Tradeweb Markets has that seen more than USD12 billion notional volume traded year-to-date on its electronic request for quote (RFQ) platform for US ETFs since launch in the first quarter of this year.
The firm writes that now with 18 market makers trading with more than 135 clients, the platform is demonstrating valuable access to institutional-sized liquidity with average trade size exceeding 135,000 shares in the third quarter.
“The remarkable growth on our platform continues to demonstrate how our streamlined workflow puts market makers in competition to achieve better pricing and access to ETF liquidity," says Lee Olesky (pictured), CEO of Tradeweb. "Market participants demand more flexible and effective solutions to trade ETFs in ways that suit the increasing sophistication of their investing strategies. Tradeweb is helping unlock those opportunities with RFQ trading.”
The growth of the Tradeweb US ETF platform has accelerated dramatically during record investment into ETFs. Over the last quarter alone, trading volume more than doubled in the third quarter, against the second.
The firm writes that Tradeweb and its growing network of ETF clients have raised a new standard for execution of block and NAV trades, and for securities that appear relatively less liquid on exchange.
From aggregated pre-trade transparency and National Best Bid and Offer (NBBO) pricing, to electronic audit trails for compliance and best execution reports, the platform supports the entire trade lifecycle with automated workflows.
“Tradeweb’s introduction of an RFQ-style ETF market offers us transparent and competitive price discovery, with a streamlined workflow for trade processing," says Mark MacQueen, Co-Founder of Sage Advisory. “And as the ETF market continues to grow, gaining access to liquidity that offers size, quality pricing, and protection against information leakage is ever more valuable to us.”
The Tradeweb US-listed ETF platform complements its marketplace for European ETFs, which is the leader in D2C OTC electronic ETF trading in Europe. Since launching in 2012, more than EUR290 billion in notional ETF volume has traded on the European platform, and average daily trading volume now exceeds EUR500 million. Clients have successfully executed single block ETF trades in excess of EUR300 million on Tradeweb, with more than 90 per cent of trades executed within the best bid-offer prices from exchanges in the first half of 2016.