Bringing you live news and features since 2006 

Tradeweb reports growing demand for RFQ execution


Tradeweb, the electronic trading platform, reports that 2017 saw record inflows into ETFs of over USD400 billion through November, reflecting the institutional investor’s love affair with ETFs.

The firm writes that as they ramp up their investment in the asset class, institutions are also changing their approach to ETF trading, increasing their use of over–the-counter platforms that support RFQ execution.

“Using RFQ, investors gain better pricing by putting liquidity providers in competition in real-time, while also improving workflow efficiency. This type of trading also provides investors with immediacy in execution, and the ability to buy or sell an ETF as soon as liquidity providers submit their pricing.

“Tradeweb has been central to changing the way investors transact ETFs since launching its platform for RFQ ETF trading in Europe in October 2012 and in the US in 2016. Clients on the platform have access to enhanced pre-trade transparency, efficient execution and electronic audit trails for compliance and best execution through an automated and compliant workflow. As of November 30, 2017, more than EUR484 billion in European-listed ETFs and over USD74 billion in US-listed ETFs have traded on its platforms.”

The firm writes that activity on the global Tradeweb institutional ETF platform topped 118 per cent in compound annual growth, exceeding USD900 million in average daily trading volume each of the last four quarters.

According to ETFGI, fixed income ETFs saw net inflows of approximately USD130 billion through the end of October 2017. This brings the total invested in fixed income ETF assets to USD800 billion globally. On Tradeweb, approximately 30 per cent-40 per cent of trading activity takes place in fixed income ETFs, while the overall market for the asset class falls between 15 per cent-20 per cent.

The firm writes: “As investment in ETFs continues to grow and become more attractive to institutional investors, RFQ trading has helped support the adoption of these products with better access to liquidity, more competitive and transparent pricing, and an optimised workflow.”

Latest News

ETP provider GraniteShares has announced it has surpassed USD5 billion in assets under management (AUM), reaching USD5.199 billion...
News came last night from the US that the SEC has approved CBOE’s proposal to list and trade VanEck’s spot..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15 per cent increase in net..
European white label ETF platform, HANetf, has announced its total assets under management (AUM) has now exceeded USD4.31 billion...

Related Articles

Timothy Rotolo, Range Funds
In 2023, Timothy Rotolo launched his business, Range Fund Holdings, the parent company for Range Indices and Range ETFs, followed...
Dan Miller, IQ-EQ
With just over a week to go till T+1 settlement begins in North America, Canada and Mexico, time is of...
Emily Spurling, Nasdaq
Last October’s ETF Express US Awards 2023 found Nasdaq winning Best Index Provider – ESG ETFs and Best Index Provider...
Vinit Srivistava, MerQube
Index provider, MerQube, launched in 2019, with the aim of providing a “technology-driven answer to the most complex, rules-based investment...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by