OTC Trading Platform of the Year: Tradeweb

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The uproar caused by Covid-19 has shown the value of the market infrastructure provided by Tradeweb. The company has helped its customers seamlessly adjust their workflow and remote controls, as many of their employees have had to work from home during the pandemic. The combination of comprehensive real-time data, innovative features in e-commerce and digital processing of these transactions resulted in Tradeweb being awarded this year’s Best OTC trading platform award.

Tradeweb has clearly benefited from the boom in e-commerce in recent years – a trend that has become even more pronounced with the Covid-19 crisis, which has forced traders to stay away from the office.

“[The pandemic] acted as a catalyst, but the digitalization trend [has been] slower to establish itself in Asia… than in Europe or we. This required the evolution to new practices of working environments away from the office, home or elsewhere, which necessitated e-commerce, ”says Li Renn Tsai, Tradeweb’s product and sales manager for the Asia in Singapore.

Our track record has shown that we have been successful in implementing, adapting and strengthening our platform and network to any new regulatory regime and for all stakeholders

Li Renn Tsai, Tradeweb

As a result, Tradeweb achieved record trading volumes in its global markets in the first quarter of this year, averaging over $ 1 trillion per day and $ 65 trillion in total notional volumes.

While this increase in trading may, to a large extent, have been due to sudden market events and resulting customer needs, Tradeweb has also been able to demonstrate its commitment to its customers. As the pandemic took hold, institutional investors in Asia were able to use its platform to meet their liquidity needs at a time when it mattered most.

Tradeweb’s distinctive philosophy of offering multiple asset classes and trading mechanisms has also paid off. The ability to trade derivatives, bonds, and stocks in one place, while using similar tools and processes, has helped clients remove unnecessary complexity from their workflows. Innovations within its AiEX automated execution platform and portfolio trading have also helped give Tradeweb the edge over its peers.

Heterogeneity

While Asia is one of the fastest growing regions in the world, it is also very diverse and fragmented, which comes with its share of challenges. This fragmentation extends to different regulatory requirements, which can be onerous compared to the ease of doing business in jurisdictions with a consistent set of rules, such as the we or the European Union.

“We have frequent discussions with local regulators, and part of the discussion [to shape policy] is how to deploy the technology to help investors adjust to the new rules. Unlike Europe, where different financial centers compete against each other within a main regulatory framework, Asia does not enjoy the same cohesion, but has made tangible efforts to reduce fragmentation, especially in recent years ” , explains Andrea Sbalchiero, product manager of interest rate swaps at Tradeweb. for Asia.

Tsai emphasizes how crucial it is, especially this year, that all Tradeweb offices and teams offer clients the same underlying technology and protocols, in order to provide seamless service in times of crisis, such as with the pandemic.

Tradeweb entered the Asian market in 2005, when it opened its Tokyo office, primarily to facilitate the electronic fulfillment of global products to clients in the region. Once she had a better understanding of her Asian customer base, she began to offer more market specific products and solutions that further complied with global and regional legal and regulatory requirements. Today, it is also present in Hong Kong, Singapore and Shanghai.

“Our track record has shown that we have been successful in implementing, adapting and strengthening our platform and network for any new regulatory regime and for all stakeholders,” Tsai said.

Electronic commerce and the future

Given this regional fragmentation, Tsai maintains that e-commerce is crucial in bringing Asia and the world closer.

“Elsewhere in Asia, the [adoption of e-trading] is getting there, but has been quite slow. Yet asset management is trying to become more efficient, and automation can help, when you look at getting more flows faster with the same number of traders, ”explains Tsai.

[Tradeweb] are doing great, and whenever I need support they are there for me. The platform matches my needs

Philip Wong, Shanghai Pudong Development Bank

The net result appears to be that Tradeweb customers are satisfied. The company’s derivatives market has steadily strengthened, constantly adding new currencies and new tools. Emerging market interest rate swaps have been a big area of ​​interest, and Tradeweb has seen higher volumes and growing demand for new liquidity flows and diversification from clients.

China and its bond market are also an area of ​​significant opportunity for Tradeweb, especially when it comes to real money accounts. The company believes that by digitizing the execution experience of Chinese onshore bond traders, it can further stimulate the influx of foreign investors into the market. This is why it has partnered with the China Foreign Exchange Trade System (CFET) – which is part of the Central Bank of China – to provide fully electronic access to Bond Connect and the Chinese interbank bond market (CIBM) Direct channels to the north.

“We mainly use Tradeweb to execute CNY bonds for Bond Connect transactions, ”said Philip Wong, Ficc Director of Shanghai Pudong Development Bank in Hong Kong.

“[Tradeweb] are doing great, and whenever I need support they are there for me. The platform matches my needs.


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