Tradeweb and FTSE Russell partner on fixed income products
25 October 2023 UK
Image: leungchopan/stock.adobe.com
Electronic marketplace operator Tradeweb Markets and FTSE Russell, an LSEG business, have partnered to develop a new range of fixed income index pricing and index trading products.
Through the initiative, FTSE Russell will expand its benchmark pricing provisions, covering a wider range of fixed income securities in addition to its current coverage of UK Gilt and European Government bonds.
Closing prices will incorporate trading activity from Tradeweb’s electronic platform, improving the accuracy of alignment with actual trading levels and intraday pricing will be improved. They can then be used as reference rates for a range of use cases, including trade-at-close transactions and derivatives contracts.
The organisations state that they will continue to collaborate on fixed income pricing sets over the coming months, broadening the coverage of fixed income pricing sets across asset classes and geographies. FTSE Russell plans to integrate Tradeweb pricing into its fixed income indices, beginning with its flagship index, the FTSE World Government Bond Index.
Tradeweb intends to further develop electronic trading functionality for FTSE Russell’s fixed income indices and customised baskets in order to help clients manage large, critical trades. This will include the use of various tools and protocols such as request-for-quote, automated intelligence execution and features to enhance index rebalancing trade operations.
Lisa Schirf, global head of data and analytics at Tradeweb, says: “Tradeweb’s collaboration with FTSE Russell will provide clients with verified benchmarks they can use as reliable closing prices for their end-of-day trading strategies and other purposes. The Tradeweb FTSE closing prices will create a foundation across global fixed income markets for consistent end-of-day and intraday prices and is another way we are investing in the electronification of the markets.”
Scott Harman, head of fixed income indices at FTSE Russell, comments: “With our suite of sophisticated fixed income indices and a growing need for innovative pricing solutions from our clients, our collaboration with Tradeweb will enable us to bring to market greater tractability and tradability of our indices.”
Through the initiative, FTSE Russell will expand its benchmark pricing provisions, covering a wider range of fixed income securities in addition to its current coverage of UK Gilt and European Government bonds.
Closing prices will incorporate trading activity from Tradeweb’s electronic platform, improving the accuracy of alignment with actual trading levels and intraday pricing will be improved. They can then be used as reference rates for a range of use cases, including trade-at-close transactions and derivatives contracts.
The organisations state that they will continue to collaborate on fixed income pricing sets over the coming months, broadening the coverage of fixed income pricing sets across asset classes and geographies. FTSE Russell plans to integrate Tradeweb pricing into its fixed income indices, beginning with its flagship index, the FTSE World Government Bond Index.
Tradeweb intends to further develop electronic trading functionality for FTSE Russell’s fixed income indices and customised baskets in order to help clients manage large, critical trades. This will include the use of various tools and protocols such as request-for-quote, automated intelligence execution and features to enhance index rebalancing trade operations.
Lisa Schirf, global head of data and analytics at Tradeweb, says: “Tradeweb’s collaboration with FTSE Russell will provide clients with verified benchmarks they can use as reliable closing prices for their end-of-day trading strategies and other purposes. The Tradeweb FTSE closing prices will create a foundation across global fixed income markets for consistent end-of-day and intraday prices and is another way we are investing in the electronification of the markets.”
Scott Harman, head of fixed income indices at FTSE Russell, comments: “With our suite of sophisticated fixed income indices and a growing need for innovative pricing solutions from our clients, our collaboration with Tradeweb will enable us to bring to market greater tractability and tradability of our indices.”
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