Tradeweb and i shares collaborate

Tradeweb has launched an electronic hedging tool for European ETFs which makes it easier to source, price and trade the basket of underlying bonds needed to create or redeem shares in fixed income ETFs, with the aim of improving their efficiency and liquidity.

Tradeweb and i shares collaborate

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The tool supports trading on European government, corporate and covered bonds, among others and users can request prices from several liquidity providers simultaneously and trade multiple line items at once.

The firm worked closely with BlackRock iShares, which had identified a need for an electronic trading solution which streamlines the trade process.

Leland Clemons, head of capital markets EMEA at iShares, said: “We’ve experienced a significant increase in demand for fixed income ETFs over the past few years and with this has come the need for more efficient ways to price and source bond baskets.

Collaboration with Tradeweb brings to the ETF market the combined benefits of dealer expertise in pricing these securities and the operational ease of an electronic platform. This tool will help to increase efficiency and liquidity for fixed income ETFs across Europe in support of the continued market growth.”

Eariler in the month iShares unveiled Europe’s first ETF with an international security structure, aimed at easing cross-border ETF processing and lowering transaction costs for investors.

 

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