FTSE Russell taps Tradeweb to enhance fixed income pricing and index trading products
“The Tradeweb FTSE closing prices will create a foundation across global fixed income markets for consistent end-of-day and intraday prices.”
Tradeweb Markets Inc., a global leader in electronic marketplaces for rates, credit, equities, and money markets, has announced a strategic partnership with FTSE Russell, an LSEG business and a pioneer in global index creation. The collaboration aims to revolutionize the fixed income ecosystem by offering next-generation pricing and index trading products.
The partnership comes at a critical juncture in the fixed income market, as the demand for transparent, robust, and reliable pricing mechanisms gains momentum.
FTSE Russell will administer fixed income closing prices as benchmarks, derived from trading activity on Tradeweb’s platform. This marks an expansion of the firms’ existing collaboration, which already includes benchmark pricing for UK Gilt and European Government bonds.
“A foundation across global fixed income markets for consistent end-of-day and intraday prices”
Lisa Schirf, Global Head of Data & Analytics at Tradeweb, emphasized the role of this collaboration in enhancing market electronification: “The Tradeweb FTSE closing prices will create a foundation across global fixed income markets for consistent end-of-day and intraday prices.”
Scott Harman, Head of Fixed Income Indices at FTSE Russell, shared the vision: “Our deeper collaboration with Tradeweb will enable us to bring greater tractability and tradability of our indices, fundamentally changing the Fixed Income ecosystem.”
In the coming months, the partnership will extend pricing coverage across multiple regions and fixed income asset classes. FTSE Russell is particularly interested in incorporating Tradeweb pricing into its Fixed Income indices, starting with the FTSE World Government Bond Index (WGBI).
FTSE Russell Fixed Income indices to include RFQ, AiEX, and Portfolio Trading
Additionally, the partnership aims to enhance trading functionality for FTSE Russell Fixed Income indices and customized baskets through advanced tools and protocols.
These tools include RFQ (request-for-quote), AiEX (Automated Intelligent Execution tool), and Portfolio Trading, designed to facilitate index rebalancing trades efficiently.
This alliance holds promise for both retail and institutional investors as the fixed income market undergoes rapid transformation. By coupling FTSE Russell’s expertise in index solutions with Tradeweb’s trading platform and data capabilities, the partnership aims to set a new industry standard in fixed income pricing and trading.