Tradeweb has announced that ETF trading volumes across its global institutional ETF marketplaces have grown at a compound annual growth rate of 120% since inception in October 2012.
Adriano Pace, managing director for equity derivatives at Tradeweb.
Over this period, more than $660 billion of ETFs have been traded on across its marketplaces.
Tradeweb credits the impressive growth to its electronic request for quote (RFQ) pricing mechanism which now provides access to competitive pricing from 39 liquidity providers worldwide, helping to enhance transparency and efficiency for investors.
The platform puts up to five liquidity providers in competition for both block and net asset value trades. It also provides real-time axes from market makers that highlight prices or indications of interest to buy or sell particular securities, allowing investors to leverage the information when requesting quotes.
Market participants benefit from aggregated pre-trade transparency, efficient execution, and electronic audit trails for compliance and best execution – all in an automated workflow.
“The sustained growth of our global ETF offering demonstrates the real value RFQ trading provides institutional investors in accessing liquidity with competitive pricing,” said Adriano Pace, managing director at Tradeweb. “Tradeweb has firmly established itself as a leader in electronic OTC trading for ETFs, leveraging technology in new and innovative ways to help unlock ETF liquidity for market participants.”
“We set out to deliver an alternative method for accessing institutional ETF liquidity with greater efficiency and transparency, providing clients with immediacy in filling their entire order via RFQ trading,” added Adam Gould, managing director at Tradeweb. “By delivering a solution that helps protect institutional investors against information leakage, with quality pricing for larger size trades, we’re excited to see our platform keep growing.”
Activity on Tradeweb’s global ETF platform peaked in Q2 2017 with over 25 million ETF shares traded daily on average. While activity has dipped slightly since then, more than 20 million shares in average daily trading has been recorded for each of the last four quarters.
Source: Tradeweb.
Tradeweb offers RFQ trading for both US and European-listed ETFs. Since inception, more than €500 billion in European-listed ETFs and over $85 billion in US-listed ETFs have traded on Tradeweb. In Q4 2017, average daily trading volume of ETFs exceeded $980 million across the global platform.