Cross/Multi asset

Citi takes stake in OTC trading platform

Investment bank Citi has bought a minority stake in Tradeweb, a multi-asset-class, over-the-counter (OTC) online marketplace owned by The Thomson Corporation. The size of the stake and the price paid were not disclosed. The move takes the number of investment banks backing Tradeweb to 10.

Tradeweb says Citi is an active participant in 12 of Tradeweb’s online marketplaces. As part of the agreement, Citi will become a liquidity provider in a number of new Tradeweb markets, including interest rate swaps.

Citi is currently a liquidity provider for US treasuries, TBA-mortgage-backed securities, US agencies, European government bonds, US and Euro-commercial paper, agency discount notes, US corporates, European credit, convertible bonds, covered bonds and supranationals.

“Citi’s reputation as one of the world’s great trading firms speaks for itself,” said Jim Toffey, CEO of Tradeweb, in a statement. “The liquidity they will bring to a number of new Tradeweb markets will be extremely beneficial to our clients.”

Including Citi, Tradeweb is now backed by 10 large investment banks. The others are: Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS.

“Citi’s investment furthers strengthens the commitment of the sell-side to Tradeweb. All 10 dealers are resolved to drive the growth of electronic trading through Tradeweb,” said Vic Simone, head of principal strategic investments for Goldman Sachs and chairman of Tradeweb.