Bond Connect drives record Chinese trading volumes at Tradeweb

Tradeweb set several new average daily trading records in June this year, with Chinese bond trading reaching $1.1 billion.

Chinese bond trading volumes reached record highs in June at Tradeweb, after it became the first firm to provide offshore investors with access to the Bond Connect trading link.

As the Bond Connect initiative celebrates its second anniversary, Tradeweb’s average daily trading volume in Chinese bonds in June reached a record $1.1 billion, representing a 406% increase since the first month of trading on Bond Connect in July 2017.

Tradeweb said its focus on providing streamlined access to Mainland China’s $9 trillion interbank bond market is now paying off, and some of the key gains in volume traded on its platform have been driven by an expansion of its trading features. 

“The launch of automated trading via our AiEX tool, and the facilitation of pre- and post-trade allocations on the Tradeweb Bond Connect platform have significantly enhanced clients’ workflow,” Tradeweb said in a statement. “There are now 1,038 registered investors on Bond Connect, all of who will have access to new functionality launched in early July, including the introduction of pricing streams and the launch of the iDeal Messaging tool.”

Tradeweb became the first trading venue to provide access to Bond Connect, after connecting to the China Foreign Exchange Trade System (CFTES) to become the main trading interface for offshore investors using the trading link. Institutional investors are able to trade directly with Mainland Chinese liquidity providers in the CFETS market using Tradeweb’s electronic trading platform.

Across Tradeweb’s business, overall average daily trading volume also saw a new record in June of $859.2 billion, up 45.8% year-on-year, with highs across rates and credit trading in US and European government bonds, mortgages, rates derivatives, US high-grade credit, as well as Chinese bonds. 

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