Buy-side bond data demand drives uptake in Tradeweb's axes

Value of ‘high-quality pre-trade information’ sees Tradeweb’s trade volumes in Europe via the use of axes significantly increase.

Tradeweb has reported a 131% uptake in use of its axes functionality across Europe since the beginning of the year, as the buy-side shifts focus to ‘high-quality pre-trade information’.

Diminishing bond liquidity has led the buy-side to shift focus to high-quality pre-trade information, to make informed decisions when obtaining liquidity and executing trades, the firm claims.

Tradeweb’s axes are used to “highlight the market makers who have indicated they have a specific interest to trade a particular way in an instrument rather than a neutral market bid-offer stream,” global head of business development, Simon Maisey told The Trade.

He added: “This allows buy-side traders to make better-informed decisions when selecting dealers for their request-for-quote (RFQ) auction.

“The Tradeweb axe functionality combines live, real-time axe information with the ability to execute, resulting into a more seamless trading experience.”

Approximately €2 billion is traded daily on Tradeweb’s dealers axes for European government bonds.

Tradeweb recently announced it has upgraded its RFQ process, which allows traders to send and receive quotes for European credit bonds.

FlexRFQ allows traders to send requests to up to six dealers at a time, replacing those who do not respond with new dealers while the request is live.