Tradeweb expands electronic portfolio trading capabilities

Among the new functionalities are the additions of trade on spread at market close and the increase in the line item capacity.

Tradeweb Markets has launched new functionalities for its electronic portfolio trading tool as it looks to increase flexibility and efficiency for institutional clients.

Among the new functionalities is the addition of trade on spread at market close, which Tradeweb claimed was a significant advancement in credit trading and would be especially beneficial to clients using passive investment strategies that profit from executing trades at the market close. It will also give clients more flexibility in arranging trades before the closing.

According to an estimate from Tradeweb, roughly 30% of all portfolio trades are executed using closing prices, presenting an opportunity for more of these large and critical trades to be electronified at the close.

The enhancement follows the launch of Tradeweb’s Trade at Close functionality in October last year, which allows US and European clients to execute portfolio trades electronically at end-of-day prices, allowing them to better manage large and critical credit trades.

The firm has also increased the capacity of its portfolio trading tool to over 2,000 line items, which it said will enhance its ability to put various dealers in competition and to transfer large amounts of risk in a single portfolio trade.

Tradeweb has experienced record growth in portfolio trading, with an average daily volume (ADV) of $1.4 billion in the first quarter of this year as well as an increase in client use of its tool to over 50% YoY.

Originally launched in 2019, Tradeweb’s portfolio trading has seen ADV on the Tradeweb credit platform increase by more than 725%.

“We collaborate closely with our clients to seek out new ways to enhance the portfolio trading process, building off of previous Tradeweb innovations like Tradeweb Ai-Price and MCNS that our clients have already integrated into their trading workflow,” said Chris Bruner, head of US institutional fixed income at Tradeweb. “Targeted enhancements like these are driven in part by the evolving needs of our market and our clients’ willingness to embrace these innovations.”