Tradeweb upgrades RFQ for European bonds amid ‘liquidity challenges’

Tradeweb develops its RFQ model to ‘reduce risk of trading information leakage.’

Tradeweb has announced it has upgraded its RFQ process that 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.

It also helps users “meet their best execution requirements by guaranteeing that the required number of dealers respond to the price request.”

Tradeweb claims the new protocol “significantly reduces the risk of trading information leakage which can occur with medium to larger trades being sent to the entire market.”

Rupert Warmington, head of European credit at Tradeweb said: “Over the past few years, the buy-side have faced numerous liquidity challenges as market makers have taken less risk on their books.

“FlexRFQ represents a far more flexible and smart way to trade and source liquidity.”

Traders at leading asset managers recently warned investors could be losing out due to the introduction of MiFID II pre-trade transparency rules.

Many buy-siders agree information leakage and price manipulation could increase under the imposed fixed income rules, and undermine already diminishing liquidity.