Tradeweb Markets Inc and FTSE Russell collaborate on fixed-income indices
Tradeweb Markets Inc has unveiled a strategic partnership with FTSE Russell to create an advanced generation of fixed income index pricing and index trading products. The collaboration aims to expand benchmark pricing across a broader array of fixed income securities, administered by FTSE Russell as benchmarks.
This initiative builds on their existing partnership for UK Gilt and European Government bonds to deliver robust and reliable pricing. The closing prices amalgamate trading activities from Tradeweb’s electronic platform, ensuring alignment with actual trading levels and intraday pricing. These prices comply with regulations and can be used as reference rates for trade-at-close transactions and derivatives contracts.
The partnership intends to broaden coverage across various regions and fixed income asset classes in the future. FTSE Russell will explore integrating Tradeweb pricing into their indices, starting with the FTSE World Government Bond Index (WGBI). Tradeweb also plans to enhance electronic trading functionality for FTSE Russell Fixed Income indices and customised baskets using different trading tools and protocols, catering to index rebalancing trades and client needs.
Lisa Schirf, Global Head of Data & Analytics at Tradeweb, emphasizes that this collaboration will provide clients with reliable benchmarks for their end-of-day trading strategies. Scott Harman, Head of Fixed Income Indices at FTSE Russell, believes the partnership will enhance tractability and tradability of indices, potentially transforming the Fixed Income ecosystem. Both entities stress the importance of trusted reference price data for financial firms managing investment portfolios and compliance. Tradeweb and FTSE recently introduced benchmark closing prices for European Government Bonds, extending their offerings for Euro-denominated nominal bonds issued by several European countries.