TradeWeb wins this award for the third year in a row, and deserves it in 2002 as much as it did before. After establishing itself early on as a high-quality platform for US treasuries, it simply continues to add new banks, new buy-side firms, new products and new back-end efficiencies. It has become an integral part of dealer-to-client business in several markets and the pace of development shows no signs of slowing.
The early model was simple but effective – an enquiry-based dealer-to-investor system for US treasuries, with seven of the biggest dealers involved as shareholders and dealers. Soon the platform was putting through trillions of dollars in trading, and now has 20 dealers on the system.
That sort of volume makes it exceptional in online trading systems, as does the fact that it is a consortium site that is making a profit. However, TradeWeb very quickly expanded its range of products beyond US treasuries. It continued to evolve, even when tough market conditions meant that other sites had to freeze development or fold altogether.
Since last year, growth in US and European sovereign trade volumes has continued apace. US treasuries volume was up 40% in the first six months of 2002, while euro sovereign volumes went from around e25 billion a month to over e70 billion in the 12 months to June 2002.
TradeWeb has rolled out euro Supras – including Freddie Mac’s euro issues. It has also launched trading of US treasuries in European market hours.
Its post-execution STP services have also developed, through the introduction of TradeXpress, which was launched in May 2002. In the words of Lee Olesky, president and CEO of TradeWeb Group: “There’s been a lot of talk about STP but not much in the way of results. We’ve got it.”
TradeWeb and MarketAxess – our runner-up this year – are now also competing directly in the corporate bond market, as TradeWeb has recently launched corporate benchmark trading in the US.
MarketAxess is a runner-up for the first time in these awards this year in recognition of its impressive staying power. Electronic credit trading is difficult at the best of times but on a multibank platform and during the most volatile period in credit that anyone can remember it is especially tough. It has been building volumes and credibility. According to MarketAxess CEO Rick McVey, trading volume is up 300% on last year. Volumes for the third quarter of 2002 broke the site’s records at over $11 billion. Over 5,000 clients are now signed up from around 450 institutions.
