Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets has announced that FTSE Russell will make a price source change to include Tradeweb FTSE benchmark closing prices for U.S Treasuries, European Government Bonds and UK Gilts in FTSE’s global fixed income indices, including its premiere World Government Bond Index (WGBI).
FTSE Russell disclosed this change during its semi-annual country classification announcement on October 8th, 2024. The WGBI, which was launched 40 years ago, measures the performance of fixed-rate, local currency, investment-grade bonds and comprises sovereign debt from over 25 countries, denominated in a variety of currencies, and with a market value of more than $30 trillion. The inclusion of Tradeweb FTSE Closing Prices is expected to go into effect in March 2025.
These benchmark prices are administered by FTSE Russell in accordance with the EU and UK Benchmark Regulation and the IOSCO Principles for Financial Benchmarks and can be used in index construction, as well as reference rates for a broad range of use cases, including trade-at-close transactions and derivatives contracts.
Lisa Schirf, Global Head of Data & Analytics at Tradeweb, said:
“The World Government Bond Index is FTSE’s flagship global index and a leading global benchmark for fixed income markets. The inclusion of Tradeweb’s benchmark closing prices in FTSE’s indices validates our continued commitment to develop the next generation of fixed income pricing and index trading products for traders and investors worldwide.”
The existing partnership between Tradeweb and FTSE Russell was announced in October 2023 and included the development of benchmark closing prices, which would be administered by FTSE Russell and derived from trading activity on Tradeweb’s platform. In June 2024, Tradeweb announced the launch of Tradeweb FTSE U.S. Treasury closing prices, utilizing an enhanced methodology, which also facilitates the calculation of bid and offer prices. Most recently, this methodology was extended to UK Gilts and European Government Bonds and is available for clients today.
Scott Harman, Head of Fixed Income, Currencies and Commodities at FTSE Russell, said:
“We’re pleased to announce the price source change within our global fixed income indices to include Tradeweb FTSE closing prices for these significant global rates markets. It ensures our indices continue to incorporate transparent, representative data sets across the diverse universe of fixed income markets that they track. Additionally, FTSE Russell’s benchmark administration of these prices brings a new level of transparency and rigorousness to the valuation of fixed income markets and our indices.”
In addition to providing benchmark closing prices, Tradeweb plans to expand and enhance electronic trading functionality for FTSE Russell Fixed Income indices and customized baskets through tools and protocols such as RFQ (request-for-quote), AiEX (Automated Intelligent Execution tool) and Portfolio Trading, offering trade-at-market close, trade-at-month-end and other features conducive to index rebalancing trades. For clients seeking to efficiently express a view on FTSE Russell indices and baskets, providing enhanced trading functionality can help efficiently manage what are often their largest and most critical trades.
FTSE Russell is a business owned by the London Stock Exchange plc (LSEG). LSEG is the controlling shareholder of Tradeweb.
