BlackRock and Tradeweb progress to the next stage of their collaboration
In a significant move for the financial industry, Tradeweb Markets Inc. has partnered with BlackRock, the world's largest asset manager, since late 2022. This partnership has seen several institutions, including Federated Hermes, Algebris Investments, PGIM Fixed Income, Stone Harbor Investment Partners, and Insight Investment, join the Tradeweb AllTrade network.
The integration of Tradeweb's platform with BlackRock's Aladdin order execution management system (OEMS) enables Aladdin users trading U.S. and European Credit access to enhanced liquidity via Tradeweb AllTrade. This collaboration aims to expand with new features such as direct access to Tradeweb's RFQ and Automated Intelligent Execution (AiEX) protocols.
In the first phase of the partnership, common clients can view Tradeweb's Ai-Price, Liquidity Score, and select dealer axe streams in the Aladdin platform. This partnership has already made significant progress in improving access to credit liquidity.
Since its launch in 2017, institutional all-to-all trading has grown to represent nearly 28% of RFQ electronic volume. Tradeweb AllTrade offers Aladdin users access to new liquidity pools and market sectors, including Rematch, Tradeweb Direct, and Tradeweb's network of institutional clients.
Tradeweb Direct offers live executable credit streams in 26,000 securities daily. Rematch provides access to billions of unmatched risk from Tradeweb's Dealer Sweep. The firm's share of fully electronic U.S. High Grade TRACE has increased 5-fold to 16.6%, and the share of fully electronic U.S. High Yield TRACE has nearly 7-folded to 7.8%.
The partnership made up 32% of in-comp RFQ for High Grade credit and 44% for High Yield credit year-to-date through November. In the third quarter of 2023, Tradeweb reported a record $137 billion in AllTrade volumes, an increase of over 50% year-over-year. Tradeweb's average daily volume in credit trading globally, year-to-date through November, exceeds $27.0bn.
Elisabeth Kirby, Managing Director, Head of Market Structure at Tradeweb, stated that the goal is to facilitate end-to-end credit workflow and allow clients to tap varied sources of liquidity. Kamya Somasundaram, Global Head of Aladdin Partnerships, expressed excitement about the next stage of the multi-year partnership with Tradeweb. The next phase of the partnership aims to create greater liquidity, connectivity, and transparency across markets.
The progress made so far in this partnership between Tradeweb and BlackRock has made a considerable impact on improving access to credit liquidity, and the future looks promising as they continue to provide common clients with more seamless access to liquidity and improved workflow efficiency as credit markets evolve.
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