New service provides pricing on roughly
880,000 bonds
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today announced the launch of Tradeweb Ai-Price for
municipal bonds, which will use machine learning and proprietary
data science to calculate daily prices for municipal bonds.
The $4 trillion municipal bond market plays a critical role in
the United States economy, financing operations and projects for
state and local governments and their agencies. While municipal
bonds are widely held by retail and institutional investors, only
1.9% of tax-free fixed coupon municipal bonds traded on a daily
basis during the month of March 2022.1 This relatively low turnover
impacts price discovery, making it potentially costlier and/or more
time-consuming to buy, sell or hold these bonds.
Ai-Price for municipal bonds addresses this problem through a
combination of proprietary data, machine learning and other
advanced data science methods, producing reliable pricing levels
regardless of how often these bonds trade. Tradeweb Ai-Price for
municipal bonds will initially publish end-of-day prices for
approximately 880,000 securities and custom portfolios, based on
data published by the Municipal Securities Rulemaking Board (MSRB)
and through trading activity on the Tradeweb platform. In time,
Tradeweb will expand the model to calculate intraday price
updates.
Lisa Schirf, Managing Director, Global Head of Data Strategy at
Tradeweb, said: “Ai-Price represents the next frontier in applying
data science to help make markets more efficient. We collaborated
with clients as we developed this tool, and we are excited to offer
increased transparency, accessibility and reliability to clients
who trade and invest in the municipal bond market.”
John Cahalane, Managing Director, Head of Tradeweb Direct, said:
“The municipal bond market is ripe for further electronification,
and this service represents a powerful step forward by providing
our clients with enhanced price discovery. Ai-Price for municipal
bonds will optimize our clients’ trading experience and lead the
municipal bond market into a new era of innovation.”
Investors in every major fixed income asset class rely on
Tradeweb data to price trades and portfolios. In addition to
Tradeweb Ai-Price, Tradeweb also calculates IOSCO certified
end-of-day prices for U.K. Gilts and U.S. Treasuries, which traders
and investors can access through a variety of formats, including
the cloud-based AWS Data Exchange.
With more than 240 dealers, roughly 300 institutional clients
and over 40,000 financial advisors as users, Tradeweb facilitates
one in every six trades reported to the MSRB on a daily basis.2
About Tradeweb Markets Tradeweb Markets Inc. (Nasdaq: TW)
is a leading, global operator of electronic marketplaces for rates,
credit, equities and money markets. Founded in 1996, Tradeweb
provides access to markets, data and analytics, electronic trading,
straight-through-processing and reporting for more than 40 products
to clients in the institutional, wholesale and retail markets.
Advanced technologies developed by Tradeweb enhance price
discovery, order execution and trade workflows while allowing for
greater scale and helping to reduce risks in client trading
operations. Tradeweb serves approximately 2,500 clients in more
than 65 countries. On average, Tradeweb facilitated more than $1
trillion in notional value traded per day over the past four fiscal
quarters. For more information, please go to www.tradeweb.com.
Forward-Looking Statements This release contains
forward-looking statements within the meaning of the federal
securities laws. Statements related to, among other things, our
outlook and future performance, the industry and markets in which
we operate, our expectations, beliefs, plans, strategies,
objectives, prospects and assumptions and future events are
forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed under the heading “Risk Factors”
in documents of Tradeweb Markets Inc. on file with or furnished to
the SEC, may cause our actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. In particular, preliminary average
variable fees per million dollars of volume traded are subject to
the completion of management’s final review and our other financial
closing procedures and therefore are subject to change. Given these
risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements contained in this release are not guarantees of future
performance and our actual results of operations, financial
condition or liquidity, and the development of the industry and
markets in which we operate, may differ materially from the
forward-looking statements contained in this release. In addition,
even if our results of operations, financial condition or
liquidity, and events in the industry and markets in which we
operate, are consistent with the forward-looking statements
contained in this release, they may not be predictive of results or
developments in future periods.
Any forward-looking statement that we make in this release
speaks only as of the date of such statement. Except as required by
law, we do not undertake any obligation to update or revise, or to
publicly announce any update or revision to, any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this release.
1 Source: Tradeweb; MSRB
2 Based on average number of clients over last 12 months
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220406005233/en/
Media Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investors Ashley Serrao, Tradeweb + 1 646 430 6027
Ashley.Serrao@Tradeweb.com
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