Tradeweb launches European-listed ETF platform

Tradeweb Markets has launched an electronic trading platform for European-listed exchange traded fund (ETF).

The new venture with be conducted through the firm’s European multilateral trading facility operator Tradeweb Europe Limited.

The aim of the platform is to provide clients with greater efficiency and more competitive pricing for over-the-counter ETF trades.

ETFs are an addition to the firm’s existing global trading capabilities in fixed income, derivatives and other products.

Over the counter trading in ETFs contributes a large proportion of assets to the European ETF industry due to the fragmented nature of the market, according to independent research firm ETFGI.

The total assets under management in European ETFs have grown by nearly 40% a year on average over the last decade, and now comprise $309bn.

Enrico Bruni, head of European markets at Tradeweb, said: “Proving best execution is increasingly important for our institutional client base and we expect that this requirement will continue to be a focus in upcoming MiFID II regulations. Electronic trading helps asset managers meet best execution requirements.”

Adriano Pace, Tradeweb’s director of equity derivatives, added: “The platform offers integrated trade processing and a number of functions, such as direction locking and identifier matching, that reduce the risk of errors and substantially improve efficiency.”

Clients can allocate to sub-accounts pre- or post-trade, while straight-through processing reduces manual errors and settlement problems.

So far, client activity on the platform has indicated they are already benefitting from the highly competitive prices on large trades.

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