Tradeweb has announced that the addition of actionable axes to its trading platforms has significantly improved institutional investors’ access to high-quality liquidity. Axes, added to the platforms in March 2014, indicate where market-makers have inclinations to buy or sell particular instruments – information that dealers can use to find deals faster and at better rates.
Since the introduction of the new feature, the volume of axed, euro-denominated credit trading on Tradeweb has more than doubled in comparison to non-axed trading, while axed government bonds have also seen a significant increase. Furthermore, Tradeweb data shows that the likelihood of successfully completing a trade following an RFQ is much greater with axed dealers than with non-axed dealers.
“Our investment in axe functionality has significantly improved investors’ ability to discover and access high quality liquidity in European credit and government bond markets,” said Enrico Bruni, head of Europe and Asia at Tradeweb. “Electronic markets are enabling more effective and efficient execution, and the growing use of axes on our platform clearly reflects that trend.”