©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

The information contained herein is highly confidential and some or all of it may constitute material, non-public information under applicable securities laws. This information must be kept strictly 

confidential, may not be disclosed or distributed to anyone without the express written consent of Tradeweb Markets LLC, and may only be used as expressly permitted by any applicable nondisclosure, customer, or other written agreement with Tradeweb.

TRADEWEB PRESENTATION TO 

MARKET RISK ADVISORY COMMITTEE

JULY 2020
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

About Tradeweb

2

A powerful client network that trades over $700 billion daily across our global electronic marketplaces, 

which are deeply integrated and supported by our proprietary technology

TRUSTED RELATIONSHIPS, MANY DEVELOPED OVER 20+ YEARS EFFICIENT & TRANSPARENT TRADING

90%+ 

TOP 100 GLOBAL 

ASSET MANAGERS

50+

CENTRAL BANKS/

SOVEREIGN ENTITIES

65+

COUNTRIES

45,000+

FINANCIAL 

ADVISORS

RATES

CREDIT

EQUITIES

MONEY 

MARKETS

THREE CLIENT SECTORS

INSTITUTIONAL

WHOLESALE

RETAIL

2,500+

CLIENTS

80%+ 

TOP 25

INSURANCE COMPANIES

OUR CLIENT NETWORK TRADEWEB SEF

PRODUCTS

TRADED

GOVERNMENT 

BONDS

TBA MBS

INTEREST 

RATE SWAPS

40+

A COMPREHENSIVE MARKET OFFERING

APR 2010

First centrally 

cleared multidealer electronic 

IRS trade on 

Tradeweb >

FEB 2011

First fully 

electronic CDS 

trade executed 

and cleared >

2013

Granted initial 

SEF status

TW introduced 

compression 

tool >

2020

TW SEF 

market share 

over 70% 

market in 

Interest Rate 

Swaps >

TW SEF: REQUEST FOR QUOTE (RFQ) & CLICK TO TRADE

INTEREST RATE SWAPS: 23 CURRENCIES, 

OUTRIGHT SWAPS, CUSTOM DATES, MULTI LEG 

PACKAGES

CREDIT DEFAULT SWAPS: CDX, ITRAXX

DW SEF: CENTRAL LIMIT ORDER BOOK (CLOB)

INTEREST RATE SWAPS: IRS vs. UST, CURVES, 

BUTTERFLIES
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

Trading Protocols

3

Tradeweb offers a comprehensive range of trading and workflow tools that 

cater for all trading strategies and trade sizes across its two SEF entities, 

TW SEF and DW SEF

RFQ CLOB

Traditional 

RFQ

Multi-dealer /

Single-dealer

disclosed execution

Relationship-oriented 

risk transfer; minor 

market disclosure

Request for 

Market

Disclosed request 

for 2-way markets

Mitigated pre-trade 

information disclosure

Compression 

and List Trading

Transact lists of up 

to 250 custom 

swaps at a time

Operational efficiency 

and maximum flexibility

Click-to-Trade 

Streams / Axes

Greater 

transparency and 

efficiency

Lower touch execution 

of small size; minimal 

disclosure

Central Limit 

Order Book

Anonymous trading, 

frequent execution

Low latency anonymous 

execution

EXECUTION 

TYPE

RATIONALE
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

• TW SEF is currently the 

dominant swap trading venue 

in the dealer-to-client market 

place

• TW SEF IRS Market Share 

is currently over 70%

• Since 2014, IRS volumes have 

grown over 1000% at 

Tradeweb

• In the first full year after the 

SEF mandate ~25% of 

Tradeweb Markets IRS volume 

was still done off venue

• By 2017, over 90% of global 

Tradeweb IRS volume was 

done on venue with almost all 

that done on SEF

IRS Trading at Tradeweb

4

176bn

39bn

0

50

100

150

200

250

2014 2015 2016 2017 2018 2019 1H2020

Off Venue On SEF On MTF (UK) On MTF (EU) On ETP

ADV USD Billions

182bn

36bn

8bn
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

• Regulation to promote onvenue trading and pre-trade 

price transparency (e.g. Dodd 

Frank, MiFID II) has had its 

desired effect in every 

jurisdiction where it has been 

increased

• Most vital in these efforts has 

been regulatory emphases on 

equivalence and 

harmonization, which remain 

important

Regulation and Trading Volume

5

0%

2,000%

4,000%

6,000%

8,000%

2013 2016 2019

USD SWAP GROWTH

Tradeweb BIS

0%

500%

1,000%

1,500%

2013 2016 2019

EUROPEAN SWAP GROWTH

0%

500%

1,000%

1,500%

2,000%

2,500%

3,000%

2013 2016 2019

JPY SWAP GROWTH

INTEREST RATE DERIVATIVE ADV 

GROWTH SINCE APRIL 2013
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

• In the first few years of 

SEF trading, 20-30% of 

SEF IRS activity was 

transacted on a Permitted 

basis (non-MAT), as 

opposed to Required 

(MAT)

• Year to date 2020, 48% 

of volume on TW SEF are 

Permitted Transactions

Evolving Trade Type Breakdown on TW SEF

6

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2014 2015 2016 2017 2018 2019 2020

Required Permitted

MAT vs Non-MAT Breakdown
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

In the face of extraordinary global volatility and many participants working remotely, 

March 2020 proved to be our busiest month ever. Average daily volume for Tradeweb 

Markets was a record $1.0 trillion, an increase of 41.5% year-over-year. 

This included exceptionally high volumes across asset classes in March, and a new 

record for daily volume was set on March 3, the day of the Federal Reserve emergency 

rate cut, with more than $1.5 trillion traded.

March 2020 Highlights

Interest Rate Swaps:

• TW SEF daily volumes increased 105% YoY to a record $265.5 billion, 

• DW SEF daily volumes increased 8.9% to $7.1bn

Credit Derivatives: TW SEF daily volumes increased 167% YoY to a record $30.4 billion

US Treasuries: As Tradeweb’s oldest product offering and one of the deepest and most 

liquid markets in the world, Treasury market performance presents an interesting baseline 

with which to compare derivatives

• Tradeweb dealer to client UST ADV increased 16.35% to a record $57.5 billion

• Tradeweb Markets (including Dealerweb wholesale) increased 14.7% to $96.4 billion

Tradeweb Platform Performance Through the Crisis

7
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is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

2020 Average Daily Volumes for Select Asset Classes

8

Increased volatility leading into the COVID crisis led to record volumes on 

Tradeweb across multiple asset classes in March

0

10

20

30

40

50

60

70

80

90

100

AVERAGE DAILY TRADED VOLUMES (TW SEF / TRADEWEB)

$ CDS - on SEF $ Swaps - on SEF TRSY
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

IRS trade counts and volumes increased sharply in March across the board on TW SEF; 

however non-competitive Block Trades saw a disproportionate increase

The overall number of trades on TW SEF increased 77% in March and the number of non-competitive 

blocks increased 285% relative to the prior month

Proportion of Block Trades Grew Significantly in March

9

0

100

200

300

400

500

600

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

2020-01 2020-02 2020-03 2020-04 2020-05 2020-06

Non Comp

Above Block

Total Trades
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

Liquidity Metrics Impacted, but Recovered Quickly

10

Hit Rates and Quote rates on Tradeweb and TW SEF both decreased in March, 

however rebounded to near pre-crisis levels in April

30%

40%

50%

60%

70%

80%

90%

100%

HIT RATE

60%

70%

80%

90%

100%

QUOTE RATE

TRSY $ Swaps - on SEF $ CDS - on SEF
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

Bid/Offer spreads widened out on Tradeweb and TW SEF particularly for less 

liquid instruments, however came quickly back in line with platform averages 

Impact of the crisis of Derivative Bid/Offer Spreads

11

0.00

1.00

2.00

3.00

4.00

5.00

6.00

1/2/2020 2/2/2020 3/2/2020 4/2/2020 5/2/2020 6/2/2020 7/2/2020

$ 2Y vs 3M

$ 5Y vs 3M

$ 10Y vs 3M

$ 30Y vs 3M

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

50.00

1/2/2020 2/2/2020 3/2/2020 4/2/2020 5/2/2020 6/2/2020 7/2/2020

CDX IG5Y

CDX HY 5Y
©2020 Tradeweb Markets LLC. All rights reserved. The information contained herein is CONFIDENTIAL AND PROPRIETARY, and any copying or redistribution of the information contained herein 

is strictly prohibited. The information provided herein is not offered as investment, tax or legal advice or an offer to buy or sell securities.

 On TW SEF / Tradeweb and in derivatives markets on the whole, March presented a 

challenging landscape

 We observed market indicators of constrained liquidity, however we did not experience 

any market interruption

 Data driven conclusions combined with feedback from market participants indicate 

that despite market stress and increased volatility, derivatives markets and SEFs 

operated as intended 

 SEFs were flexible enough to absorb modified client behavior and clients remained 

able to transfer risk

What Conclusions Can We Draw?

12