Tradeweb has expanded its portfolio trading services to European Government Bonds (EGBs).
Tradeweb has facilitated electronic portfolio trading for corporate bonds since 2019. Responding to client demand, UK Gilts, euros and single currency notes are included in the expanded offering.
“As fixed income trading has evolved to transcend traditional silos, we continue to develop our platform to reflect how clients want to transfer risk right now,” commented Roderick Joniaux, head of European government and supranational products at Tradeweb.
“Portfolio trading has been hugely successful in credit and extending it into government bonds plays well into our belief of bringing different asset classes and products closer together. The launch of portfolio trading for European and UK government bonds allows us to achieve exactly that,” he added.
The solution allows institutional traders to bundle trades and execute them as a single unit with a sole counterparty. A popular strategy for risk management, portfolio trading has been a steadily growing fixture of the bond market. A research report from Barclays earlier this year suggested that it could take up to a fifth of trading volumes in European investment grade credit by 2028.
READ MORE: Barclays: European portfolio trading to hit 18% in three years
The first EGB portfolio trading service was completed by L&G and Citi.
Todd Coletto, head of rates business development for the UK and Europe at Citi, noted: “The expansion of the functionality from credit to rates bonds is an exciting development for the dealer community, as it allows us to provide our government bond clients with competitive and transparent pricing for instruments of varying liquidity profiles.”
