Tradeweb and FTSE Russell Collaborate to Integrate Fixed Income Index Pricing Data

Tradeweb Markets Inc. has partnered with FTSE Russell to incorporate Tradeweb FTSE benchmark closing prices for U.S. Treasuries, European Government Bonds, and UK Gilts into FTSE’s global fixed income indices, including the World Government Bond Index (WGBI). This change, set to take effect in March 2025, will enhance transparency and rigor in valuing fixed income markets and indices. The WGBI, launched 40 years ago, includes sovereign debt from over 25 countries and has a market value of over $30 trillion.

The financial world is abuzz with the latest development in the realm of fixed income markets and indices. Tradeweb Markets Inc., a leading global provider of fixed income trading, analytics, and infrastructure solutions, has partnered with FTSE Russell, a leading global index provider, to incorporate Tradeweb FTSE benchmark closing prices into FTSE's global fixed income indices. This collaboration, set to take effect in March 2025, promises to enhance transparency and rigor in valuing fixed income markets and indices [1].

FTSE Russell's flagship offering, the World Government Bond Index (WGBI), is a case in point. Launched 40 years ago, the WGBI includes sovereign debt from over 25 countries and boasts a market value of over $30 trillion [1]. This partnership with Tradeweb will enable FTSE Russell to utilize Tradeweb's electronic platform data to calculate more robust and accurate benchmark prices for U.S. Treasuries, European Government Bonds, and UK Gilts. These closing prices will be incorporated into the WGBI and other FTSE indices, providing financial firms with more reliable reference prices for managing investment portfolios, evaluating securities, and satisfying regulatory requirements [1].

Tradeweb's enhanced methodology for calculating these closing prices captures transaction costs based on executable pricing quotes collected through the Tradeweb platform, in addition to mid prices [1]. This approach has been rigorously tested and is planned to be incorporated into Tradeweb's UK Gilts and Euro Government closing prices in the near future [1]. The inclusion of bid and offer prices in these indices will further enhance their value to financial firms, as it provides a more complete picture of market conditions.

This strategic partnership between Tradeweb and FTSE Russell represents a significant step forward in the fixed income market. By providing more transparent and robust benchmark pricing, it aims to enhance the overall integrity and efficiency of global fixed income markets and indices. As we move towards a more data-driven and technology-dependent financial world, collaborations like these are sure to play a crucial role in shaping the future of finance.

References:
[1] Tradeweb and FTSE Russell extend benchmark closing prices to U.S. Treasuries. (2024, June 10). Business Wire. https://www.businesswire.com/news/home/20240610005828/en/Tradeweb-and-FTSE-Russell-Extend-Benchmark-Closing-Prices-to-U.S.-Treasuries