Tradeweb, a pioneer in the development of electronic bond and commercial paper trading owned by Thomson Reuters and a consortium of dealers, has launched a marketplace for bank deposits. The platform is geared towards the European marketplace initially, but the U.S. version is pending. Tradeweb brings institutional investors and a network of dealers together to make electronic markets in Treasuries, Agencies, Agency Discount Notes, Commercial Paper, Euro CP, Repo, and Canadian Money Markets, among other securities.
Tradeweb London's release says, "The Tradeweb Deposit marketplace supports the placement of new and maturing Deposits, initially in five currencies: Euro, Sterling, US Dollar, Swiss Franc and Yen. The marketplace also provides real-time, indicative composite rates for price discovery, and STP." Initial banks participating include: Anglo Irish Bank, Dexia, KBC, RBS and UBS. (See website Finextra.com's article.)
"The launch of this market is very timely," says President Lee Olesky, "as the credit and short-term funding market is quite difficult right now.... As our Deposit product attracts a growing number of banks and institutions from across Tradeweb's powerful network, we expect our data to become very widely used as an accurate indicator of tradable deposit rates." (FT.com also mentioned the deposits module launch, speculating that the move could "potentially provide another way of calculating funding trends, other than the LIBOR rate.")
TradeWeb also recently introduced a "Money Markets Composite" page, says its quarterly eBond Review newsletter. It includes live pricing, breakeven analysis, a Fed funds-target rate calculator, and an inventory chart for commercial paper.
