Tradeweb Buys CodeStreet to Increase Bond Trading on Its Markets

  • CodeStreet's software uses data to find overlooked bond trades
  • Tradeweb started to offer corporate bond trading in 2014

Tradeweb Markets LLC has bought CodeStreet LLC to help its customers find more bond trades, hopefully increasing the number of transactions on its debt markets.

Asset managers have struggled to trade in the $8.2 trillion U.S. market for corporate bonds since the financial crisis. That has prompted a swathe of firms, including Tradeweb in 2014, to offer services that should make it easier to buy and sell company debt.

CodeStreet’s software should make it easier for traders to complete deals on Tradeweb’s markets. The code searches for previously overlooked fixed-income trades and helps manage transactions, according to an e-mailed statement on Wednesday. The terms of the deal weren’t released.

“We are committed to building the most comprehensive electronic corporate-bond marketplace, and the acquisition of CodeStreet is a valuable building block in expanding our established offering with improved sourcing of liquidity and workflow management,” Lee Olesky, Tradeweb’s CEO, said in the statement.

The average size of bonds that change hands on Tradeweb is $2 million, according to the company. Investors have been slow to embrace electronic bond trading for deals worth more than $1 million out of concern that making their order public will sway the value of the underlying security before the trade is done. Tradeweb also offers to trade U.S. Treasuries, various government bonds, and swaps.

Tradeweb is owned by a consortium including Thomson Reuters Corp. Bloomberg LP, the parent company of this news organization, competes with Tradeweb and Thomson Reuters in facilitating bond and swap trades between investors and banks, and in providing financial data and news to investors.

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