Tradeweb Partners with Tokyo Stock Exchange to Enhance Access to Japanese ETF Liquidity
New Collaboration Aims to Streamline Japanese ETF Trading for Institutional Investors
Tradeweb Markets Inc. (Nasdaq: TW), a leading global operator of electronic trading platforms across rates, credit, equities, and money markets, has announced a new collaboration with the Tokyo Stock Exchange (TSE), one of the largest stock exchanges in the world. This partnership introduces a direct link between Tradeweb and TSE’s request-for-quote (RFQ) platform, CONNEQTOR, aiming to enhance liquidity access for institutional investors trading Japanese exchange-traded funds (ETFs).
Enhanced Connectivity through CONNEQTOR Integration
The integration allows Tradeweb’s buy-side clients to tap into CONNEQTOR’s extensive network of liquidity providers when initiating trade inquiries on Tradeweb’s Japan-listed ETF marketplace. Global X Japan executed the first trade using this new connectivity, marking a significant step in broadening access to the Japanese ETF market.
Enrico Bruni, Head of Europe and Asia Business at Tradeweb, highlighted the strategic value of the partnership:
“This collaboration with TSE’s CONNEQTOR platform is a key step in connecting liquidity pools, benefiting institutional investors by improving risk transfer with greater certainty. We aim to enhance clients’ trading experience, driving time and cost efficiencies for those engaging in Japanese ETF markets both locally and globally.”
Expanding Access to Japanese Markets
Moriyuki Iwanaga, President of Tokyo Stock Exchange, emphasized the benefits of the collaboration for global investors:
“CONNEQTOR was designed to enable faster and cheaper ETF trading. The connection with Tradeweb opens up the Japanese ETF market to international investors, simplifying access to ETFs listed on the Tokyo Stock Exchange. TSE remains committed to enhancing market convenience, offering better pricing and smoother execution for investors worldwide.”
Improved Trading Experience for Clients
With the new direct link, Tradeweb clients can seamlessly submit orders via the Tradeweb interface to CONNEQTOR’s network of market makers, alongside Tradeweb’s existing liquidity providers. This setup ensures clients receive competitive two-way quotes. Moreover, Tradeweb clients can utilize its advanced tools, such as the AiEX rules-based automated execution, while leveraging TSE’s post-trade infrastructure for seamless clearing and settlement.
Jooyoung Yun, CIO of Global X Japan, expressed support for the initiative:
“We welcome efforts that increase access to the Japanese ETF market. The collaboration between Tradeweb and CONNEQTOR brings enhanced connectivity, flexibility, and streamlined processing to institutional ETF trading in Japan.”
Building on Tradeweb’s Global ETF Trading Capabilities
This collaboration with TSE aligns with Tradeweb’s strategy to expand its award-winning platform, which facilitates ETF trading across Asia, Europe, and the U.S. Tradeweb clients benefit from multi-dealer liquidity, enhanced pre-trade transparency, and competitive pricing. The platform also offers advanced automated trading options, including its AiEX tool and time release functions.
Since the launch of its first ETF platform in Europe in 2012, Tradeweb has revolutionized ETF RFQ execution, extending its services to the U.S. in 2016 and Asia in 2018. Between Q1 and Q3 2024, Tradeweb reported global ETF trading volumes exceeding USD 1 trillion, with a 30% year-over-year increase in institutional ETF volumes by Asia-based clients.
Growth of CONNEQTOR Platform
Launched in February 2021, CONNEQTOR was designed to enhance the efficiency of ETF trading in Japan by offering real-time best price quotes and reducing transaction costs. The platform now serves over 250 institutional investors who can request quotes from global market makers simultaneously, mitigating counterparty risks. In July 2024, CONNEQTOR recorded a new high in monthly trading value, reaching JPY 295.5 billion (USD 1.93 billion), with an average daily trading volume of JPY 13.4 billion (USD 87 million), marking a 97% increase compared to the previous year.
Through this collaboration, Tradeweb and TSE aim to further bolster the accessibility and efficiency of the Japanese ETF market, providing institutional investors with enhanced trading options and greater market connectivity.
