Tradewell Technologies Inc

Volatility Spike = Liquidity Provider Paradise? 🤔 As markets continue to experience heightened volatility, the trading landscape is transforming into a paradise for liquidity providers. This September is shaping up to be one of the most dynamic months yet, with opportunities to capitalize on rapid market shifts. Michael Daley at T. Rowe Price offers insight into the evolving market dynamics, predicting a busy September ahead. His emphasis on utilizing third-party tools and the flexibility to adapt to changing market conditions aligns perfectly with Tradewell’s innovative approach. Our platform is designed to empower traders with real-time tools and analytics, enabling them to respond quickly and effectively to market movements. Tradewell Technologies Inc Unprecedented Success in August August was a record-breaking month for Tradewell. We not only achieved our highest single-day volume ever, but we also set a new record for single-day transaction cost savings. These milestones highlight our commitment to delivering exceptional value to our clients, even in turbulent market conditions. Stay tuned as we continue to provide leading-edge solutions to help you navigate and thrive in today’s volatile market environment.

Last week our clients traded a record $355 MM of US corporate bonds using the Tradewell Technologies Inc automated trading system. Trading volumes were 78% IG and 22% HY. Thursday saw a record single day with 125 trades amounting to $100 MM traded notional. Our clients are executing a range of strategies, including fundamental, distressed, sector rotation, and systematic. Thirteen bonds had trading volumes higher than $5 MM during the week illustrating how large positions can be passively accumulated over time. Please reach out to learn more about how Tradewell is redefining corporate bond trading. https://lnkd.in/e525-ijK

There are three key trends we at Tradewell Technologies Inc are seeing in the corporate bond market: - Dealers continue to shift market-making from voice to algo: Most large dealers have been operating corporate bond algos for the last ten years. What initially started as a client service - providing odd-lot electronic liquidity to clients - has evolved into a major component of dealer trading flows. Combined with portfolio trading and, in some cases, ETF arb, algo books control up to 50% of dealer liquid credit balance sheets. Algos are increasing responsible for large electronic trades and, in some cases, have been given primary market-making responsibilities for specific sectors. - Bond liquidity fragmenting into “haves” and “have nots”: The electronic market is bifurcating into trades that fit dealer algos by ticker and size and those that do not. Given the reduction in voice market-making by dealers, the bifurcation of the market means that orphaned bonds are harder to trade both voice and electronically. Buy-side traders unable to source voice liquidity are turning to electronic venues, but RFQs not handled by dealer algos see few or no responses. This creates an opening for the buy-side to provide liquidity in less-liquid bonds. Buy-side-to-buy-side trading, especially in less-liquid bonds, is only feasible with an algo trading system. We are increasingly seeing our clients being the sole quote on illiquid bond RFQs. - Intense venue competition leading to fragmentation: Electronic volumes have grown to almost 50% of the total and the three primary venues’ market shares have become more even. Venues are ramping up protocol experimentation as they look to support a world where buy-side algo trading is the norm. Each major venue has a distinct liquidity pool and unique trading protocols necessitating aggregation and standardization. Interacting with venue liquidity across established and emerging trading protocols requires a sophisticated, fast-evolving trading system. These three trends make it essential for buy-side trading desks to evolve their execution strategies beyond relying exclusively on dealer voice liquidity. A technology trading solution that is comprehensive and cost-effective is becoming a must for large institutional trading desks. Please reach out to learn more about how Tradewell is redefining corporate bond trading. https://lnkd.in/e525-ijK

We're excited to announce that we're partnering with The Finance Hive at their upcoming Fixed Income US Members Meeting. Taking place on 26th September, we'll be coming together at the Moxy Brooklyn in Williamsburg to demystify Corporate Bond Trading Algos and explain how they are being used by Tradewell Technologies' diverse customer base. We'll be joined by buy side members from Vanguard, American Century Investments, J.P. Morgan Asset Management, T. Rowe Price, Morgan Stanley Investment Management, and so many more... #corporatebonds #tradingalgos

Another great quarter at Tradewell Technologies! Our clients are applying Tradewell algo trading technology to solve their execution challenges. New trading strategies are pushing higher not just the average trade size, but also the size of orders loaded into the Tradewell platform.   Thanks to our wonderful clients for our continued momentum. Please reach out to me or our sales team (sales@tradewelltech.co) to discuss how Tradewell can help you achieve better trading outcomes.   In Q2 2024, our clients traded:

Welcome to the team, Gabby!

Pleased to announce the addition of Gabriella DiBiase as an Analyst to our team! Gabby joins us from Boston College Carroll School of Management where she majored in Finance. Gabby will be working within the revenue organization, supporting sales and relationship management, but also has an interest in computer science. Welcome Gabby!

https://lnkd.in/eaM2ygeb Portfolio manager to trader communication is vitally important to investment performance. There are currently few tools designed to support a collaborative, structured dialogue between a PM and the trading desk. One of our guiding principles when we designed the Tradewell UI was to empower PM-trader collaboration. Our UI provides a shared workspace that gives PMs and traders a common language to discuss market opportunities, valuation, and liquidity. The outcomes of these conversations can be seamlessly converted to orders in our system and efficiently executed in the electronic markets.

https://lnkd.in/ePD33aHB All-to-all trading is the future of the corporate bond market, especially for the 10,000 - 15,000 most liquid bonds. This article correctly points out that market fragmentation and lack of technology is an important reason why the all-to-all share seems stuck at 17%. Buy-side algo execution systems, like the one we offer at Tradewell Technologies, effectively solve this problem. A major limiting factor to all-to-all trading is matching opposite trading intentions at the same time, on the same day, and on the same trading venue. On any given day, most buy-side traders concentrate on a small subset of bonds in their portfolio, and use only one, or perhaps two, trading venues. We are seeing more of our clients load their entire books into our system, specifying a level where they would add to a position and a level where they would reduce it. They then allow our technology to respond to aggregated trading opportunities across all trading venues, utilizing our best-in-class bond pricing engine. As more buy-side firms adopt this strategy, the odds of a buy-side-to-buy-side match increase dramatically, opening up the possibility of VWAP-style execution of blocks using RFQs on existing trading venues.

Last month, our clients traded over $1.1 billion of US high grade and high yield corporate bonds using the Tradewell automated trading system. This represents a 74% increase over April. Our clients’ trades occurred across the leading electronic trading platforms, utilizing a number of different protocols. Interestingly, our clients are starting to use our system to accumulate larger positions by passively executing a number of smaller trades. In the past month, clients accumulated over 30 positions larger than $5 MM, of which 10 were achieved within a single trading day. I want to thank all of our amazing clients for their support and encourage everyone interested in boosting their corporate bond trading to reach out.