Tradeweb Markets and the Tokyo Stock Exchange (TSE) are set to collaborate to expand liquidity in Japanese exchange traded funds (ETFs) through the launch of a new direct link.
Enrico Bruni
Specifically, the link will be between Tradeweb and TSE’s RFQ platform CONNEQTOR.
According to the businesses, this will “allow Tradeweb buy-side clients to include CONNEQTOR liquidity providers when launching a trade enquiry on the Tradeweb Japan-listed ETF marketplace”.
Enrico Bruni, head of Europe and Asia business at Tradeweb, said: “This exciting collaboration between Tradeweb and TSE’s CONNEQTOR platform demonstrates our focus on linking liquidity pools for the benefit of institutional investors looking to transfer risk with a higher degree of certainty.
“We are in the business of enhancing clients’ execution experience, and we look forward to bringing more time and cost efficiencies to investors trading Japanese ETFs, both locally and globally.”
The first transaction on new connectivity has already taken place with Global X Japan having been the first to execute.
Through the direct link, clients can submit orders from the Tradeweb user interface to CONNEQTOR’s list of market makers as well as to Tradeweb’s network of liquidity providers.
Transactions with CONNEQTOR market makers will be cleared and settled through the post-trade infrastructure of TSE.
“CONNEQTOR has been developed as a platform to enable investors to trade ETFs ‘faster and cheaper’. We hope that the new connection with Tradeweb will promote investment in the Japanese market by allowing investors outside Japan, who have had difficulty using CONNEQTOR, to easily access ETFs listed on the Tokyo Stock Exchange from overseas,” added Moriyuki Iwanaga, president of Tokyo Stock Exchange.
“TSE will continue to strive to provide and develop a highly convenient market environment, where investors can enjoy better prices and smoother execution.”