Tradeweb and TSE Partnership Enhances Access to Japanese ETFs

Tradeweb Markets Inc. has announced a strategic partnership with the Tokyo Stock Exchange (TSE), aiming to improve institutional investors' access to Japanese exchange-traded fund (ETF) liquidity. This partnership integrates Tradeweb‘s platform with TSE's request-for-quote (RFQ) system, CONNEQTOR, establishing a seamless link for Tradeweb clients to access liquidity providers (LPs) within the TSE’s RFQ environment.

This collaboration enables Tradeweb clients to submit trade inquiries that include CONNEQTOR‘s liquidity providers alongside Tradeweb’s extensive network. This enhanced setup ensures that clients receive competitive, two-way quotes while maintaining the efficiency of Tradeweb‘s automated execution tool, AiEX. Additionally, TSE’s advanced post-trade infrastructure streamlines clearing and settlement processes with CONNEQTORs market makers, elevating the overall trading experience for Tradeweb clients on Japanese ETFs.

Global X Japan was the first to complete a transaction through this integrated platform, marking a milestone for the partnership. Enrico Bruni, Head of Europe and Asia Business at Tradeweb, emphasized the value of this collaboration: “Our focus on linking liquidity pools benefits institutional investors, offering them more certainty and efficiency in transferring risk. We look forward to bringing more time and cost savings to those trading Japanese ETFs locally and globally.”

This partnership builds on Tradewebs well-established ETF offering, which spans major global markets including Asia, Europe, and the U.S., and provides clients with multi-dealer liquidity, pre-trade transparency, and competitive pricing. Since its first ETF platform launch in Europe in 2012, Tradeweb has been a leader in ETF RFQ execution. From Q1 to Q3 2024, Tradeweb reported over USD 1 trillion in global ETF trading volumes, with a 30% year-over-year growth in ETF volumes from Asia-based clients.

The CONNEQTOR platform, introduced in February 2021, plays a significant role in accelerating ETF trading in Japan. Its design prioritizes real-time best prices from global market makers, aiming to minimize both transaction costs and operational risks. By July 2024, CONNEQTOR reached a record trading value of JPY 295.5 billion (USD 1.93 billion), achieving an impressive 97% increase from the previous year.

This strategic partnership strengthens Japans ETF trading landscape, improving efficiency, transparency, and accessibility for institutional investors. Moriyuki Iwanaga, President of the Tokyo Stock Exchange, commented, “We hope that this connection with Tradeweb will promote investment in the Japanese market by making it easier for overseas investors to access ETFs listed on TSE. We are committed to providing a more convenient market environment with better pricing and smoother execution.”

Jooyoung Yun, Chief Investment Officer of Global X Japan, echoed this enthusiasm: “Tradeweb and CONNEQTOR have addressed the needs of institutional investors, enhancing connectivity, flexibility, and straight-through processing for Japanese ETF trading.”

About Tradeweb

Tradeweb Markets Inc. is a global operator of electronic marketplaces for rates, credit, equities, and money markets. With advanced trading solutions, Tradeweb has been a leader in delivering automated trading and superior liquidity across the globe, continuously enhancing trade efficiency and market transparency for institutional clients.

Final Thoughts

This partnership between Tradeweb and TSE demonstrates a significant leap forward for global ETF trading. By combining Tradeweb‘s automated trading capabilities with TSE’s efficient post-trade infrastructure, institutional investors can now benefit from streamlined access to Japanese ETFs. This alliance ultimately supports the growth of the Japanese ETF market, promoting a more competitive and accessible trading ecosystem.