Since the underlying indices of bond ETFs are often comprised of hundreds if not thousands of component holdings, it is expensive to acquire all of the underlying bonds to process a creation order. The Tradeweb’s new initiative would be a “useful tool” to source the required bonds for a fixed income ETF order.
“Feedback generally has been very positive and we have added more buyside clients and dealers,” Bruni said in the article.
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Max Chen contributed to this article.