Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today announced it has joined the Climate Bonds Initiative’s Partners Program, a global movement seeking to mobilise bond markets for climate change solutions. Climate Bonds Initiative is an international, investor-focused not-for-profit organisation, promoting investment in projects and assets necessary for a rapid transition to a low carbon and climate resilient economy.
The Climate Bonds Standard and Certification Scheme is a labelling scheme for bonds, loans and other debt instruments. The rigorous scientific criteria ensure consistency with the goals of the Paris Climate Agreement. The Scheme is used globally by bond issuers, governments, investors and the financial markets to prioritize investments, which genuinely contribute to addressing climate change. The Climate Bonds Initiative has been tracking the green labelled market since 2009. By partnering with Climate Bonds, Tradeweb aims to promote the visibility and accessibility of green bond trading activity across a wide range of asset classes, and leverage Climate Bonds data to provide transparency and clarity around our Green Bond Trading volumes.
“As one of the largest green bond marketplaces in the world, Tradeweb is proud to become an official Partner of the Climate Bonds Initiative,” said Lee Olesky, CEO of Tradeweb Markets. “A sustainable global financial system is no longer optional, it’s a necessity, so we need to leverage available ESG data and research to promote transparency and integrity in Green and Social bond trading.”
In 2020, Climate Bonds screened Green bonds accounted for $79 billion (bn) of the total $82bn in Green bond trading volume executed on Tradeweb. This represents an increase of 65% in screened Green Bond Trading from 2019. The remaining $3bn in volume accounted for trading of non-aligned Green debt.
2020 Green Bond Trading Highlights:
- $56.4 billion in cash rates led by global government bonds
- European government bonds ($43.9bn) and Other* Global bonds ($12.0bn)
- $22.7 billion in global cash credit led by U.S. and European corporate credit
- European Credit ($15.5bn) and US High-Grade Credit ($5.7bn)
“Green investment is expanding in depth and diversity, and Tradeweb occupies a significant position in the market,” said Sean Kidney, CEO Climate Bonds Initiative. “We welcome them to our Partners Program and look forward to working cooperatively in bringing enhanced information and transparency available to institutional investors.”
“Tradeweb’s multi-asset offering gives us a unique vantage point into ESG trading activity,” added Simon Maisey, Global Head of Corporate Development at Tradeweb. “We remain focused on powering clients’ sustainable investment strategies with solutions that efficiently identify and highlight green bonds on our platform, ultimately providing them with a robust view of activity across a broad range of asset classes.”
As a result of the incredible growth green and sustainable markets have seen in recent years, a broadening number of government entities and corporates are now engaging with investors on ESG-aligned initiatives, while making an environmental or social impact. Tradeweb’s collaboration with the Climate Bonds Initiative helps market participants gain valuable insight into this trading activity, allowing a clearer view on how green and other sustainable securities trade in relation to their non-green counterparts. Tradeweb is committed to developing tools to identify green bonds across a wide range of asset classes, with green bond flags already available for European Government bonds and Global Credit.
* Other Global Bonds: AUD, NZD, JPY, CAD Government bonds, Covered bonds, U.S. Agencies and other supranational.
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 40 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $ 830 billion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.
About the Climate Bonds Initiative: Climate Bonds Initiative is an investor-focused not-for-profit, promoting large-scale investment in the low carbon economy. Climate Bonds undertakes advocacy and outreach to inform and stimulate the market, provides policy models and government advice, market data and analysis, and administers an international Standard & Certification Scheme for best practice in green bonds issuance. For more information, please visit www.climatebonds.net.
About Climate Bonds Green Bond Database & Methodology: The Methodology V1.1 outline processes and criteria to define green bonds, green loans, green sukuk and other similar labelled debt instruments as eligible for inclusion in the Green Bond Database.
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