Home Metrics Data MarketAxess Launches Green Bond Product Suite on the Back of Impressive Trading...

MarketAxess Launches Green Bond Product Suite on the Back of Impressive Trading Volumes

Electronic fixed income trading platform MarketAxess, which also provides market data and post-trade services for the global fixed-income markets, has charged into the sustainable space with the launch of its new ‘Trading for Trees’ incentive program and the rollout of new capabilities designed to streamline clients’ trading and sustainable investing in Green bonds.

The Green Bond initiatives follow a 108% year-over-year increase in global Green bond trading activity on MarketAxess to over US$19 billion in 2019. This growth is amid record growth for Green bond issuance in 2019, and a continued focus on sustainable investing in ESG bonds and bond funds.

TRACE-reported trade volume in bonds financing environmentally friendly activities rose to over $57 billion in 2019, up from nearly US$30 billion in 2018. With a 15% share of trading in these issues, MarketAxess currently ranks as the largest Green bond marketplace in the US.

The platform is partnering with the global reforestation charity One Tree Planted on its trading incentive program. Through the ‘Trading for Trees’ program, which launched at the start of January 2020, five trees will be planted for every US$1 million of Green Bond trading volume executed on the MarketAxess platform, further encouraging clients and dealers to enhance their ESG investment goals. Under the program, institutional investor and dealer clients will get credit for planting trees in the Amazon, Australia and other critical regions while fulfilling their ESG investment strategies. Based on global historical trading activity, MarketAxess expects the Trading for Trees program to plant over 100,000 trees in 2020.

“As one of the world’s largest electronic trading platforms with a global community of participants, we are ideally positioned to enhance our clients’ trading in this fast-growing Green Bond market,” says Chris Concannon, President and Chief Operating Officer at MarketAxess. “We recognise that our company can do even more to support environmentally responsible investing through the launch of our ‘Trading for Trees’ incentive program and new Green Bond trading functionality. These initiatives reflect the values and commitment of MarketAxess and its employees worldwide by combining support for our clients’ sustainable investment activities with direct action to benefit the environment.”

To make it easier for clients to identify specific bond issues and access liquidity to meet their ESG strategies, MarketAxess has also incorporated new Green bond-related trading functionality: including flags to easily identify Green bonds, issuers and dealers, a watchlist functionality to provide a snapshot of Green Bond market activity, an enriched ‘Like Bonds’ tool to identify Green bonds with similar characteristics as non-Green bonds, and enhanced Smart Dealer Select functionality to identify dealers that are providing liquidity in Green bonds.

“As an active Green Bond investor, ease in identifying securities and sourcing qualifying issues is helpful in managing our growing sustainability focused funds and adds further support to this nascent but growing asset class,” notes Ashley Schulten, Head of Responsible Investing, Global Fixed Income at BlackRock.

“We expect this comprehensive market ecosystem with dealers, brokers, and market participants will create a deep and prevailing market,” adds Russell Investments’ Global Head of Trading, Jason Lenzo. “As market participants and stewards of our environment, we also believe it’s critical to support such sustainability initiatives.” 


Most Popular

CALL FOR INTEREST: FAIRR Launches New Investor Engagement Opportunities

US$20 trillion investor network FAIRR is for a limited period opening up two unique engagement initiatives to interested new...

CBI’s Sean Kidney: COVID-19 could teach us how to better respond to the climate change challenge

Join us for the latest Ethical Intelligence Podcast with Climate Bonds Initiative (CBI) CEO Sean Kidney, in which we delve deep...

Shipping and the ‘S’ in ESG

In the second of our three-part ESG in Shipping series, Tony Foster, CEO and Chief Investor Officer of Marine Capital, explores the social...

World Bank launches first sustainable development notes linked to UN Global Compact signatories

WASHINGTON DC: The World Bank today announced plans to issue, for the first time, US dollar-denominated sustainable development notes that provide investors...

UN PRI adds new private equity members

The UN Principles for Responsible Investment (UN PRI) has appointed five new signatory representatives to its private equity advisory committee.

Rio Tinto Pledges US$1 billion to Climate Change Targets

Rio Tinto, one of the world's largest metals and mining corporations, this week announced plans to invest around US$1 billion over...

INSIGHT: Get ready for the EU Green Taxonomy with Impact Cubed’s Arleta Majoch

“Sustainability creates the opportunity for a lot of beautiful storytelling – imperfect as the taxonomy may be, it addresses a real need...

UN PRI: Support Sustainable Companies Through the Coronavirus Crisis, Even if it Means Sacrificing Returns

The UN PRI has issued a statement on the ongoing global Coronavirus crisis, in which it urges investors to support sustainable...

Credit Suisse Appoints Phineas Glover Head of APAC ESG Research

Credit Suisse has appointed Phineas Glover as Head of ESG Research for Asia-Pacific, based in Sydney, Australia. Glover joined the bank in April...

World Economic Forum Releases Framework to Help Business Identify ESG Factors for Long-Term Resilience

ESG factors with financial impact on a company can change over time; identifying these factors before they arise is important for...

In Other News…

Welcome to your end-of-week round-up for November 18-22, bringing you the 'best of the rest' - all the top stories that didn't...

Formuepleje Launches New Better World Fund, Hands Management to Impax

Denmark's largest independent asset manager, Formuepleje, has listed the second fund in its Fortune Care Better World universe, following the debut Better...

Shuen Chan To Lead ESG For LGIM Real Assets

LGIM Real Assets (a division of Legal & General Investment Management) has appointed Shuen Chan as Head of ESG, reporting to...

Aviva Appoints Ed Dixon New Head of ESG, Real Assets

Aviva Investors has confirmed the appointment of Edward (Ed) Vaughan Dixon in the newly created role of Head of ESG, Real Assets.

ESG A New Growth Frontier for Global Asset Managers, Says Moody’s

The rise in ESG investing reflects a shifting consumer preference that has the potential to drive exponential and enduring growth in...
Stay updated
GET THE NEWSLETTER

Get the most relevant ESG
updates delivered direct to
your inbox every week.
Sign up now
to the Ethical Intelligence
Newsletter

Stay updated with all the latest ESG news & much more.
close-link
Welcome to Ethical Intelligence!  We are delighted you are here, and we hope you enjoy our approach to ESG information.  Just to let you know, we are a subscription site, so you are welcome to read up to 10 of our informative ESG articles with no charge.  After that, we ask you to sign up for one of our very reasonably priced subscription packages.  You can do that via the subscribe button on the main menu below, or from the subscribe page you will see after your 11th article click.
close-image
Social Media Auto Publish Powered By : XYZScripts.com