Core Insights - Tradeweb Markets Inc. has successfully launched its Alternative Trading System (ATS) for sukuk and SAR-denominated debt instruments in Saudi Arabia [2][5][6] Group 1: Launch and Initial Transactions - The ATS facilitated its inaugural transaction between BlackRock and BNP Paribas, followed by a trade between BlackRock and Goldman Sachs [3] - The platform is part of Tradeweb's global multi-asset Emerging Markets (EM) platform, which supports over 20 currencies across fixed income cash and derivatives markets [3] Group 2: Regulatory Compliance and Benefits - The Tradeweb ATS operates under the supervision of the Capital Market Authority (CMA) and is designed for professional investors, ensuring compliance with local and global market standards [4] - Key benefits for users include protocol diversification, alignment with local trading conventions, and flexibility for future product extensions into corporate bonds, repurchase agreements, and derivatives markets, pending regulatory consent from the CMA [4] Group 3: Licensing Timeline - In July 2024, the CMA licensed Tradeweb to operate as an ATS for sukuk and debt instruments [5] - In October 2025, the CMA confirmed that Tradeweb had met all regulatory requirements to commence its licensed ATS operations for sukuk and debt instruments [6]

Summary of Key Points from the Conference Call Industry Overview - The focus is on Emerging Markets (EM) and the rotation of global flows into EM equities and debt, with specific attention to various countries including Brazil, China, Korea, and Taiwan [2][3][4]. Core Insights 1. **US Flows into EM Equities** - US flows into EM equities reached $38 billion in the three months to July, marking the strongest inflow period on record. - Brazil, Hong Kong, and Taiwan saw the highest inflows, while India, ASEAN, and Mexico experienced net foreign outflows [3][4]. 2. **China's Northbound Turnover** - Chinese equities are experiencing record daily northbound turnover, running at 1.6 times the levels of October 2024. - Retail flows are not overheated, with margin financing at half of its 2015 peak and household deposits significantly exceeding A-share market cap [4][5]. 3. **Persistent Local Investor Outflows in EM** - Over the past decade, EM net portfolio flows have been dominated by local investors, with persistent outflows noted in countries like Korea, Brazil, and Chile. - Korean retail FX outflows have surged, while signs of repatriation are evident in Taiwan and Israel [5][6]. 4. **Medium-Term Outlook for EM FX** - The lack of portfolio flow repatriation and expectations of weaker EM trade growth may hinder EM FX strength. - A forecast of 75 basis points of Fed easing this year contrasts with the 45 basis points currently priced in [6][7]. 5. **Local Debt Flows** - Flows into local debt are primarily driven by higher yielders such as Brazil, Mexico, South Africa, and Hungary, with a constructive outlook on these markets [7][9]. Additional Important Insights - **Valuation Context** - Valuations in China remain undemanding, supporting a positive outlook for MSCI China in the EM context [4][5]. - **Crowding Scores** - UBS' Quant crowding scores indicate below-average positioning in several EM markets, suggesting potential for increased investment if a global equity bubble occurs [3][6]. - **Foreign Holdings of Domestic Debt** - Data shows varying levels of foreign holdings in domestic debt across EM countries, with Brazil and South Africa highlighted for their foreign debt holdings [40][42]. - **FX Deposits Trends** - FX deposits have shown resilience, with notable increases in China and Thailand, indicating a stable demand for foreign currency assets [50][56]. This summary encapsulates the key points discussed in the conference call, providing insights into the current state and outlook of emerging markets, particularly in relation to equity and debt flows.

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the Emerging Markets (EM) and specifically highlights the Foreign Institutional Investor (FII) flows in Asia, particularly Taiwan and Korea, as well as the performance of mutual funds in the region. Core Insights and Arguments - **FII Outflows**: EM Asia ex-China markets experienced significant FII selling amounting to **US$4.8 billion** week-over-week, primarily driven by Taiwan with **US$4.1 billion** and Korea with **US$0.8 billion** in outflows [1][35][40]. - **FII Inflows**: Conversely, India and Indonesia recorded minor FII inflows of **US$0.1 billion** each [1][35]. - **Global Equity Fund Flows**: Global equity funds saw inflows of **US$3 billion** week-over-week, contrasting with **US$26 billion** inflows from the previous week. Developed Markets (DM) experienced outflows of **US$2.5 billion** [5]. - **Mutual Fund Performance**: A sample of the largest **350 EM and Asian mutual funds** achieved year-to-date (YTD) returns of **17-18%**, with **65-70%** of these funds outperforming their benchmarks in August [6][10]. - **Mutual Fund Positioning**: EM funds are overweight (OW) in Indonesia and Thailand, while underweight (UW) in Taiwan. Over the past month, exposure to India and China has increased, while Taiwan's exposure has been reduced [12][14]. - **Hedge Fund Activity**: Hedge funds net bought Chinese equities at the fastest pace in **7 weeks**, indicating a shift in sentiment towards Chinese markets [6][14]. Additional Important Insights - **Southbound Flows**: Southbound flows into Hong Kong saw moderate inflows of **US$2.3 billion** this week, with a year-to-date total of **US$123 billion** [5]. - **Regional Performance**: The EM Asia region (excluding China) has seen a cumulative buying of **US$29 billion** after significant outflows of **US$98 billion** that began in July 2024 [33]. - **Non-Asia EMs**: Non-Asia emerging markets experienced selling of **US$290 million** week-over-week, led by South Africa with **US$270 million** in outflows [1][40]. - **China's Mutual Fund Allocation**: China's active allocation in mutual funds globally increased to **6.6%**, remaining underweight by **320 basis points** [17][19]. This summary encapsulates the key points from the conference call, providing insights into the current state of FII flows, mutual fund performance, and market positioning within the emerging markets landscape.