Tradeweb Reports August 2023 Total Trading Volume of $33.0 Trillion and Average Daily Volume of $1.44 Trillion
- Total trading volume increased significantly YoY
- ADV also saw a substantial YoY increase
- None.
August 2023 ADV up
In August 2023, Tradeweb records included:
-
Share of TRACE in fully electronic
U.S. High Grade credit -
Share of TRACE in fully electronic
U.S. High Yield credit - ADV in swaps/swaptions ≥ 1-year
- ADV in Chinese bonds
Next month we will release our 3Q23 fee per million calculation in conjunction with the September Monthly Activity Report. We will be moving China Bonds fee per million from Cash Credit to Credit Derivatives, China Bonds and
August 2023 Highlights
RATES
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U.S. government bond ADV was up14.9% YoY to (bn). European government bond ADV was up$142.7 billion 19.6% YoY to .$32.9b n-
Growth was driven by strong activity across all client sectors. Higher interest rates continued to drive trading in the retail market.
U.S. and European government bond volumes were supported by sustained rates market volatility.
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Growth was driven by strong activity across all client sectors. Higher interest rates continued to drive trading in the retail market.
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Mortgage ADV was up
11.0% YoY to .$174.4b n- Overall trading activity was supported by relative value trading, despite continued sluggish origination. Client engagement in specified pool trading remained strong.
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Swaps/swaptions ≥ 1-year ADV was up
125.4% YoY to and total rates derivatives ADV was up$381.8b n89.0% YoY to .$535.9b n-
Record volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a
195% YoY increase in compression activity. Quarter-to-date compression percentage is running higher than 2Q23. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Strong volumes continued to be buoyed by activity in emerging markets swaps, global inflation swaps and the request-for-market (RFM) protocol.
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Record volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a
CREDIT
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Fully electronic
U.S. credit ADV was up38.9% YoY to and European credit ADV was up$4.8b n48.5% YoY to .$1.6b n-
Strong
U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading. Tradeweb captured a record17.3% share of fully electronicU.S. High Grade TRACE, and a record8.5% share of fully electronicU.S. High Yield TRACE. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
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Strong
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Municipal bonds ADV remained relatively flat YoY to
(mm).$345 million - Municipal volumes reflected healthy institutional and retail client activity.
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Credit derivatives ADV was down
30.5% YoY to .$7.9b n- Continued tightening of credit spreads led to a decline in overall broader swap execution facility (SEF) market activity.
EQUITIES
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U.S. ETF ADV was up28.0% YoY to and European ETF ADV was down$6.8b n11.9% YoY to .$1.9b n-
Elevated volatility earlier in the month supported strong
U.S. ETF wholesale activity, while institutional activity was down. European ETF volumes reflected declining overall market volumes.
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Elevated volatility earlier in the month supported strong
MONEY MARKETS
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Repurchase agreement ADV was up
33.1% YoY to .$491.9b n- Further client adoption of Tradeweb’s electronic trading solutions drove global repo activity. Current U.S. market conditions shifted demand from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity continued to be strong as interest rates remained elevated.
Please refer to the report posted to https://www.tradeweb.com/newsroom/monthly-activity-reports/ for complete information and data related to our historical monthly, quarterly and yearly ADV and total trading volume across asset classes.
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
Basis of Presentation
All reported amounts are presented in
Market and Industry Data
This press release and the complete report include estimates regarding market and industry data that we prepared based on our management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. In particular, preliminary average variable fees per million dollars of volume traded are subject to the completion of management’s final review and our other financial closing procedures and therefore are subject to change. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future performance and our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of results or developments in future periods.
Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230905055018/en/
Media contact:
Daniel Noonan, Tradeweb
+1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor contacts:
Ashley Serrao, Tradeweb
+1 646 430 6027
Ashley.Serrao@Tradeweb.com
Sameer Murukutla, Tradeweb
+1 646 767 4864
Sameer.Murukutla@Tradeweb.com
Source: Tradeweb Markets Inc.