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Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for the month of February 2024 of $37.9 trillion (tn)[1]. Average daily volume (ADV) for the month was $1.87tn, an increase of 31.1 percent (%) year-over-year (YoY).
In February 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in European government bonds
- ADV in rates futures
- ADV in fully electronic U.S. High Grade credit
- ADV in equity convertibles/swaps/options
- ADV in global repurchase agreements
February 2024 Highlights
Rates
- U.S. government bond ADV was up 44.0% YoY to $207.8 billion (bn). European government bond ADV was up 17.9% YoY to $51.0bn.
- U.S. government bond volumes were supported by growth across all client sectors, leading to record volume on the institutional platform for the second consecutive month. Increased adoption across a wide range of trading protocols, along with sustained rates market volatility, contributed to the increase in volume. The addition of r8fin also contributed positively to wholesale volumes. Higher interest rates continued to drive trading in the retail market on the short end of the curve. European government bond volumes continued to be strong, particularly in UK Gilts, where there was continued flow and growth in our dealer-to-client platform. We also saw an abundance of new issuance across Europe and the UK in the primary market, along with increased client activity.
- Mortgage ADV was up 12.2% YoY to $188.1bn.
- Platform trading activity remained healthy while shifting rate-cut bets led agency mortgages to underperform compared to other fixed-income asset classes. Specified pool trading volumes set a record high, up 170% YoY.
- Swaps/swaptions ≥ 1-year ADV was up 65.1% YoY to $502.3bn and total rates derivatives ADV was up 32.1% YoY to $789.7bn.
- Strong volume in swaps/swaptions ≥ 1-year was driven by ongoing institutional client activity in response to current global central bank policy decisions, as well as an 88% YoY increase in compression activity, which carries a lower fee per million. Quarter-to-date compression activity is running higher than 4Q23. Clients continued to utilize the request-for-market (RFM) protocol for larger risk transfers, while inflation and emerging markets swap growth remained strong.
Credit
- Fully electronic U.S. credit ADV was up 49.9% YoY to $7.7bn and European credit ADV was up 4.7% YoY to $2.3bn.
- Strong U.S. credit volumes were driven by increased client adoption of Tradeweb protocols, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade®. Tradeweb captured 17.5% share of fully electronic U.S. High Grade TRACE, and 6.6% share of fully electronic U.S. High Yield TRACE. Strong European credit volumes were supported by continued growth in client use of Tradeweb Automated Intelligent Execution (AiEX) and portfolio trading.
- Municipal bonds ADV was down 4.4% YoY to $322 million (mm).
- Volumes slightly outperformed the broader market, which was down more than 5% YoY. Retail activity was more resilient than institutional flows, as Muni/U.S. Treasury ratios remained unattractive.
- Credit derivatives ADV was down 23.1% YoY to $8.1bn.
- Tight credit spreads and low market volatility led to subdued swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.
Equities
- U.S. ETF ADV was up 20.6% YoY to $8.7bn and European ETF ADV was up 7.0% YoY to $3.0bn.
- U.S. and European ETF growth was driven by continued institutional client adoption of ETF trading via Tradeweb’s electronic RFQ as well as an uptick in the use of our ETF portfolio trading functionality.
Money Markets
- Repurchase agreement ADV was up 33.8% YoY to $550.3bn.
- Increased client engagement with Tradeweb’s electronic repo trading protocols drove record global repo activity. The combination of quantitative tightening, heightened collateral supply, and current rates market activity shifted more balances from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity was strong as interest rates remained elevated and market expectations for rate cuts moved further into 2024.
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.
