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 July 2023 of $25.6 trillion (tn). Average daily volume (ADV) for the month was $1.27tn, an increase of 16.3 percent (%) year-over-year (YoY).
In July 2023, Tradeweb records included:
- Share of TRACE in fully electronic U.S. High Grade credit
- ADV in global portfolio trading
- ADV in Chinese bonds
- ADV in global Repurchase agreements
July 2023 Highlights
Rates
- U.S. government bond ADV was up 19.1% YoY to $139.9 billion (bn). European government bond ADV was up 17.2% YoY to $36.9bn.
- 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.
- Mortgage ADV was down 1.1% YoY to $167.4bn.
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- Despite a spike in rates market volatility at the beginning of the month, overall trading activity remained subdued while client engagement in specified pool trading remained strong.
- Swaps/swaptions ≥ 1-year ADV was up 36.9% YoY to $253.1bn and total rates derivatives ADV was up 15.2% YoY to $361.5bn.
- Higher volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and an 84% YoY increase in compression activity (relative compression mix in July fell as compared to second quarter 2023). 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.
Credit
- Fully electronic U.S. credit ADV was up 34.8% YoY to $4.8bn and European credit ADV was up 38.6% YoY to $1.9bn.
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- Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and record portfolio trading. Tradeweb captured a record 16.4% share of fully electronic U.S. High Grade TRACE, and 7.1% share of fully electronic U.S. High Yield TRACE. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
- Municipal bonds ADV was down 10.5% YoY to $298 million (mm).
- While institutional and retail client activity remained healthy, Tradeweb municipal volumes reflected a broader decline in municipal market volumes given relative yield dynamics and limited new issuance.
- Credit derivatives ADV was down 38.9% YoY to $7.5bn.
- Significant tightening of credit spreads led to a steep decline in overall broader swap execution facility (SEF) market activity.
Equities
- U.S. ETF ADV was up 33.9% YoY to $8.1bn and European ETF ADV was down 27.9% YoY to $2.1bn.
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- U.S. ETF growth was driven by strong institutional and wholesale activity. European ETF volumes reflected declining overall market volumes.
Money Markets
- Repurchase agreement ADV was up 24.9% YoY to $496.3bn.
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- Further client adoption of Tradeweb’s electronic trading solutions drove record 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.
