- March 2024 ADV up 19.9% YoY
- First Quarter 2024 ADV up 39.1% YoY
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 March 2024 of $36.2 trillion (tn)[1]. Average daily volume (ADV) for the month was $1.81tn, an increase of 19.9 percent (%) year-over-year (YoY). For the first quarter of 2024, total trading volume was $116.9tn and ADV was a record $1.90tn, an increase of 39.1% YoY, with preliminary average variable fees per million dollars of volume traded of $2.56.[2]
Tradeweb CEO Billy Hult said: “Our strong volumes across asset classes in March 2024 punctuated a record quarter for Tradeweb. Market volatility remained front and center for our clients, resulting in strong volumes and continued market share gains across our global asset classes. In the first quarter of 2024, in addition to record average daily volumes, we reported a record 17.6% share of fully electronic U.S. High-Grade TRACE, demonstrating the momentum we’ve built and sustained in credit. We are also encouraged to see our recent r8fin acquisition already making positive contributions to our Treasury volumes.”
In March 2024, Tradeweb records included:
- ADV in European credit
- ADV in global repurchase agreements
For the first quarter of 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in European government bonds
- ADV in swaps/swaptions ≥ 1-year
- Share of and ADV in fully electronic U.S. High Grade TRACE
- ADV in European credit
- ADV in U.S. ETFs
- ADV in equity convertibles/swaps/options
- ADV in global repurchase agreements
March 2024 Highlights
Rates
- U.S. government bond ADV was up 27.2% YoY to $191.8 billion (bn). European government bond ADV was up 17.1% YoY to $49.7bn.
- The institutional business saw strong volumes driven by increased adoption across a wide of range of protocols. The addition of r8fin contributed positively to wholesale volumes while retail volumes remained strong.
- European government bond volumes continued to be strong in March, with strong growth in average daily trading volume in the institutional EUR and UK Gilts businesses. Primary market issuance remained robust across Europe and the UK, which generated heavy trading activity from all client types using a wide range of trading protocols.
- Mortgage ADV was up 22.5% YoY to $203.9bn.
- To-Be-Announced (TBA) platform volumes were up YoY, driven by increased TBA roll volume and sustained elevated activity from the hedge fund community. Specified pool activity was up YoY supported by increases in client adoption and strong pool buying activity on the platform.
- Swaps/swaptions ≥ 1-year ADV was up 15.2% YoY to $409.0bn and total rates derivatives ADV was up 10.8% YoY to $675.0bn.
- Strong volume in swaps/swaptions ≥ 1-year was driven by market share gains, ongoing institutional client activity in response to global central bank policy decisions, as well as an 8% YoY increase in compression activity, which carries a lower fee per million. First quarter compression activity was lower 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 69.1% YoY to $7.5bn and European credit ADV was up 52.7% YoY to $2.8bn.
- 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 18% share of fully electronic U.S. High Grade TRACE, and 6.3% share of fully electronic U.S. High Yield TRACE. Record European credit volumes were supported by continued growth in client use of Tradeweb Automated Intelligent Execution (AiEX) and portfolio trading.
- Municipal bonds ADV was up 13.9% YoY to $325 million (mm).
- Volumes outpaced the broader market, which was down more than 5%[3] Both retail and institutional activity were healthy amid increased issuance and improved fund flows.
- Credit derivatives ADV was down 10.0% YoY to $35.5bn.
- 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 23.4% YoY to $10.5bn and European ETF ADV was up 8.2% YoY to $3.0bn.
- U.S. and European institutional ETF volumes continued to grow as more clients embraced Tradeweb’s electronic RFQ protocol. U.S. wholesale ETF volumes also continued to move higher as the customer base expanded.
Money Markets
- Repurchase agreement ADV was up 29.0% YoY to $576.3bn.
- 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.
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.
