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 November 2023 of $38.2 trillion (tn). Average daily volume (ADV) for the month was a record $1.80tn, an increase of 59.2 percent (%) year-over-year (YoY).
In November 2023, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in European government bonds
- ADV in swaps/swaptions ≥ 1-year
- ADV in fully electronic U.S. High Grade credit
- ADV European credit
- ADV in equity convertibles/swaps/options
- ADV global repurchase agreements
November 2023 Highlights
Rates
- U.S. government bond ADV was up 19.5% YoY to $163.7 billion (bn). European government bond ADV was up 30.5% YoY to $44.8bn.
- Record U.S. government bond volumes were supported by growth across all client sectors, increased adoption across a diverse set of trading protocols on the institutional platform and sustained rates market volatility. Higher interest rates continued to drive trading in the retail market. Record European government bond volumes were supported by sustained rates market volatility and strong volumes by hedge fund accounts.
- Mortgage ADV was up 16.7% YoY to $188.3bn.
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- Strong To-Be-Announced (TBA) volumes were driven by increased participation from hedge fund accounts as well as elevated roll activity. Specified pool activity increased >200% YoY with an uptick in origination trading on the platform.
- Swaps/swaptions ≥ 1-year ADV was up 178.4% YoY to $580.8bn and total rates derivatives ADV was up 132.6% YoY to $795.1bn.
- Record volume in swaps/swaptions ≥ 1-year was driven in part by increased client activity and a 242% YoY increase in compression activity, which carries a lower fee per million. Quarter-to-date compression activity is running higher than 3Q23. Robust volumes were also driven by strong activity in global inflation swaps, the request-for-market (RFM) protocol and emerging market swaps.
Credit
- Fully electronic U.S. credit ADV was up 32.0% YoY to $6.1bn and European credit ADV was up 29.7% YoY to $2.3bn.
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- Strong U.S. credit volumes, most notably record ADV in fully electronic U.S. High Grade activity, reflected continued client adoption in Tradeweb protocols, including request-for-quote (RFQ), as well as record adoption in Tradeweb AllTrade® and portfolio trading. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 16.7%, and 7.0%, respectively. Record European credit volumes were supported by strong activity in portfolio trading and Tradeweb Automated Intelligent Execution (AiEX).
- Municipal bonds ADV was down 0.2% YoY to $475 million (mm).
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- While retail municipal bond activity remained somewhat muted against a broader backdrop of lower yields, a robust tax lost harvesting month by institutional asset managers kept flows in this part of the market significantly more positive.
- Credit derivatives ADV was down 7.8% YoY to $9.8bn.
- Tighter credit spreads led to lower overall swap execution facility (SEF) market activity.
Equities
- U.S. ETF ADV was up 4.5% YoY to $7.0bn and European ETF ADV was up 10.0% YoY to $2.6bn.
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- Institutional client engagement in U.S. ETFs remained robust, with a 4.5% increase in platform volumes YoY. European ETFs were up as broader market volumes remained relatively flat.
Money Markets
- Repurchase agreement ADV was up 35.2% YoY to $534.7bn.
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- Increased 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.
