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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 October 2023 of $37.2 trillion (tn). Average daily volume (ADV) for the month was a record $1.75tn, an increase of 66.3 percent (%) year-over-year (YoY).
In October 2023[1], Tradeweb records included:
- ADV in U.S. government bonds
- ADV in swaps/swaptions ≥ 1-year
- ADV in fully electronic U.S. High Grade credit
- ADV in equity convertibles/swaps/options
October 2023 Highlights
Rates
- U.S. government bond ADV was up 27.7% YoY to $163.7 billion (bn). European government bond ADV was up 12.0% YoY to $42.3bn.
- Record U.S. government bond volumes were supported by growth 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 up 13.4% YoY to $193.8bn.
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- Strong volumes were driven by increased participation from fast money accounts as well as elevated roll activity. Record specified pool volumes were driven by robust client engagement, continuing to drive strong YoY growth.
- Swaps/swaptions ≥ 1-year ADV was up 121.1% YoY to $463.4bn and total rates derivatives ADV was up 174.0% YoY to $749.6bn.
- Record volume in swaps/swaptions ≥ 1-year was driven in part by increased client activity and a 182% YoY increase in lower fee per million compression activity. Quarter-to-date compression activity is running higher than 3Q23. Robust volumes were also driven by record activity in global inflation swaps as well as strong activity in the request-for-market (RFM) protocol and emerging market swaps.
Credit
- Fully electronic U.S. credit ADV was up 24.9% YoY to $5.6bn and European credit ADV was up 27.4% YoY to $2.1bn.
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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 16.8%, and 6.7%, respectively. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
- Municipal bonds ADV was up 2.1% YoY to $472 million (mm).
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- Municipal volumes reflected healthy institutional and retail client activity, as broader municipal bond market volumes declined 1.8%[2].
- Credit derivatives ADV was down 24.0% YoY to $12.1bn.
- Tighter credit spreads led to a decline in overall swap execution facility (SEF) market activity.
Equities
- U.S. ETF ADV was down 6.5% YoY to $7.2bn and European ETF ADV was up 24.1% YoY to $2.6bn.
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- Institutional client engagement in U.S. ETFs remained robust, with a 10% increase in platform volumes YoY. European ETFs were up as broader market volumes remained relatively flat.
Money Markets
- Repurchase agreement ADV was up 41.2% YoY to $527.2bn.
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- 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.
