Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported record total trading volume for the month of August 2024 of $50.9 trillion (tn)[1]. Average daily volume (ADV) for the month was a record $2.21tn, an increase of 53.9 percent (%) year-over-year (YoY).[2] Excluding the impact of the ICD acquisition, which closed on August 1, 2024, total ADV for the month of August was up 35.7% YoY.
Tradeweb CEO Billy Hult said: "Our record volumes in August highlight the strength of Tradeweb’s platform, which now includes ICD. The significant growth across our key markets, particularly in U.S. government bonds and global repurchase agreements, underscores the continued trust our clients place in us to deliver solutions that enhance transparency, efficiency, and innovation in our markets.”
In August 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in global repurchase agreements
August 2024 Highlights
rates
- U.S. government bond ADV was up 59.9% YoY to $228.2 billion (bn). European government bond ADV was up 11.8% YoY to $36.8bn.
- Record U.S. government bond volumes were supported by record ADV across our institutional and wholesale client sectors and strong ADV growth in retail. Increased adoption across a range of protocols and favorable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes. Despite subdued summer issuance, European government bond volumes increased YoY, led by strong growth in UK Gilts ahead of the new issuance announced for early September.
- Mortgage ADV was up 32.3% YoY to $230.7bn.
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- August To-Be-Announced (TBA) activity was driven by robust roll trading activity and significant participation from fast-money accounts. Increased client adoption of specified pool trading led to record volumes for the month.
- Swaps/swaptions ≥ 1-year ADV was up 5.4% YoY to $402.3bn and total rates derivatives ADV was up 35.7% YoY to $727.4bn.
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- Strong volume in swaps/swaptions ≥ 1-year was driven by ongoing institutional client activity and strong tailwinds from global political uncertainties. Compression activity, which carries a lower fee per million, declined 22% YoY. Central banks continued to contribute to increased volatility due to active discussions on rate movements. Clients continued to utilize the request-for-market (RFM) protocol for risk transfers. Emerging markets swaps growth remained strong. QTD compression activity was lower than 2Q24.
credit
- Fully electronic U.S. credit ADV was up 33.2% YoY to $6.4bn and European credit ADV was down 8.4% YoY to $1.4bn.
- U.S. credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade®. Tradeweb captured 16.9% and 7.0% of fully electronic U.S high grade and U.S. high yield TRACE, respectively, as measured by Tradeweb. European credit volumes were driven by client activity across a wide range of protocols in August, including Tradeweb AllTrade® and our unique dealer selection tool (SNAP IOI), which continued to see increased client engagement.
- Municipal bonds ADV was up 13.4% YoY to $392 million (mm).
- Volume growth outpaced the broader market, which was up approximately 5.6% YoY, as Tradeweb’s volumes reported double-digit YoY growth amidst record August issuance.
- Credit derivatives ADV was up 135.6% YoY to $18.6bn.
- Increased hedge fund and systematic account activity, along with heightened credit volatility, led to increased swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.
equities
- U.S. ETF ADV was up 6.8% YoY to $7.2bn and European ETF ADV was up 43.4% YoY to $2.7bn.
- Both U.S. and European institutional ETF volumes were up over 40% YoY, driven by a large number of clients looking to reposition.
money markets
- Repo ADV was up 30.8% YoY to $643.5bn.
- Increased client activity on Tradeweb’s electronic repo trading platform drove record global repo activity. The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Fed’s reverse repo facility to money markets. Retail money markets activity remained strong, as investors prepared for anticipated rate cuts.
- Other Money Markets ADV was up YoY to $282.3bn.
- Other money markets volume growth was driven by the inclusion of ICD volumes in August 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.
[1] Tradeweb acquired Yieldbroker, r8fin and ICD on August 31, 2023, January 19, 2024 and August 1, 2024, respectively. Total volume reported includes volumes from each acquired business subsequent to the date of the applicable acquisition.
[2] Beginning on August 1, 2024, volumes for other money markets includes cash invested in funds through the ICD Portal, with volumes determined based on the sum of the daily dollar amount of cash balances invested in the funds on each date within the respective month, including any cash amounts invested by Tradeweb via the ICD Portal. The ADV for volumes relating to ICD represents the average daily balance (ADB) of cash invested through the ICD Portal, averaged over each calendar day in the period.
