Tradeweb reported record total trading volume for March 2022 of $28.2 trillion (tn). Average daily volume (ADV) for the month was $1.23tn, an increase of 14.0 percent (%) year-over-year (YoY). For the first quarter of 2022, total trading volume was a record $73.1tn and ADV was a record $1.17tn, an increase of 10.9% YoY, with preliminary average variable fees per million dollars of volume traded of $2.93.[1]
In March, Tradeweb reported record ADV in swaps/swaptions ≥ 1-year. For the first quarter of 2022, Tradeweb reported record activity across most product groups, including: U.S. and European government bonds; swaps/swaptions ≥ 1-year; fully electronic U.S. High Grade and fully electronic U.S. High Yield credit; European credit; U.S. and European ETFs; and Repurchase agreements.
March Highlights
Rates
- U.S. government bond ADV was up 30.1% YoY to $148.6 billion (bn),[2] and European government bond ADV was up 22.4% YoY to $37.9bn.
o Trading in U.S. government bonds was supported by strong client activity in institutional and wholesale markets; the continued momentum of session-based trading and streaming protocols; and the addition of the Nasdaq Fixed Income business. Global government bond trading remained strong amidst heightened rates market volatility as yields continued to rise across developed markets.
- Mortgage ADV was down 7.9% YoY to $185.9bn.
o Declining issuance and rising yields continued to weigh on overall market activity.
- Swaps/swaptions ≥ 1-year ADV was up 12.4% YoY to $249.6bn, and total rates derivatives ADV was up 27.3% YoY to $401.5bn.
o Record swaps/swaptions ≥ 1-year volumes were driven by robust client interest in the request-for-market (RFM) protocol, increased engagement from international clients and strong trading activity in emerging markets swaps. Increased market focus on evolving central bank policy continued to buoy overall market activity.
Credit
- Fully electronic U.S. Credit ADV was up 5.7% YoY to $3.8bn and European credit ADV was down 0.7% YoY to $2.1bn.
o U.S. and European credit volumes reflected continued client adoption across all Tradeweb protocols, including Tradeweb AllTrade’s request-for-quote (RFQ) and portfolio trading, as declining overall market activity YoY weighed on volumes. In March, Tradeweb outperformed market trends with fully electronic share of U.S. High Grade and U.S. High Yield TRACE capturing 11.1% and 6.6%, respectively, up YoY. Additionally, further client adoption of Tradeweb’s Multi-Client Net Spotting tool boosted electronically processed activity.
- Credit derivatives ADV was up 21.5% YoY to $35.3bn.
o Market-wide volatility boosted volumes overall, while semiannual rolling activity drove month-over-month growth.
Equities
- U.S. ETF ADV was up 17.0% YoY to $8.3bn and European ETF ADV was up 24.2% YoY to $3.8bn.
o Record U.S. institutional client activity was driven by further adoption of RFQ. Elevated market volatility boosted volumes in both the U.S. and Europe.
Money Markets
- Repurchase Agreement ADV was up 8.1% YoY to $361.5bn.
o The addition of new clients on the platform continued to support growth in Global Repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility weighed on the overall repo market. Retail money markets activity remained measured in the low interest rate environment, despite its recent pickup.
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