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Below is the monthly activity report for Tradeweb, the global operator of electronic marketplaces.
Today, it reported total trading volume for September 2021 of $21.7 trillion (tn) across our electronic marketplaces for rates, credit, equities and money markets. Average daily volume (ADV) for the month was $1.02tn, an increase of 17.4 percent (%) year over year (YoY). For the third quarter of 2021, total trading volume was $62.1tn and ADV was $964.5 billion (bn), an increase of 23.6% YoY, with preliminary average variable fees per million dollars of volume traded of $2.70.
Lee Olesky, Tradeweb CEO, said: “Tradeweb is now the leading marketplace for U.S. Treasuries, with record monthly activity in our institutional and wholesale client sectors. In the third quarter, we continued to capture more market share in U.S. credit led by portfolio trading and electronic RFQ, as innovation and momentum helped drive volume gains across our markets."
In September, Tradeweb facilitated a record $887 million per day in U.S. High Yield credit. Tradeweb also set ADV records in both U.S. government bonds and European government bonds. In addition, client adoption of the request-for-market (RFM) protocol drove record SEF share for swaps ≥ 1-year.
For the third quarter of 2021, Tradeweb set new records in TRACE market share in both U.S. High Grade and U.S. High Yield, capturing a quarterly record 12.6% and 6.2%, respectively, for fully electronic trading. U.S. government bond ADV was also a record.
September Highlights
RATES
∙ U.S. government bond ADV was up 49.3% YoY to $134.3bn3, and European government bond ADV was up 27.2% YoY to $34.4bn.
o Record activity in U.S. government bonds was driven by a combination of factors: record institutional activity; the further adoption of innovative protocols including streaming and sessions-based trading; strong quarter-end activity; and the addition of the Nasdaq Fixed Income business. Record activity in European government bond trading was led by very strong activity in UK Gilts. Steady global government bond issuance, along with recent rising market volatility, remained supportive of trading.
∙ Mortgage ADV was down 8.7% YoY to $179.6bn.
o Declining issuance and record home price appreciation weighed on overall market activity.
∙ Swaps/swaptions ≥ 1-year ADV was up 18.7% YoY to $187.8bn, and total rates derivatives ADV was up 15.8% YoY to $276.7bn.
o Swaps/swaptions ≥ 1-year volumes were driven by robust client interest in the request-for-market (RFM) protocol and continued engagement from international clients, resulting in record SEF share for these tenors. Emerging markets exhibited strong growth due to the continued adoption of electronic trading.
CREDIT
∙ U.S. Credit ADV was up 32.0% YoY to $5.8bn and European credit ADV was up 23.2% YoY to $2.0bn.
o Exceptionally strong growth in U.S. and European credit was driven by client adoption of the request-for-quote (RFQ) protocol and continued growth of portfolio trading. U.S. High Grade TRACE market share was 21.0%, of which 11.9% was traded fully electronically. U.S. High Yield ADV was a record on the platform with TRACE market share of 9.4% (6.1% fully electronic).
∙ Credit derivatives ADV was up 6.9% YoY to $28.3bn.
o Semi-annual rolling activity as well as continued bouts of volatility boosted market activity generally.
EQUITIES
∙ U.S. ETF ADV was up 6.1% YoY to $5.7bn and European ETF ADV was up 35.3% YoY to $2.2bn.
o Continued growth of institutional clients drove volumes in U.S. and European markets. Elevated market volatility particularly towards month-end was generally supportive of trading activity.
MONEY MARKETS
∙ Repurchase Agreement ADV was up 27.8% YoY to $326.8bn.
o The sustained addition of new clients on the platform supported strong growth in Global Repo activity. Retail money markets activity remained pressured by the low interest rate environment.
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