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- U.S. High Grade sets monthly and quarterly records for fully electronic ADV and TRACE share
- Third quarter ADV up 14.0% YoY
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 September 2022 of $25.1 trillion (tn). Average daily volume (ADV) for the month was $1.20tn[1], an increase of 17.2 percent (%) year-over-year (YoY). For the third quarter of 2022, total trading volume was $70.6tn and ADV was $1.10tn, an increase of 14.0% YoY, with preliminary average variable fees per million dollars of volume traded of $2.73.[2]
In September 2022, Tradeweb records included:
- ADV in fully electronic U.S. High Grade credit
- Share of fully electronic U.S. High Grade TRACE
- ADV in swaps/swaptions ≥ 1-year
- ADV in European government bonds in EUR terms
- ADV in retail money markets
For the third quarter of 2022, Tradeweb records included:
- ADV in fully electronic U.S. High Grade credit
- Share of fully electronic U.S. High Grade TRACE
- ADV in equity convertibles/swaps/options
- ADV in institutional municipal bonds
Tradeweb's diversified offering across products, geographies and client sectors supported sustained growth during the third quarter, despite lighter volumes in July. We continued to help our clients navigate a complex macroeconomic backdrop, including evolving central bank policy, sustained elevated volatility, economic concerns and a stronger dollar.
September Highlights
Rates
- U.S. government bond ADV was down 3.8% YoY to $129.3 billion (bn), and European government bond ADV was up 20.8% YoY (up 40.4% YoY in EUR terms) to $41.6bn.
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- U.S. government bond activity across institutional and wholesale markets was lower, while higher interest rates drove record volumes in the retail market. Record European government bond trading was driven by heightened rates market volatility and record activity in UK Gilts.
- Mortgage ADV was down 9.5% YoY to $162.1bn.
- Rising mortgage rates, which reached their highest levels in over a decade in September, and inflationary concerns weighed on issuance and trading activity in the sector.
- Swaps/swaptions ≥ 1-year ADV was up 37.4% YoY to $257.9bn, and total rates derivatives ADV was up 42.0% YoY to $393.0bn.
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- Record swaps/swaptions ≥ 1-year volumes were supported by record trading in global inflation swaps, strong activity in emerging markets swaps, record client adoption of the request-for-market (RFM) protocol and strong engagement from international clients. Tradeweb captured record TW SEF share for interest rate swaps ≥ 1-year.[3] Rapidly evolving central bank policy and heightened volatility continued to buoy overall market activity.
Credit
- Fully electronic U.S. Credit ADV was up 25.6% YoY to $4.2bn and European credit ADV was down 15.3% YoY (down 1.6% YoY in EUR terms) to $1.7bn.
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- U.S. and European credit volumes reflected continued client adoption across Tradeweb protocols. Record electronic U.S. High Grade activity was buoyed by record volume in both portfolio trading and Tradeweb AllTrade’s all-to-all offering. U.S. High Yield and European credit reported strong volumes into the end of the month following a lighter start of the month. Tradeweb captured a record 14.5% share of fully electronic U.S. High Grade TRACE and 5.7% share of fully electronic U.S. High Yield TRACE.
- Municipal bonds ADV was up 121.4% YoY to $385 million (mm).
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- Municipal volumes remained robust, reflecting our second-highest month in institutional trading activity and continued demand from Tradeweb’s retail clients. Market volatility and sharply rising interest rates continued to boost volumes overall.
- Credit derivatives ADV was up 30.9% YoY to $37.0bn.
- Semiannual rolling activity as well as market-wide volatility continued to boost volumes overall.
Equities
- U.S. ETF ADV was up 33.5% YoY to $7.6bn and European ETF ADV was up 5.8% YoY (up 22.9% YoY in EUR terms) to $2.4bn.
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- An increase of 52.7% YoY in global institutional client activity was driven by further adoption of RFQ and sustained market volatility.
Money Markets
- Repurchase Agreement ADV was up 16.6% YoY to $381.2bn.
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- Continued client adoption of Tradeweb’s electronic trading solutions drove Global Repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity reached a record high as the rates environment continued to improve.
For the final numbers and complete report go to https://www.tradeweb.com/newsroom/monthly-activity-reports/.
