Below is the monthly activity report for Tradeweb, the global operator of electronic marketplaces.
Tradeweb reported today total trading volume of $22.6 trillion (tn) for February 2022 across our electronic marketplaces for rates, credit, equities and money markets. Average daily volume (ADV) for the month was $1.17tn, an increase of 10.7 percent (%) year-over-year (YoY).
In February, Tradeweb set new ADV records in both U.S. and European government bond trading, as well as fully electronic U.S. High Grade credit and emerging market swaps.
RATES
- U.S. government bond ADV was up 30.4% YoY to $153.8 billion (bn),[1] and European government bond ADV was up 24.9% YoY to $42.0bn.
o Record 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. Record European government bond trading was driven by robust issuance and heightened rates market volatility as yields across much of the curve moved into positive territory.
- Mortgage ADV was down 20.9% YoY to $184.5bn.
o Declining issuance and uncertainty over the future of the Federal Reserve’s balance sheet continued to weigh on overall market activity.
- Swaps/swaptions ≥ 1-year ADV was up 24.0% YoY to $212.4bn, and total rates derivatives ADV was up 32.1% YoY to $368.5bn.
o Swaps/swaptions ≥ 1-year volumes were driven by robust client interest in the request-for-market (RFM) protocol, increased engagement from international clients and record trading activity in emerging markets swaps. Increased market focus on evolving central bank policy continued to buoy overall market activity.
[1] U.S. government bond volumes include wholesale U.S. Treasury volumes from the Nasdaq Fixed Income business Tradeweb acquired on June 25, 2021.
CREDIT
- Fully electronic U.S. Credit ADV was up 27.0% YoY to $4.0bn and European credit ADV was up 1.0% YoY to $2.1bn.
o Growth in U.S. and European credit was driven by increased client activity across Tradeweb AllTrade protocols, in particular request-for-quote (RFQ), as well as by further adoption of portfolio trading. Fully electronic share of U.S. High Grade and U.S. High Yield TRACE was 12.7% and 6.7%, respectively.
- Credit derivatives ADV was up 80.5% YoY to $16.8bn.
o Market-wide volatility boosted volumes overall.
EQUITIES
- U.S. ETF ADV was up 80.0% YoY to $9.4bn and European ETF ADV was up 29.6% YoY to $3.7bn.
o Record global institutional client activity benefited from further adoption and elevated market volatility.
MONEY MARKETS
- Repurchase Agreement ADV was up 2.6% YoY to $352.6bn.
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 pressured by the low interest rate environment.
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[1] U.S. government bond volumes include wholesale U.S. Treasury volumes from the Nasdaq Fixed Income business Tradeweb acquired on June 25, 2021.
