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In the latest update, Tradeweb has reported total trading volume for November 2021 that was $24.2 trillion (tn). Average daily volume (ADV) for the month was $1.18tn, an increase of 22.6 percent (%) year-over-year (YoY).
Lee Olesky, Tradeweb CEO, said: “November was Tradeweb’s second-busiest month ever, extending our run of more than 12 consecutive months reporting year-over-year ADV growth. What is so encouraging about this momentum is the fact that much of our growth is coming from tools and protocols that did not exist five years ago. With innovations like portfolio trading for credit, direct streams for U.S. Treasuries, and RFM trading for swaps, we are building the future of electronic markets in collaboration with our clients."
In November, Tradeweb facilitated record activity in swaps/swaptions ≥ 1-year. Additionally, Tradeweb set new records in TRACE market share for U.S. High Grade, capturing 23.9% with a record 14.3% transacted fully electronically.
RATES
- U.S. government bond ADV was up 44.3% YoY to $144.5 billion (bn)1, and European government bond ADV was up 28.5% YoY to $34.6bn.
- Growth in U.S. government bonds was driven by strong activity across institutional and wholesale markets, continued momentum in streaming protocols and the addition of the Nasdaq Fixed Income business. Activity in European government bond trading was boosted by record volumes in Euro-zone bonds. Steady global government bond issuance, along with rising rates market volatility, remained supportive of trading overall.
- Mortgage ADV was down 21.1% YoY to $178.6bn.
- Declining issuance and tight mortgage spreads weighed on overall market activity.
- Swaps/swaptions ≥ 1-year ADV was up 44.9% YoY to $233.3bn, and total rates derivatives ADV was up 76.7% YoY to $396.7bn.
- Record swaps/swaptions ≥ 1-year volumes were driven by robust client interest in the request-for-market (RFM) protocol, continued engagement from international clients and increased adoption of risk-free rate (RFR) swaps, as well as further growth in emerging markets. Increased market focus on evolving central bank policy continued to buoy trading in swaps/swaptions < 1-year.
CREDIT
- U.S. Credit ADV was up 18.1% YoY to $6.6bn and European credit ADV was up 1.6% YoY to $1.8bn.
- Continued growth in U.S. and European credit was driven by record activity in portfolio trading as well as continued client adoption of the request-for-quote (RFQ) protocol and session-based trading. U.S. High Grade TRACE market share was a record 23.9%, of which a record 14.3% was transacted fully electronically, and U.S. High Yield TRACE market share was 10.6%, of which 7.0% was transacted fully electronically.
- Credit derivatives ADV was down 18.0% YoY to $9.8bn.
- Subdued credit market volatility earlier in the month weighed on volumes.
EQUITIES
- U.S. ETF ADV was up 15.9% YoY to $5.5bn and European ETF ADV was down 8.3% YoY to $2.5bn.
- Continued growth in activity by institutional clients contributed to higher volumes in the U.S. Lower overall market activity weighed on European ETF volumes.
MONEY MARKETS
- Repurchase Agreement ADV was up 11.1% YoY to $367.0bn.
- The addition of new clients on the platform continued to support growth in Global Repo activity. Retail money markets activity remained pressured by the low interest rate environment.
Click here to download November's report.
