Tradeweb reported total trading volume for June 2022 of $26.1 trillion (tn). Average daily volume (ADV) for the month was $1.24tn, an increase of 18.0 percent (%) year-over-year (YoY).
For the second quarter of 2022, total trading volume was $72.6tn and ADV was a record $1.18tn, an increase of 20.4% YoY, with preliminary average variable fees per million dollars of volume traded of $2.78.
In June, Tradeweb reported record ADV in swaps/swaptions ≥ 1-year. For the second quarter of 2022, Tradeweb reported record ADV in swaps/swaptions ≥ 1-year, fully electronic U.S. High Grade credit, municipal bonds and Repurchase Agreements.
June Highlights
RATES
- U.S. government bond ADV was up 3.9% YoY to $124.1 billion (bn),2 and European government bond ADV was up 14.8% YoY to $36.9bn.
o Client engagement in U.S. government bonds across institutional and wholesale markets remained high, despite declining overall market volumes. European government bond trading continued to remain resilient amidst heightened rates market volatility.
- Mortgage ADV was down 0.1% YoY to $174.7bn.
- Declining issuance and rising yields continued to weigh on overall market activity.
- Swaps/swaptions ≥ 1-year ADV was up 22.1% YoY to $251.0bn, and total rates derivatives ADV was up 35.3% YoY to $417.0bn.
- 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. Tradeweb captured record share of SEF activity in swaps ≥ 1-year. Ongoing market focus on evolving central bank policy continued to buoy overall market activity.
CREDIT
- Fully electronic U.S. Credit ADV was down 0.3% YoY to $3.7bn and European credit ADV was down 22.3% YoY (down 10.7% YoY in EUR terms) to $1.6bn.
- U.S. and European credit volumes reflected continued client adoption across all Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade and portfolio trading. Fully electronic share of U.S. High Grade fell YoY as improving retail and strong RFQ volumes (Tradeweb AllTrade and disclosed) were primarily offset by lower industry portfolio trading volumes. Reported European volumes, buoyed by our second-best month in portfolio trading, were impacted by a strong U.S. dollar and the additional UK bank holiday at the start of the month.4 In June, Tradeweb captured fully electronic share of U.S. High Grade and U.S. High Yield TRACE of 12.4% and 5.8%, respectively.
- Credit derivatives ADV was up 120.3% YoY to $16.5bn.
- Market-wide volatility continued to boost volumes overall.
EQUITIES
- U.S. ETF ADV was up 36.1% YoY to $7.5bn and European ETF ADV was up 14.5% YoY to $2.8bn.
- Growth in global institutional client activity, up 57.0% YoY, was driven by further adoption of RFQ and sustained market volatility.
MONEY MARKETS
- Repurchase Agreement ADV was up 14.6% YoY to $419.9bn.
- Increased client adoption of Tradeweb’s electronic trading solutions drove record Global Repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility continued to weigh on the overall repo market. Retail money markets activity continues to strengthen as the rate environment improves.
Click here to access the complete report and historical data.
