- Average daily volume (ADV) for the month was $972.2 billion (bn), an increase of 34.2 percent (%) year over year (YoY). Average daily trades for the month totaled 58,916.
- In U.S. Credit, Tradeweb captured a record 9.9% share of High Yield TRACE, of which 6.4% was fully electronic. Activity was driven by record share in portfolio trading and Tradeweb AllTrade, with strong growth in both sessions-based and RFQ trading.
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We reported today total trading volume for July 2021 of $20.6 trillion (tn) across rates, credit, equities and money markets. Average daily volume (ADV) for the month was $972.2 billion (bn), an increase of 34.2 percent (%) year over year (YoY).
Lee Olesky, Tradeweb CEO, said: “Tradeweb’s diversified growth continued in July, with strong year-over-year volume gains in government bonds, swaps, credit and repos. Our credit volumes were higher in the U.S. and Europe, and in U.S. High Yield we captured record market share as more clients were active in anonymous and portfolio trading.”
In U.S. Credit, Tradeweb captured a record 9.9% share of High Yield TRACE, of which 6.4% was fully electronic. Activity was driven by record share in portfolio trading and Tradeweb AllTrade, with strong growth in both sessions-based and RFQ trading.
RATES
- U.S. government bond ADV was up 38.7% YoY to $116.1bn[1], and European government bond ADV was up 25.0% YoY to $29.5bn.
- Client use of innovative protocols continued apace, as client adoption of streaming liquidity and sessions-based trading increased. Additionally, July was the first full month of reporting to include Tradeweb’s newly acquired CLOB. Steady global government bond issuance, along with recent rising market volatility, remained supportive of trading generally.
- Mortgage ADV was down 0.4% YoY to $190.0bn.
- A notable decline in issuance and discussions of the eventual tapering of Fed open market purchases weighed on overall market activity. Client activity in specified pools on the institutional platform continued to show strong growth.
- Swaps/swaptions ≥ 1-year ADV was up 72.4% YoY to $151.3bn, and total rates derivatives ADV was up 68.1% YoY to $240.5bn.
- Swaps/swaptions ≥ 1-year volumes were driven by continued engagement from international clients; faster growth in the request-for-market (RFM) protocol; and further growth in emerging markets trading.
CREDIT
- U.S. Credit ADV was up 20.1% YoY to $5.1bn and European credit ADV was up 63.5% YoY to $1.9bn.
- In July, client use of Tradeweb AllTrade protocols reached new highs in TRACE share with strong growth in both sessions-based and RFQ trading across U.S. High Grade and U.S. High Yield. U.S. High Grade TRACE market share was 20.2% (12.0% fully electronic). U.S. High Yield TRACE market share was a record of 9.9% (6.4% fully electronic), with record volumes executed via portfolio trading. In Europe, clients executed record volume via portfolio trading.
- Credit derivatives ADV was up 22.4% YoY to $7.5bn.
- Recent rising volatility provided a boost to overall market activity.
EQUITIES
- U.S. ETF ADV was up 89.4% YoY to $6.2bn and European ETF ADV was up 43.9% YoY to $2.5bn.
- Client growth and adoption, particularly among institutional clients, continued to drive volumes in U.S. and European markets, with record U.S. institutional ETF activity.
MONEY MARKETS
- Repurchase Agreement ADV was up 38.9% YoY to $345.1bn.
- The continued 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.
