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 August 2023 of $33.0 trillion (tn). Average daily volume (ADV) for the month was $1.44tn, an increase of 41.2 percent (%) year-over-year (YoY), including foreign exchange tailwinds.
In August 2023, Tradeweb records included:
- Share of TRACE in fully electronic U.S. High Grade credit
- Share of TRACE in fully electronic U.S. High Yield credit
- ADV in swaps/swaptions ≥ 1-year
- ADV in Chinese bonds
Next month we will release our 3Q23 fee per million calculation in conjunction with the September Monthly Activity Report. We will be moving China Bonds fee per million from Cash Credit to Credit Derivatives, China Bonds and U.S. Cash “EP” given that our China Bonds product has a fee per million that is more in-line with the Credit Derivatives and U.S. Cash “EP”. Please find an updated Historical Financials file that calculates historical fee per million based on this new categorization.
August 2023 Highlights
Rates
- U.S. government bond ADV was up 14.9% YoY to $142.7 billion (bn). European government bond ADV was up 19.6% YoY to $32.9bn.
- Growth was driven by strong activity across all client sectors. Higher interest rates continued to drive trading in the retail market. U.S. and European government bond volumes were supported by sustained rates market volatility.
- Mortgage ADV was up 11.0% YoY to $174.4bn.
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- Overall trading activity was supported by relative value trading, despite continued sluggish origination. Client engagement in specified pool trading remained strong.
- Swaps/swaptions ≥ 1-year ADV was up 125.4% YoY to $381.8bn and total rates derivatives ADV was up 89.0% YoY to $535.9bn.
- Record volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a 195% YoY increase in compression activity. Quarter-to-date compression percentage is running higher than 2Q23. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Strong volumes continued to be buoyed by activity in emerging markets swaps, global inflation swaps and the request-for-market (RFM) protocol.
Credit
- Fully electronic U.S. credit ADV was up 38.9% YoY to $4.8bn and European credit ADV was up 48.5% YoY to $1.6bn.
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- Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading. Tradeweb captured a record 17.3% share of fully electronic U.S. High Grade TRACE, and a record 8.5% share of fully electronic U.S. High Yield TRACE. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
- Municipal bonds ADV remained relatively flat YoY to $345 million (mm).
- Municipal volumes reflected healthy institutional and retail client activity.
- Credit derivatives ADV was down 30.5% YoY to $7.9bn.
- Continued tightening of credit spreads led to a decline in overall broader swap execution facility (SEF) market activity.
Equities
- U.S. ETF ADV was up 28.0% YoY to $6.8bn and European ETF ADV was down 11.9% YoY to $1.9bn.
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- Elevated volatility earlier in the month supported strong U.S. ETF wholesale activity, while institutional activity was down. European ETF volumes reflected declining overall market volumes.
Money Markets
- Repurchase agreement ADV was up 33.1% YoY to $491.9bn.
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- Further client adoption of Tradeweb’s electronic trading solutions drove global repo activity. Current U.S. market conditions shifted demand from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity continued to be strong as interest rates remained elevated.
Please refer to the report posted to https://www.tradeweb.com/newsroom/monthly-activity-reports/ for complete information and data related to our historical monthly, quarterly and yearly ADV and total trading volume across asset classes.
