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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 January 2023 of $23.2 trillion (tn). Average daily volume (ADV) for the month was $1.15tn, an increase of 2.8 percent (%) year-over-year (YoY).
Tradeweb's broad offering across products, geographies and client sectors resulted in a number of records for January 2023 including:
- ADV in European government bonds
- ADV in fully electronic U.S. High Grade credit
- ADV in European credit
- ADV in global portfolio trading
- ADV in U.S. credit Tradeweb AllTrade®, including sessions-based trading and all-to-all trading
- ADV in U.S. institutional ETFs
We continued to help our clients navigate a complex macroeconomic backdrop, including evolving central bank policy, sustained elevated volatility, economic concerns and a strong U.S. dollar (USD).
January 2023 Highlights
RATES
- U.S. government bond ADV was down 7.2% YoY to $136.1 billion (bn). European government bond ADV was up 14.3% to $42.3bn.
- Higher U.S. retail government bond activity was offset by declines in wholesale trading. Higher interest rates continued to drive trading in the retail market. Record European government bond volume was driven by issuance and heightened rates market volatility.
- Mortgage ADV was down 16.4% YoY to $177.1bn.
- Historically high mortgage rates continued to weigh on overall market activity and issuance, while the recent decline in market volatility provided some support.
- Swaps/swaptions ≥ 1-year ADV was up 17.3% YoY to $192.4bn and total rates derivatives ADV was up 2.2% to $313.9bn.
- Swaps/swaptions ≥ 1-year volumes were supported by strong activity in global inflation and emerging markets swaps, with robust client adoption of the request-for-market (RFM) protocol.
CREDIT
- Fully electronic U.S. Credit ADV was up 27.0% YoY to $4.9bn and European credit ADV was up 3.1% to $2.2bn.
- Record European credit and strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade and portfolio trading. Record volume in global portfolio trading and Tradeweb AllTrade, including sessions-based trading and all-to-all trading, drove record ADV in fully electronic U.S. High Grade activity. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 13.7% and 5.6%, respectively.
- Municipal bonds ADV was up 40.8% YoY to $318 million (mm).
- Strong municipal volumes reflected robust institutional and retail client activity. Market volatility and elevated interest rates continued to boost volumes overall.
- Credit derivatives ADV was down 26.6% YoY to $9.6bn.
- Overall market volumes were lower due to subdued credit market volatility.
EQUITIES
- U.S. ETF ADV was down 26.0% YoY to $7.1bn and European ETF ADV was down 22.7% to $2.9bn.
- Record U.S. institutional ETF activity, driven by further adoption of Tradeweb’s RFQ protocol, was more than offset by declining wholesale volumes. European ETF volumes reflected declining overall market volumes.
MONEY MARKETS
- Repurchase Agreement ADV was up 20.4% YoY to $416.9bn.
- Continued client adoption of Tradeweb’s electronic trading solutions drove Global Repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity reflected our second-best month (record was November 2022) 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.
