Tradeweb Reports June 2023 Total Trading Volume Of $29.3 Trillion And Average Daily Volume Of $1.38 Trillion

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 June 2023 of $29.3 trillion (tn). Average daily volume (ADV) for the month was $1.38tn, an increase of 10.8 percent (%) year-over-year (YoY). For the second quarter of 2023, total trading volume was $81.0tn and ADV was $1.30tn, an increase of 10.2% YoY, with preliminary average variable fees per million dollars of volume traded of $2.60.¹

In June 2023, Tradeweb records included:

• Share of TRACE in fully electronic U.S. High Grade credit
• ADV in global repurchase agreements

For the second quarter of 2023, Tradeweb records included:

• Share of TRACE in fully electronic U.S. High Grade credit
• ADV in global repurchase agreements
• ADV in equity convertibles/swaps/options

June 2023 Highlights

Rates  

• U.S. government bond ADV was up 12.6% YoY to $139.7 billion (bn). European government bond ADV was up 16.7% YoY to $43.0bn.
  • Growth in retail and institutional U.S. government bond volumes was strong. 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 down 2.7% YoY to $169.9bn.

• • While market uncertainty and volatility weighed on overall activity, institutional specified pool trading had its second highest volume month ever due to growing client engagement.

• Swaps/swaptions ≥ 1-year ADV was up 11.7% YoY to $280.4bn and total rates derivatives ADV was up 10.9% YoY to $462.4bn.
  • Higher volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a 30% YoY increase in compression activity. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Strong volumes were driven by record activity in emerging markets swaps and global inflation swaps as well as record client activity in the request-for-market (RFM) protocol.

Credit  

• Fully electronic U.S. credit ADV was up 35.3% YoY to $5.0bn and European credit ADV was up 22.9% YoY to $2.0bn.

•  
  • Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading, as the broader TRACE credit market was relatively flat. Tradeweb captured a record 16.0% share of fully electronic U.S. High Grade TRACE, and 6.6% 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 was down 18.0% YoY to $314 million (mm).
  • While institutional and retail client activity remained healthy, Tradeweb municipal volumes reflected a broader decline in municipal market volumes given relative yield dynamics and limited new issuance.
    
    
• Credit derivatives ADV was down 53.5% YoY to $7.7bn. 
  • Significant tightening of credit spreads led to a steep decline in overall broader swap execution facility (SEF) market activity.

Equities  

• U.S. ETF ADV was up 20.3% YoY to $9.1bn and European ETF ADV was down 14.7% YoY to $2.4bn.

•  
  • U.S. ETF growth was driven by strong wholesale activity, while institutional client engagement remained robust. European ETF volumes reflected declining overall market volumes.

Money Markets

• Repurchase agreement ADV was up 18.2% YoY to $496.1bn.

•  
  • Further client adoption of Tradeweb’s electronic trading solutions drove record global repo activity, despite continued volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. 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.

1. See pg. 7 of the report available at https://www.tradeweb.com/newsroom/monthly-activity-reports/ for the detailed breakdown of average variable fees per million dollars of volume traded for each underlying asset class.