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- September 2023 ADV up 30.8% YoY
- Third Quarter 2023 ADV up 29.6% YoY
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 September 2023 of $31.8 trillion (tn). Average daily volume (ADV) for the month was a record $1.57tn, an increase of 30.8 percent (%) year-over-year (YoY). For the third quarter of 2023, total trading volume was $90.4tn and ADV was a record $1.42tn, an increase of 29.6% YoY, with preliminary average variable fees per million dollars of volume traded of $2.51.[1]
In September 2023[2], Tradeweb records included:
- ADV in global repurchase agreements
For the third quarter of 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 fully electronic U.S. High Grade credit
- ADV in global repurchase agreements
- ADV in Chinese bonds
- ADV in swaps/swaptions ≥ 1-year
September 2023 Highlights
Rates
- U.S. government bond ADV was up 12.4% YoY to $145.3 billion (bn). European government bond ADV was up 1.9% YoY to $42.4bn.
- U.S. government bond volumes were supported by growth 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 12.0% YoY to $181.6bn.
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- Overall trading activity remained high, despite a backdrop of rising rates and broader market volatility. Client engagement in specified pool trading remained robust, continuing to drive strong YoY growth.
- Swaps/swaptions ≥ 1-year ADV was up 30.0% YoY to $335.3bn and total rates derivatives ADV was up 45.3% YoY to $570.9bn.
- Higher volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a 44% YoY increase in compression activity. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Robust volumes were driven by continued strong activity in global inflation swaps and the request-for-market (RFM) protocol as well as record activity in emerging markets swaps.
Credit
- Fully electronic U.S. credit ADV was up 14.3% YoY to $4.9bn and European credit ADV was up 22.6% YoY to $2.1bn.
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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’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 15.8%, and 7.7%, respectively. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
- Municipal bonds ADV was down 7.1% YoY to $357 million (mm).
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- Municipal volumes reflected healthy institutional and retail client activity, as broader municipal bond market volumes declined 15.4%[3].
- Credit derivatives ADV was down 1.1% YoY to $36.6bn.
- Strong semiannual rolling activity supported volumes despite a 13%[4] decline in broader swap execution facility (SEF) market activity.
Equities
- U.S. ETF ADV was down 2.9% YoY to $7.4bn and European ETF ADV was down 8.8% YoY to $2.2bn.
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- While suppressed volatility at the beginning of the month weighed on overall volumes, activity accelerated towards the end of the month. Client engagement in U.S. ETFs remained robust, despite a decline of 18%[5] in overall U.S. ETF market volumes. European ETF volumes reflected declining overall market volumes.
Money Markets
- Repurchase agreement ADV was up 38.9% YoY to $529.6bn.
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- Further client adoption of Tradeweb’s electronic trading solutions drove record 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.
