December 2022 ADV up 11.6% YoY

Fourth Quarter 2022 ADV down 4.1% YoY

Full Year 2022 ADV up 9.9% YoY

Tradeweb Markets Inc., a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, reported total trading volume for December 2022 of $21.2 trillion (tn). Average daily volume (ADV) for the month was $1.02tn, an increase of 11.6 percent (%) year-over-year (YoY). For the fourth quarter of 2022, total trading volume was $65.8tn and ADV was $1.07tn, a decrease of 4.1% YoY, with preliminary average variable fees per million dollars of volume traded of $3.00.[1]

Our average daily trading volume for December 2022 was $1.02tn, up 11.6% year-over-year. We also reported strong volumes for Q4 and full-year 2022.

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— Tradeweb (@Tradeweb) January 5, 2023

Billy Hult, Tradeweb CEO, said: “Despite a complex backdrop of inflation, rates volatility, geopolitical risk and a strong U.S. dollar, we saw an increase of nearly 10 percent in our average daily volumes year-over-year in 2022. While rates volumes reflected these headwinds in the early part of the fourth quarter, we finished the year with a strong December across our global platform. The growth we experienced was broad-based across our markets, and reflected stronger client engagement in an array of tools and protocols including portfolio trading, request-for-quote (RFQ) and request-for-market (RFM).”

Record Highlights (See table below for the full breakdown of volumes)

December 2022:

• Record share of TRACE in fully electronic U.S. High Grade credit

Fourth quarter 2022:

• Record ADV and record share of TRACE in fully electronic U.S. High Grade credit
• Record ADV in U.S. credit Tradeweb AllTrade®
• Record ADV in institutional and retail municipal bond trading
• Record ADV in retail U.S. government bonds, U.S. credit and money markets
• Record ADV in U.S. institutional ETFs
• Record ADV in sessions-based trading across global cash bonds

Full year 2022:

• Record ADV in global portfolio trading
• Record ADV in U.S. credit Tradeweb AllTrade®
• Record ADV in U.S. credit RFQ
• Record ADV in emerging markets interest rate swaps
• Record share of TRACE in fully electronic U.S. High Grade and U.S. High Yield credit
• Record ADV in global institutional ETFs

December 2022 Highlights

Rates

• U.S. government bond ADV was up 0.3% YoY to $114.1 billion (bn). European government bond ADV was up 25.5% to $27.5bn.
  • Higher U.S. retail government bond activity was offset by declines in wholesale trading, as overall industry volumes declined. Higher interest rates continued to drive volumes in the retail market. Strong European government bond trading was driven by heightened rates market volatility.

• Mortgage ADV was down 13.0% YoY to $130.6bn.

• • Historically high mortgage rates and inflation continued to weigh on issuance and trading activity in the sector.

• Swaps/swaptions ≥ 1-year ADV was up 13.0% YoY to $186.8bn and total rates derivatives ADV was up 19.1% to $316.7bn.

• • Swaps/swaptions ≥ 1-year volumes were supported by strong activity in global inflation and emerging markets swaps, with robust client adoption of the RFM protocol.

Credit   

• Fully electronic U.S. Credit ADV was up 29.7% YoY to $3.6bn and European credit ADV was up 17.7% to $1.3bn.

• • U.S. and European credit volumes reflected continued client adoption across Tradeweb protocols, including RFQ, Tradeweb AllTrade^® and portfolio trading. Tradeweb captured a record 14.8% share of fully electronic U.S. High Grade TRACE, and 6.7% share of fully electronic U.S. High Yield TRACE.

• Municipal bonds ADV was up 141.5% YoY to $437 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 6.7% YoY to $7.9bn.
  • Subdued credit market volatility weighed on volumes.

Equities

• U.S. ETF ADV was down 3.8% YoY to $7.6bn and European ETF ADV was down 6.6% to $2.4bn.

• • An increase of 25.3% YoY in global institutional client activity, driven by further adoption of Tradeweb’s RFQ protocol, was more than offset by lower activity in the wholesale market.

Money Markets

• Repurchase Agreement ADV was up 20.7% YoY to $379.0bn.

• • 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 since November 2022 as interest rates remained elevated.

YoY Volume for December 2022, Q4 2022 and Full Year (FY) 2022

*Bolded numbers indicate a record for the Tradeweb platform

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.

Source: Tradeweb