Tradeweb Has Record Trading Volume
Average daily volume (ADV) across rates, credit, equities and money markets for Tradeweb Markets was a record $1.002 trillion (tn) in March 2020, an increase of 41.5 percent (%) year over year (YoY). Average daily trades for the month totaled 68,896.
This morning we reported March volume, including average daily trading volume of $1 trillion.
— Tradeweb (@Tradeweb) April 3, 2020
Markets saw unprecedented volatility during the month, and Tradeweb activity was elevated throughout. On March 3rd, the day of the emergency rate cut by the Federal Reserve, a record $1.5 tn was traded across the Tradeweb platform globally.
In addition, new records were set across several products over the month, including European government bonds, interest rates derivatives, credit derivatives, and U.S. and European ETFs.
European government bond trading rose 27.3% year-over-year and surpassed ADV of $30 billion (bn) for the first time.
Interest rate derivatives trading rose 70.5% YoY to ADV of $319.2 bn, on strong compression trading including record activity in multi-asset packages.
Credit volumes showed continued strength despite market conditions as clients utilized a diverse mix of portfolio trading, credit derivatives and electronic processing to move large blocks of risk. ADV in US high-grade credit rose 35.4% YoY to $3.8 bn, representing 12.8% of TRACE volume. ADV in US high-yield credit increased 99.5% YoY to $488 million (mm), representing 3.6% of TRACE volume. ADV in European credit meanwhile rose 12.3% YoY to $1.5 bn.
Credit derivatives trading ADV of $47.1 bn was up 148.4% YoY, more than double the previous monthly record.
As investors and traders turned to ETFs to transact risk as efficiently and quickly as possible, global ETF activity on Tradeweb increased 225.6% YoY. US ETF volume was up 242.0% YoY to $10.0 bn – with new records in both institutional and wholesale client sectors – and European ETFs was up 190.6% YoY to $4.0 bn.
Trading in repurchase agreements increased 32.5% YoY to ADV of $235.4 bn.
Electronification of the municipal bond market also presents a large opportunity.
The success of Northbound trading showed electronic execution is way forward for the bond market.
Algorithms have become more prevalent in the spot FX market.
Increased electronification has created useable and accessible real-time and historic trade data.
Buy-side firms can discover liquidity more efficiently and execute on Turquoise.