Tradeweb Q2 Revenue Increases 23%07.29.2021
Tradeweb has just released its second quarter 2021 financial results, with revenues of $260.8 million up 23.0% from prior the year period.
Lee Olesky, CEO and co-founder of Tradeweb Markets, said:
“Broadening client choice was an important theme this quarter in both credit and rates. Our clients utilized a wider range of electronic trading tools and protocols in credit including RFQ, Tradeweb AllTrade and Portfolio Trading – further evidence that electronic trading activity continues to grow in terms of both volume and sophistication. With the acquisition of the Nasdaq Fixed Income platform completed in June, clients trading wholesale U.S. Treasuries have more choice between our popular stream s protocol and the new central limit order book. From a broader Tradeweb perspective, this acquisition is a great opportunity and we believe it positions us well to drive additional shareholder value.”
- $976.9 billion average daily volume (“ADV”) for the quarter, an increase of 25.5% compared to prior year period with new ADV records in U.S. High Yield credit and Repurchase Agreements.
- In U.S. credit, Tradeweb set new records for its share of fully electronic TRACE volume: High Grade was 12.1% up from 5.8% in the prior year period and High Yield was 4.8%, up from 1.5% over prior year period
- $66.2 million net income and $93.6 million adjusted net income for the quarter, increases of 56.2%, and 32.9% respectively from prior year period
- 50.6%adjusted EBITDA margin or $131.9 million adjusted EBITDA for the quarter, compared to 47.8% or $101.3 million respectively for prior year period
- $0.27 diluted earnings per share (“Diluted EPS”) for the quarter and $0.39 adjusted diluted earnings per share
- $0.08 per share quarterly cash dividend declared; $51.7 million of shares repurchased
Goldman Sachs and Caisse de dépôt et de placement du Québec (CDPQ) were counterparties.
Aim is to increase flexibility and efficiency for institutional clients trading corporate bonds.
Average daily volume increased of 14% year-over-year.
The dollar swaps market progression is moving forward in full force, Tradeweb's Colm Murtagh writes.
Technology changes the game for ETF RFQ trading.