06.05.2019
By Rob Daly Editor-at-Large

Tradeweb Reports Monthly Activity

06.05.2019 By Rob Daly Editor-at-Large

Tradeweb has published its May 2019 Monthly Activity Report, which captures trading activity in fixed income, derivatives, and ETF markets.

Across all asset classes, May 2019 set a new record in total trading volume, with average daily trading volume (ADV) of 741.8 billion, up 38.7% year over year. The strong volumes were driven by a rise in trading of short-term tenors as well as continued growth in overall trading volumes

Key trends for the month include:

  • Short-Term Rates Trading Surges: Activity in rates derivatives increased 94.0% year-over-year in May, reaching a total ADV of $228.1 billion, predominately driven by an increase in trading of swaps and swaptions under 1 year in duration.
  • Repo Volumes Crest $200 Billion for First Time in Decade: Total ADV of $211.5 billion in repurchase agreements were traded during the month of May, an increase of 43.7% year-over-year, and the first time repo market volumes exceeded the $200 billion threshold since March 2009.
  • Increase in Mortgage-Backed Security Volume: Total ADV of $157.7 billion in mortgage-backed securities was up 14.6% year-over-year, driven in part by the inception of trading of Uniform Mortgage-Backed Securities, the new common mortgage-backed security issued by both Fannie Mae and Freddie Mac.
  • U.S. Government Bond Volumes Rise Amid Volatility: U.S. government bond trading volume was up 23.6% in May, bringing total ADV for the month to $83.6 billion, reflecting the repricing of market expectations as yields continued to decline throughout the month.
  • Chinese Bond Market Activity Continues to Grow: ADV of $859 million in Chinese bonds were traded on the Tradeweb platform in May, an 85.7% year-over-year increase.

The full Tradeweb Monthly Activity Report for May 2019 is available here: https://www.tradeweb.com/market_activity_reports/

 

SOURCE: Tradeweb

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