Tradeweb Reports Monthly Activity
Tradeweb released its Monthly Activity Report, which captures trading activity on the platforms in fixed income, derivatives and ETF trading. The trading-platform operator reported average daily volumes in August were up 38.0% year over year.
The following is a break-out of the most noteworthy trends from August:
- Derivatives continue to grow: ADV in rates derivatives rose 199.0% year over year (YoY) due to increased market share of SEF interest rates swap volumes and growth in MTF volumes; ADV in credit derivatives rose 34.6% YoY despite a decline in overall SEF market volumes of 10.0 over the same period; ADV in equity derivatives rose 169.4% YoY attributable to RFQ trading in European equity options.
- Government bond volumes strong: U.S. Treasuries ADV increased 27.2% YoY while European government bonds increased 39.6% over the same period.
- U.S. corporate bonds up despite secular headwind: U.S. high-grade ADV rose 42.9% YoY and exceeded 10.0% of TRACE for the first time with fully-electronic trading accounting for 3.6% of the total; U.S. high-yield ADV rose 64.7% YoY; In comparison TRACE volumes of high-grade declined 5.5% YoY and high-yield declined 6.6%; In Europe, ADV in corporate bonds rose 21.7% YoY.
- Retail fixed income record: ADV on Tradeweb Direct set a new five-year high in August due to rises in retail trading activity in municipal bonds and corporate bonds on the platform.
- Repos on a roll: The growth of trading in repurchase agreements continued in August as ADV increased 39.4% YoY.
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.
IRS trading volumes have fragmented without an equivalence agreement.
Increased electronification has created useable and accessible real-time and historic trade data.
Members are evaluating payment-versus-payment for currencies not yet eligible for CLSSettlement.