Tradeweb Markets, a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, reported total trading volume for the month of January 2024 of $42.6 trillion (tn)¹. Average daily volume (ADV) for the month was a record $2.00tn, an increase of 74.6 percent (%) year-over-year (YoY).

In January 2024, Tradeweb records included:

• ADV in U.S. government bonds
• ADV in European government bonds
• ADV in swaps/swaptions ≥ 1-year
• ADV in fully electronic U.S. High Grade credit
• ADV in European credit
• ADV in global repurchase agreements

January 2024 Highlights

Rates

• U.S. government bond ADV was up 33.7% YoY to $182.1 billion (bn). European government bond ADV was up 18.5% YoY to $50.1bn.
  • U.S. government bond volumes were supported by growth across all client sectors, including record volume on the institutional platform, as well as increased adoption across a diverse set of trading protocols and sustained rates market volatility. Higher interest rates continued to drive trading in the retail market on the short-end of the curve. Strong European government bond volumes were driven by sustained rates market volatility and new issuances in the primary market as well as increased client activity.

• Mortgage ADV was up 23.9% YoY to $219.5bn.
  • To-Be-Announced (TBA) platform volumes were supported by elevated roll trading activity as well as strong participation from the hedge fund community. Specified pool trading volumes were up 94.5% YoY, driven by increased client adoption and origination executed on the platform.

• Swaps/swaptions ≥ 1-year ADV was up 207.2% YoY to $590.8bn and total rates derivatives ADV was up 194.2% YoY to $922.7bn.
  • Strong volume in swaps/swaptions ≥ 1-year was driven by ongoing institutional client activity in response to current global central bank policy decisions, as well as a 379% YoY increase in compression activity, which carries a lower fee per million. Quarter-to-date compression activity is running higher than 4Q23. Clients continued to utilize the request-for-market (RFM) protocol for larger risk transfers, while inflation and emerging markets swap growth remained strong.

Credit

• Fully electronic U.S. credit ADV was up 45.0% YoY to $7.1bn and European credit ADV was up 16.0% YoY to $2.5bn.
  • Strong U.S. credit volumes were driven by increased client adoption of Tradeweb protocols, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade®. Tradeweb saw record portfolio trading globally, and captured 17.0% share of fully electronic U.S. High Grade TRACE, and 7.2% share of fully electronic U.S. High Yield TRACE. Record European credit volumes were supported by strong activity in RFQ, portfolio trading and Tradeweb Automated Intelligent Execution (AiEX), as well as increased client adoption of our smart dealer selection tools and Tradeweb AllTrade protocols.
• Municipal bonds ADV was up 1.5% YoY to $322 million (mm).
  • Volumes slightly outperformed the broader market, which was flat², as demand from retail and institutional investors remained resilient.

• Credit derivatives ADV was up 0.9% YoY to $9.7bn.
  • Tight credit spreads and low market volatility led to subdued swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.

Equities

• U.S. ETF ADV was up 41.8% YoY to $10.1bn and European ETF ADV was down 12.3% YoY to $2.6bn.
  • U.S. growth was driven by continued institutional ETF adoption as well as increased trading in our wholesale equity businesses. European ETF volumes were lower alongside muted European equity market volumes.

Money Markets

• Repurchase agreement ADV was up 31.1% YoY to $546.2bn.
  • Increased client adoption of Tradeweb’s electronic trading solutions drove record global repo activity. Quantitative tightening, heightened collateral supply and current rates market activity shifted demand from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity continued to be strong as interest rates remained elevated.

Source: Tradeweb