Second Quarter 2024 ADV up 48.3% YoY
Tradeweb CEO
In
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ADV in
U.S. government bonds
For the second quarter of 2024, Tradeweb records included:
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ADV in
U.S. government bonds -
ADV in fully electronic
U.S. high yield - ADV in repurchase agreements (Repo)
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Share of fully electronic
U.S. high grade TRACE
RATES
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U.S. government bond ADV was up 50.8% YoY to$210.7 billion (bn). European government bond ADV was up 17.4% YoY to$50.5bn .-
U.S. government bond volumes were supported by growth across all client sectors. Increased adoption across a range of protocols and favorable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes. Market volatility and sustained primary issuance acrossEurope and theUK helped drive trading volume in European government bonds, especially gilts.
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Mortgage ADV was up 22.9% YoY to
$208.9bn .- Stronger To-Be-Announced (TBA) volumes were a result of increased activity from the hedge fund community, in addition to heightened basis trading. Client participation on our securitized products platform set a new record and volume executed by mortgage originators also hit a new high.
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Swaps/swaptions ≥ 1-year ADV was up 56.0% YoY to
$437.3bn and total rates derivatives ADV was up 69.1% YoY to$782.2bn .- Strong volume in swaps/swaptions ≥ 1-year was driven by global political uncertainty and pending central bank policy decisions, as well as a 41% increase in compression activity, which carries a lower fee per million. Client trading activity continued to increase in the request-for-market (RFM) protocol while inflation and emerging markets swap growth remained strong. 2Q24 compression activity was lower than 1Q24.
CREDIT
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Fully electronic
U.S. credit ADV was up 41.4% YoY to$7.0bn and European credit ADV was up 24.2% YoY to$2.5bn .-
U.S. credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade®. Tradeweb captured 18.9% share of fully electronicU.S. high grade TRACE, and 8.1% share of fully electronicU.S. high yield TRACE. InEurope , portfolio trading and our unique dealer selection tool (SNAP IOI) saw increased client adoption.
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Municipal bonds ADV was up 30.4% YoY to
$410 million (mm).- Volume growth outpaced the broader market, as institutional and retail volumes both surpassed 20% growth YoY amidst robust issuance.
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Credit derivatives ADV was up 92.0% YoY to
$14.7bn .- Increased hedge fund and systematic account activity, along with heightened credit volatility, led to increased swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.
EQUITIES
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U.S. ETF ADV was down 11.1% YoY to$8.1bn and European ETF ADV was up 18.1% YoY to$2.8bn .-
ETF market volumes remained muted as market volatility remained low. On Tradeweb,
U.S. ETF institutional volumes remained strong, while wholesale market volumes were lower. European ETF volumes grew as clients continued to embrace our automated rules-based trading protocol.
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ETF market volumes remained muted as market volatility remained low. On Tradeweb,
MONEY MARKETS
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Repo ADV was up 20.8% YoY to
$599.2bn .- Increased client activity on Tradeweb’s electronic repo trading platform drove strong global repo activity. The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity was strong as markets priced in less aggressive Fed rate cuts.
Please refer to the report posted to https://www.tradeweb.com/newsroom/monthly-activity-reports/ for complete information and data related to our historical monthly, quarterly and yearly ADV and total trading volume across asset classes.
About
Basis of Presentation
All reported amounts are presented in
Market and Industry Data
This press release and the complete report include estimates regarding market and industry data that we prepared based on our management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information.
Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.
We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in the documents of
Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.
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1 Tradeweb acquired Yieldbroker on
2 See pg. 7 of the report available at https://www.tradeweb.com/newsroom/monthly-activity-reports/ for the detailed breakdown of average variable fees per million dollars of volume traded for each underlying asset class.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240708472629/en/
Media:
+1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investors:
+1 646 430 6027
Ashley.Serrao@Tradeweb.com
+1 646 767 4864
Sameer.Murukutla@Tradeweb.com
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