In
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ADV in
U.S. government bonds - ADV in European government bonds
- ADV in rates futures
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ADV in fully electronic
U.S. High Grade credit - ADV in equity convertibles/swaps/options
- ADV in global repurchase agreements
RATES
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U.S. government bond ADV was up 44.0% YoY to$207.8 billion (bn). European government bond ADV was up 17.9% YoY to$51.0bn .-
U.S. government bond volumes were supported by growth across all client sectors, leading to record volume on the institutional platform for the second consecutive month. Increased adoption across a wide range of trading protocols, along with sustained rates market volatility, contributed to the increase in volume. The addition of r8fin also contributed positively to wholesale volumes. Higher interest rates continued to drive trading in the retail market on the short end of the curve. European government bond volumes continued to be strong, particularly inUK Gilts, where there was continued flow and growth in our dealer-to-client platform. We also saw an abundance of new issuance acrossEurope and theUK in the primary market, along with increased client activity.
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Mortgage ADV was up 12.2% YoY to
$188.1bn .- Platform trading activity remained healthy while shifting rate-cut bets led agency mortgages to underperform compared to other fixed-income asset classes. Specified pool trading volumes set a record high, up 170% YoY.
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Swaps/swaptions ≥ 1-year ADV was up 65.1% YoY to
$502.3bn and total rates derivatives ADV was up 32.1% YoY to$789.7bn .- 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 an 88% 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
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Fully electronic
U.S. credit ADV was up 49.9% YoY to$7.7bn and European credit ADV was up 4.7% YoY to$2.3bn .-
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 captured 17.5% share of fully electronicU.S. High Grade TRACE, and 6.6% share of fully electronicU.S. High Yield TRACE. Strong European credit volumes were supported by continued growth in client use of Tradeweb Automated Intelligent Execution (AiEX) and portfolio trading.
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Strong
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Municipal bonds ADV was down 4.4% YoY to
$322 million (mm).-
Volumes slightly outperformed the broader market, which was down more than 5% YoY. Retail activity was more resilient than institutional flows, as Muni/
U.S. Treasury ratios remained unattractive.
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Volumes slightly outperformed the broader market, which was down more than 5% YoY. Retail activity was more resilient than institutional flows, as Muni/
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Credit derivatives ADV was down 23.1% YoY to
$8.1bn .- Tight credit spreads and low market volatility led to subdued swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.
EQUITIES
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U.S. ETF ADV was up 20.6% YoY to$8.7bn and European ETF ADV was up 7.0% YoY to$3.0bn .-
U.S. and European ETF growth was driven by continued institutional client adoption of ETF trading via Tradeweb’s electronic RFQ as well as an uptick in the use of our ETF portfolio trading functionality.
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MONEY MARKETS
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Repurchase agreement ADV was up 33.8% YoY to
$550.3bn .- Increased client engagement with Tradeweb’s electronic repo trading protocols drove record global repo activity. The combination of quantitative tightening, heightened collateral supply, and current rates market activity shifted more balances from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity was strong as interest rates remained elevated and market expectations for rate cuts moved further into 2024.
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 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.
1 Tradeweb acquired Yieldbroker on
View source version on businesswire.com: https://www.businesswire.com/news/home/20240305239433/en/
Media:
+1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investors:
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+1 646 767 4864
Sameer.Murukutla@Tradeweb.com
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