Tradeweb Reports Volume of $19.3 Trillion in April
May 05 2021 - 7:30AM
Business Wire
April Average Daily Volume was $896.8bn, an
increase of 17.5% YoY
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today reported total trading volume for April 2021 of
$19.3 trillion (tn). Average daily volume (ADV) for the month was
$896.8 billion (bn)1, an increase of 17.5 percent (%) year over
year (YoY).
Lee Olesky, Tradeweb CEO, said: “Tradeweb continued to grow its
U.S. credit market share in April, with our fully electronic share
for U.S. High Grade TRACE reaching 11.7% up from 3.0% just three
years ago. Credit markets are seeing more trading volume executed
electronically, and Tradeweb has increased its share of that
growing volume thanks to innovative tools and protocols such as
electronic portfolio trading, net spotting and automated trading
via AiEX to name a few.”
In U.S. Credit, Tradeweb captured 21.7% of U.S. High Grade TRACE
share and 8.9% of U.S. High Yield TRACE share, with fully
electronic activity of 11.7% and 4.8%, respectively—all records for
the platform. In addition, U.S. High Yield ADV was a record.
There is a marked change in client behavior from prior to the
pandemic as participants integrate newer execution protocols and
advanced trading technologies that allow for more efficient price
discovery and enhanced automation into their trading workflows. For
example, U.S. Treasury volumes saw year-over-year growth, despite
Primary Dealer and TRACE data showing overall market volumes
easing. Furthermore, Institutional swaps SEF market share grew over
500bp vs April 2020 according to ClarusFT data.
RATES
- U.S. government bond ADV was up 7.4% YoY to $95.5bn, and
European government bond ADV was up 3.8% YoY to $28.4bn.
- Tradeweb facilitated strong client activity in streams and
session-based trading in U.S. Treasuries. Steady global government
bond issuance remained supportive of trading generally despite
waning market volatility.
- Mortgage ADV was down 1.2% YoY to $171.8bn.
- A more measured pace of rates tempered activity, though Fed
purchase commitments remained supportive of the market.
- Swaps/swaptions ≥ 1-year ADV was down 4.2% YoY to $138.5bn, and
total rates derivatives ADV was up 10.7% YoY to $221.1bn.
- Activity in swaps/swaptions ≥ 1-year decreased as overall
market activity eased, though Tradeweb’s share of institutional
activity increased. The trends seen in Q1 persisted—continued
growth in engagement from international clients, faster growth in
the request-for-market (RFM) protocol relative to compression, and
strong emerging market trading with first trades in Brazilian Real,
Colombian Peso and Chilean Peso.
CREDIT
- U.S. Credit ADV was up 21.0% YoY to $6.0bn and European credit
ADV was up 30.7% YoY to $1.9bn.
- Robust client activity, particularly in the U.S., more than
offset the decline in overall market activity. U.S. High Grade
TRACE market share was a record 21.7% (11.7% fully electronic) and
TRACE High Yield market share was a record 8.9% (4.8% fully
electronic). Volumes remained strong across protocols, with record
Tradeweb AllTrade activity in Europe. As increasing numbers of
clients use Multi-Client Net Spotting and the solution continues to
scale, the benefit to client workflow, including cost efficiencies,
drove trading activity on the Tradeweb platform during the
month.
- Credit derivatives ADV was down 23.0% YoY to $9.8bn.
- CDS indices traded in their tightest monthly range of the year,
which muted market volumes versus a historically busy April
2020.
EQUITIES
- U.S. ETF ADV was up 34.7% YoY to $6.4bn and European ETF ADV
was up 25.8% YoY to $2.3bn.
- Continued client growth and adoption, particularly in the
institutional sector, more than offset declining market
volatility.
MONEY MARKETS
- Repurchase Agreement ADV was up 46.6% YoY to $326.4bn.
- Global Repo activity grew with the addition of new dealers and
increased support of new collateral and functionality. Retail money
markets activity remained pressured by the low interest rate
environment.
To access the complete report containing additional data points
and commentary, go to
https://www.tradeweb.com/newsroom/monthly-activity-reports/.
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets. Founded in 1996, Tradeweb provides access to markets, data
and analytics, electronic trading, straight-through-processing and
reporting for more than 40 products to clients in the
institutional, wholesale and retail markets. Advanced technologies
developed by Tradeweb enhance price discovery, order execution and
trade workflows while allowing for greater scale and helping to
reduce risks in client trading operations. Tradeweb serves
approximately 2,500 clients in more than 65 countries. On average,
Tradeweb facilitated more than $870 billion in notional value
traded per day over the past four quarters. For more information,
please go to www.tradeweb.com.
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 Tradeweb Markets Inc. on file with or furnished to
the SEC, may cause our actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. Given these risks and uncertainties,
you are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements
contained in this release are not guarantees of future performance
and our actual results of operations, financial condition or
liquidity, and the development of the industry and markets in which
we operate, may differ materially from the forward-looking
statements contained in this release. In addition, even if our
results of operations, financial condition or liquidity, and events
in the industry and markets in which we operate, are consistent
with the forward-looking statements contained in this release, they
may not be predictive of results or developments in future
periods.
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 As recommended by SIFMA, April 2 was an official trading day
for U.S. Fixed Income markets—including U.S. Government bonds, U.S.
Credit and USD-denominated swaps. Therefore, there were 22 trading
days in April for those products, rather than 21. Using 21 trading
days would increase ADVs in those products by 4.8%.
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version on businesswire.com: https://www.businesswire.com/news/home/20210505005554/en/
Investor contact Ashley Serrao, Tradeweb + 1 646 430 6027
Ashley.Serrao@Tradeweb.com
Media contact Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
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