Tradeweb Reports Volume of $23.1 Trillion in June and $62.0 Trillion in Second Quarter
July 07 2021 - 7:30AM
Business Wire
June ADV up 34.7% year over year; second
quarter ADV up 25.5% year over year
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 June 2021 of $23.1
trillion (tn). Average daily volume (ADV) for the month was
$1.05tn, an increase of 34.7 percent (%) year over year (YoY). For
the second quarter of 2021, total trading volume was $62.0tn and
ADV was $976.9 billion (bn), an increase of 25.5% YoY, with
preliminary average variable fees per million dollars of volume
traded of $2.70 (see pg.7 of the pdf for the detailed breakdown of
each underlying asset class).
In U.S. Credit, Tradeweb’s share of both fully electronic High
Grade and High Yield TRACE reached a record for the firm of 13.1%
and 5.4%, respectively, during the month of June. Activity in U.S.
High Grade and European credit was driven by record activity in
portfolio trading, while U.S. High Yield volumes were boosted by
record activity in Tradeweb AllTrade. In U.S. Treasuries, ADV was a
record as client activity of sessions-based trading reached a
monthly record and usage of streams liquidity during June reached
its second-highest level; this record was exclusive of the recently
closed purchase of the Nasdaq Fixed Income business. Emerging
Markets interest rate swaps activity also reached a platform
record.
For the second quarter of 2021, Tradeweb's share of fully
electronic TRACE volume was 12.1% for U.S. High Grade, up from 5.8%
in the second quarter of 2020, and 4.8% for U.S. High Yield, up
from 1.5% over the same period last year. ADVs in both U.S. High
Yield and Repurchase Agreements at Tradeweb were also records for
the quarter.
Lee Olesky, Tradeweb CEO, said: “We see client usage of new and
legacy Tradeweb protocols and services continuing to evolve. Our
diverse approach was on full display in June, as new records were
set in key products across credit, rates and equities. We also saw
continued momentum in U.S. credit, capturing record market share
and effectively occupying a larger slice of what’s been a growing
pie.”
June Highlights
RATES
- U.S. government bond ADV was up 24.6% YoY to $119.4bn1, and
European government bond ADV was up 14.1% YoY to $32.1bn.
- Client uptake of innovative protocols continued apace, with
growing adoption of streams and sessions-based trading. Steady
global government bond issuance remained supportive of trading
generally despite waning market volatility.
- Mortgage ADV was up 4.1% YoY to $175.3bn.
- Client activity in specified pools on the institutional
platform continued to grow. Fed open market purchases remained
supportive of the overall market.
- Swaps/swaptions ≥ 1-year ADV was up 38.9% YoY to $205.6bn, and
total rates derivatives ADV was up 50.6% YoY to $308.1bn.
- Swaps/swaptions ≥ 1-year volumes were driven by a combination
of factors including continued engagement from international
clients, faster growth in the request-for-market (RFM) protocol,
and record emerging markets trading.
CREDIT
- U.S. Credit ADV was up 17.8% YoY to $6.0bn and European credit
ADV was up 43.7% YoY to $2.1bn.
- Clients used a range of protocols and services, with continued
strong growth in RFQ trading, as electronic credit trading globally
continued to evolve. Month-end activity was particularly elevated.
U.S. High Grade TRACE market share was a Tradeweb record of 21.4%
(13.1% fully electronic), with record volumes executed via
portfolio trading. TRACE High Yield market share was also a record
of 8.6% (5.4% fully electronic), with record volumes executed via
Tradeweb AllTrade. In Europe, clients executed record volume via
portfolio trading.
- Credit derivatives ADV was down 30.6% YoY to $7.5bn.
- Declining market volatility continued to weigh on overall
market activity. Overall market SEF volumes were at their lowest
levels of the year.2
EQUITIES
- U.S. ETF ADV was up 13.9% YoY to $5.5bn and European ETF ADV
was up 18.4% YoY to $2.4bn.
- Client growth and adoption, particularly among institutional
clients, continued to drive volumes in U.S. and European
markets.
MONEY MARKETS
- Repurchase Agreement ADV was up 53.6% YoY to $366.4bn.
- Strong growth in Global Repo activity was supported by the
continued addition of new clients on the platform. Retail money
markets activity remained pressured by the low interest rate
environment.
For the complete report 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 $920 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. In particular, preliminary average
variable fees per million dollars of volume traded are subject to
the completion of management’s final review and our other financial
closing procedures and therefore are subject to change. 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 For the three days beginning on June 28, 2021, U.S. government
bonds volumes include wholesale U.S. Treasury volumes from the
Nasdaq Fixed Income business Tradeweb acquired on June 25, 2021. 2
Based on data from Clarus Financial Technology.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210707005473/en/
Media contact Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor contact Ashley Serrao, Tradeweb +1 646 430 6027
Ashley.Serrao@Tradeweb.com
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