Tradeweb Reports April 2024 Total Trading Volume of $41.9 Trillion and Average Daily Volume of $1.94 Trillion
May 06 2024 - 7:30AM
Business Wire
April 2024 ADV up 69.1% 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 the month of April
2024 of $41.9 trillion (tn)1. Average daily volume (ADV) for the
month was $1.94tn, an increase of 69.1 percent (%) year-over-year
(YoY).
In April 2024, Tradeweb records included:
- ADV in fully electronic U.S. High Grade credit
- Share of fully electronic U.S. High Grade TRACE
- ADV in global repurchase agreements
April 2024 Highlights
RATES
- U.S. government bond ADV was up 70.7% YoY to $205.3 billion
(bn). European government bond ADV was up 23.9% YoY to $45.6bn.
- U.S. government bond volumes were supported by growth across
all client sectors. Increased adoption across a wide range of
protocols and favorable market conditions contributed to the
increase in volume. The addition of r8fin continues to contribute
positively to wholesale volumes. Robust primary issuance across
Europe and the UK helped drive trading volume in European
government bonds.
- Mortgage ADV was up 34.8% YoY to $206.1bn.
- The continuation of elevated roll activity, together with a
spike in volatility, contributed to higher ADV on our
To-Be-Announced (TBA) platform, while increased client adoption
contributed to strong volumes in specified pool trading.
- Swaps/swaptions ≥ 1-year ADV was up 118.9% YoY to $475.7bn and
total rates derivatives ADV was up 127.8% YoY to $796.0bn.
- 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 137% increase in compression
activity which carries a lower FPM. Quarter to date compression
activity is trending lower than 1Q24. 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 96.1% YoY to $8.0bn and
European credit ADV was up 19.4% YoY to $2.3bn.
- Higher U.S. credit volumes were driven by increased client
adoption, most notably in request-for-quote (RFQ), portfolio
trading and Tradeweb AllTrade®. Tradeweb captured a record 19.7%
share of fully electronic U.S. High Grade TRACE, and 7.3% share of
fully electronic U.S. High Yield TRACE. Increases in European
credit volumes were driven by continued client adoption of
portfolio trading, unique dealer selection tools (SNAP IOI) and
session-based trading.
- Municipal bonds ADV was up 20.8% YoY to $347 million (mm).
- Volumes outpaced the broader market, which was up roughly 6%
YoY2. Institutional and retail activity was strong, with robust
buyside activity amidst active issuance.
- Credit derivatives ADV was up 65.0% YoY to $15.3bn.
- Increased credit volatility and credit default swap indices
(CDX) roll trading led to increased swap execution facility (SEF)
and multilateral trading facility (MTF) credit default swaps
activity.
EQUITIES
- U.S. ETF ADV was up 24.8% YoY to $7.8bn and European ETF ADV
was up 19.4% YoY to $2.8bn.
- U.S. and European institutional ETF volumes continued to grow
as more clients embraced Tradeweb’s electronic RFQ protocol. U.S.
wholesale ETF volumes also increased as the customer base continued
to expand.
MONEY MARKETS
- Repurchase agreement ADV was up 39.4% YoY to $598.2bn.
- Increased client activity on Tradeweb’s electronic repo trading
platform drove record 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 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 50 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 more than 2,500 clients in more than 70
countries. On average, Tradeweb facilitated more than $1.5 trillion
in notional value traded per day over the past four fiscal
quarters. For more information, please go to www.tradeweb.com.
Basis of Presentation All reported amounts are presented
in U.S. dollars, unless otherwise indicated. In determining the
reported U.S. dollar amounts for non-U.S. dollar denominated
securities, the non-U.S. dollar amount for a particular month is
translated into U.S. dollars based on the monthly average foreign
exchange rate for the prior month. Volumes presented in this
release exclude volumes generated by (i) unbilled trial agreements,
(ii) products billed on an agreement basis where we do not
calculate notional value, and (iii) products that are not rates,
credit, equities or money markets products. Please see the
footnotes on page 3 of the full report for information regarding
how we calculate market share amounts presented in this
release.
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 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 events or performance and future events, 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 future events, 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 events, 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 Tradeweb acquired Yieldbroker on August 31, 2023 and r8fin on
January 19, 2024. Total volume reported includes volumes from each
acquired business subsequent to the date of the applicable
acquisition.
2 Based on data from MSRB
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240506802046/en/
Media: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor: Ashley Serrao, Tradeweb +1 646 430 6027
Ashley.Serrao@Tradeweb.com
Sameer Murukutla, Tradeweb +1 646 767 4864
Sameer.Murukutla@Tradeweb.com
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