September 2024 ADV up 68.3% YoY
Third Quarter 2024 ADV up 55.3% YoY
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today reported record total trading volume for the month
of September 2024 of $56.1 trillion (tn)1. Average daily volume
(ADV) for the month was a record $2.63tn, an increase of 68.3
percent (%) year-over-year (YoY).2 For the third quarter of 2024,
total trading volume was a record $147.5tn and ADV was a record
$2.21tn, an increase of 55.3% YoY, with preliminary average
variable fees per million dollars of volume traded of $2.29.3
Excluding the impact of the ICD acquisition, which closed on August
1, 2024, total ADV for the month of September was up 50.3% YoY and
total ADV for the third quarter of 2024 was up 42.7% YoY.
Tradeweb CEO Billy Hult said: "Looking at trading volume for the
third quarter of 2024, this was our best quarter ever with record
volumes in multiple asset classes. Average daily volume for the
quarter climbed more than 55% YoY to a record $2.21tn (September
ADV was up more than 68% YoY to a record $2.63tn), reflecting
strong organic growth and solid contributions from our acquisitions
of Yieldbroker, r8fin, and ICD. As the leading electronic trading
marketplace for U.S. Treasuries and a global leader in swaps, we
remained focused on growing market share while also benefiting from
rates market volatility around central bank moves. Momentum in
credit volumes also remained strong, with record ADV for the
quarter in fully electronic U.S. high yield credit and record ADV
for September in fully electronic U.S. high grade credit. The third
quarter for Tradeweb culminated with broadly strong volumes in
September reflecting continued momentum across asset classes.”
In September 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in fully electronic U.S. high grade credit
- ADV in credit derivatives
- ADV in global repurchase agreements
For the third quarter of 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in fully electronic U.S. high yield credit
- ADV in credit derivatives
- ADV in global repurchase agreements
September 2024
Highlights
RATES
- U.S. government bond ADV was up 59.8% YoY to $232.2 billion
(bn). European government bond ADV was up 16.7% YoY to $49.5bn.
- Record U.S. government bond volumes were supported by record
ADV in our institutional business, as well as strong growth in
wholesale and retail volumes. 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. European government
bonds reported strong double-digit volume growth, largely driven by
a 30% YoY increase in UK Gilts activity. We continued to see an
increased number of clients utilizing a variety of trading
protocols on the platform.
- Mortgage ADV was up 32.3% YoY to $240.2bn.
- Strong activity was driven by heightened volatility surrounding
a pivotal September Fed meeting. Specified pool volumes reached a
new record, surpassing the previous peak in August, driven by
robust trading activity.
- Swaps/swaptions ≥ 1-year ADV was up 73.1% YoY to $576.3bn and
total rates derivatives ADV was up 79.1% YoY to $1.02tn.
- Strong volume in swaps/swaptions was driven by strong client
demand around the September Fed meeting. Market volatility and
hedging needs continued to be a focus across the overall market.
Compression activity, which carries a lower fee per million,
increased 95% YoY. 3Q24 compression activity as a percentage of
swaps/swaptions was lower than 2Q24. Clients continued to utilize
the request-for-market (RFM) protocol for risk transfers. Emerging
markets swaps growth remained strong.
CREDIT
- Fully electronic U.S. credit ADV was up 77.0% YoY to $8.6bn and
European credit ADV was up 27.9% YoY to $2.7bn.
- U.S. credit volumes were driven by increased client adoption,
most notably in request-for-quote (RFQ), portfolio trading and
Tradeweb AllTrade®. Tradeweb captured 18.1% and 7.4% of fully
electronic U.S high grade and U.S. high yield TRACE, respectively,
as measured by Tradeweb. European credit volumes were driven by
record volumes in European portfolio trading and increased adoption
of RFQ YoY.
- Municipal bonds ADV increased by 7.7% YoY to $385 million (mm).
- Volume growth outpaced the broader market, which was flat YoY,
led by strong retail activity which increased 10.4% YoY.
- Credit derivatives ADV was up 49.9% YoY to $54.9bn.
- 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
- U.S. ETF ADV was up 2.7% YoY to $7.6bn and European ETF ADV was
up 39.8% YoY to $3.1bn.
- U.S. institutional ETF volumes were up 25.3% YoY and European
institutional ETF volumes were up 40.2% YoY, driven by a wide range
of clients using an expanded set of trading functionalities across
both platforms.
MONEY MARKETS
- Repo ADV was up 28.6% YoY to $681.0bn.
- A continued increase in client activity on Tradeweb’s repo
trading platform drove record global repo activity, led by record
U.S. repo activity and growth in EMEA repo activity. The
combination of quantitative tightening, increased collateral
supply, and current rates market activity shifted more assets from
the Fed’s reverse repo facility to money markets. Retail money
markets activity remained strong as the Fed cut rates in
September.
- Other Money Markets ADV was up YoY to $302.5bn.
- Other money markets volume growth was driven by the inclusion
of ICD volumes in September 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 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, retail and corporates 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 2,800 clients in more than 70 countries. On
average, Tradeweb facilitated more than $1.9 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 generally 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, r8fin and ICD on August 31,
2023, January 19, 2024 and August 1, 2024, respectively. Total
volume reported includes volumes from each acquired business
subsequent to the date of the applicable acquisition.
2 Beginning on August 1, 2024, volumes for other money markets
includes cash invested in funds through the ICD Portal, with
volumes determined based on the sum of the daily dollar amount of
cash balances invested in the funds on each date within the
respective month, including any cash amounts invested by Tradeweb
via the ICD Portal. The ADV for volumes relating to ICD represents
the average daily balance (ADB) of cash invested through the ICD
Portal, averaged over each calendar day in the period.
3 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/20241004891396/en/
Media contact: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor contacts: 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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