Tradeweb Reports September Total Trading Volume of $18.5 Trillion
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 September of $18.5 trillion (tn). Average daily volume (ADV) for the month of September was $870.5 billion (bn), down 0.5 percent (%) year over year (YoY). For the third quarter of 2020, Tradeweb reported ADV of $780.3bn, down 4.5% YoY, and preliminary average variable fees per million dollars of volume traded of $2.47.
Strong growth in Credit, Equities and Money Markets continued in September with monthly ADV up more than 15% YoY in all three asset classes. Active issuance continued to promote strong secondary bond trading across fixed income markets, while activity around September ‘rolls’ helped buoy rates and credit derivatives monthly volume. For Q3, Tradeweb captured record TRACE market share in U.S. High-grade and U.S. High-yield bonds, while quarterly ADV records were set in repos and China bonds.
“Tradeweb’s strong performance in September was broad-based, spanning multiple asset classes and fueled in part by increased adoption across trading protocols,” said Tradeweb CEO Lee Olesky. “One example of that horizontal expansion was credit, where we saw greater interest and adoption in electronic portfolio trading, anonymous A2A trading and automated execution. Each offers a unique way to trade, and they all help our clients do more with less.”
- U.S. government bond ADV was up 1.9% YoY to $90.0bn, and European government bond ADV was up 6.8% YoY to $27.1bn.
- Trading activity in U.S Treasury bills and bonds remained robust. Global government bond issuances remained elevated, supporting secondary market trading.
- Mortgage ADV was down 0.5% YoY to $196.8bn.
- Low mortgage rates continued to drive new home sales and refinancing activity continued to drive origination, furthering trends from this past summer. Trading conditions mirrored those of last September when the Fed cut interest rates.
- Rates derivatives ADV was down 17.8% YoY to $239.0bn.
- Market share gains helped partially offset continued low volatility, as longer tenor swaps (≥1 year) remained more resilient than short tenor swaps.