Tradeweb reports record June
Tradeweb reports that, over June, average daily volume exceeded USD590 billion, a 45 per cent increase from June 2017.
The average daily volume for 2Q18 was USD540 billion vs USD380 billion for 2Q17.
Tradeweb reports the following notable trends within that trading volume:
• Fixed income and derivatives volume surges post-MiFID: Volume growth in June was driven by a significant jump in rates derivatives activity, which is up 144 per cent YoY and 100 per cent since just before the start of MiFID II (December 2017). The first six months of MiFID II have seen noticeable increases in European Government Bonds, Corporate Bonds, and ETF activity. EGBs are up 45 per cent, European Corporate Bonds up 51 per cent, and European ETFs are up 59 per cent vs 1H17. Over EUR2 trillion European Government Bond traded in 1H18, the first time this milestone has been reached in a half.
• Repo roars back to pre-reform levels: Repo activity continues to grow at Tradeweb Markets, with volumes up 30 per cent vs June 2017. Activity is back at levels last seen in 2010.
• Chinese bond activity surges following Bond Connect launch: Chinese bond volumes averaged USD1 billion per day in June and surpassed USD100 billion since the launch of Bond Connect.
• Tradeweb US Credit Platform volume doubles YTD, EU Volume Up 50 per cent: USHG Credit volume on the Tradeweb US credit platform represented 8.1 per cent of total TRACE volume for 1H18 vs. 4.6 per cent of TRACE in 1H17.
• Institutional trading of ETFs continues to grow in US and EU: European ETF averaged USD1.3 billion in June, up 115 per cent vs. June 2017. US ETF volumes up 65 per cent vs. June 2017.