Tradeweb reports increased adoption of automated ETF trading in Europe

Notional volume executed on the Tradeweb European-listed ETF marketplace reached EUR18.23 billion in July, achieved, the firm writes, against a background of geopolitical risk concerns.

During the month, more than one third of all European ETF transactions were processed via Tradeweb’s Automated Intelligent Execution (AiEX) tool.
Adriano Pace, head of equities (Europe) at Tradeweb, says: “The average trade size conducted on the platform was EUR1.6 million in July, down from EUR2 million in the previous month, as a result of the traditional summer slowdown. However, buy-side clients benefited from faster responses to their trade enquiries, a clear indication of the increased adoption of automated trading by ETF-investing firms.”
Commodity-based products were the only ETFs to see net selling in July, with 69 per cent of trading activity in the asset class attributed to ‘sells’. Meanwhile, overall activity in equity ETFs amounted to 61 per cent of the total platform flow, two percentage points lower than the previous 12-month rolling average. Fixed income ETFs were strongly bought, with ‘buys’ surpassing ‘sells’ by 22 percentage points.

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Beverly Chandler
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