Tradeweb reports new records in key products

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Tradeweb has reported total trading volume for June 2021 of USD23.1 trillion. Average daily volume (ADV) for the month was USD1.05 trillion, an increase of 34.7 per cent year over year (YoY). For the second quarter of 2021, total trading volume was USD62.0 trillion and ADV was USD976.9 billion, an increase of 25.5 per cent YoY, with preliminary average variable fees per million dollars of volume traded of USD2.70.

In US Credit, Tradeweb’s share of both fully electronic High Grade and High Yield TRACE reached a record for the firm of 13.1 per cent and 5.4 per cent, respectively, during the month of June. Activity in US High Grade and European credit was driven by record activity in portfolio trading, while US High Yield volumes were boosted by record activity in Tradeweb AllTrade. In U.S. Treasuries, ADV was a record as client activity of sessions-based trading reached a monthly record and usage of streams liquidity during June reached its second-highest level; this record was exclusive of the recently closed purchase of the Nasdaq Fixed Income business. Emerging Markets interest rate swaps activity also reached a platform record.

For the second quarter of 2021, Tradeweb's share of fully electronic TRACE volume was 12.1 per cent for US High Grade, up from 5.8 per cent in the second quarter of 2020, and 4.8 per cent for US High Yield, up from 1.5 per cent over the same period last year. ADVs in both US High Yield and Repurchase Agreements at Tradeweb were also records for the quarter.

Lee Olesky, Tradeweb CEO, says: “We see client usage of new and legacy Tradeweb protocols and services continuing to evolve. Our diverse approach was on full display in June, as new records were set in key products across credit, rates and equities. We also saw continued momentum in US credit, capturing record market share and effectively occupying a larger slice of what’s been a growing pie.”

US government bond ADV was up 24.6 per cent YoY to USD119.4 billion, and European government bond ADV was up 14.1 per cent YoY to USD32.1 billion.
Client uptake of innovative protocols continued apace, with growing adoption of streams and sessions-based trading. Steady global government bond issuance remained supportive of trading generally despite waning market volatility.

Mortgage ADV was up 4.1 per cent YoY to USD175.3 billion.

Client activity in specified pools on the institutional platform continued to grow. Fed open market purchases remained supportive of the overall market.

Swaps/swaptions ≥ 1-year ADV was up 38.9 per cent YoY to USD205.6 billion, and total rates derivatives ADV was up 50.6 per cent YoY to USD308.1 billion.

Swaps/swaptions ≥ 1-year volumes were driven by a combination of factors including continued engagement from international clients, faster growth in the request-for-market (RFM) protocol, and record emerging markets trading.

US Credit ADV was up 17.8 per cent YoY to USD6.0 billion and European credit ADV was up 43.7 per cent YoY to USD2.1 billion.

Clients used a range of protocols and services, with continued strong growth in RFQ trading, as electronic credit trading globally continued to evolve. Month-end activity was particularly elevated. US High Grade TRACE market share was a Tradeweb record of 21.4 per cent (13.1 per cent fully electronic), with record volumes executed via portfolio trading. TRACE High Yield market share was also a record of 8.6 per cent (5.4 per cent fully electronic), with record volumes executed via Tradeweb AllTrade. In Europe, clients executed record volume via portfolio trading.

Credit derivatives ADV was down 30.6 per cent YoY to USD7.5 billion.

Declining market volatility continued to weigh on overall market activity. Overall market SEF volumes were at their lowest levels of the year.

US ETF ADV was up 13.9 per cent YoY to USD5.5bn and European ETF ADV was up 18.4 per cent YoY to USD2.4 billion.

Client growth and adoption, particularly among institutional clients, continued to drive volumes in US and European markets.

Repurchase Agreement ADV was up 53.6 per cent YoY to USD366.4 billion.

Strong growth in Global Repo activity was supported by the continued addition of new clients on the platform. Retail money markets activity remained pressured by the low interest rate environment.

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