Tradeweb reports strong July with record US institutional ETF activity

Tradeweb has reported total trading volume for July 2021 of USD20.6 trillion across rates, credit, equities and money markets. Average daily volume (ADV) for the month was USD972.2 billion, an increase of 34.2 per cent year over year (YoY).

Lee Olesky, Tradeweb CEO, says: “Tradeweb’s diversified growth continued in July, with strong year-over-year volume gains in government bonds, swaps, credit and repos. Our credit volumes were higher in the US and Europe, and in US High Yield we captured record market share as more clients were active in anonymous and portfolio trading.”

In terms of ETFs, US ETF ADV was up 89.4 per cent YoY to USD6.2 billion and European ETF ADV was up 43.9 per cent YoY to USD2.5 billion, with Tradeweb noting that client growth and adoption, particularly among institutional clients, continued to drive volumes in US and European markets, with record US institutional ETF activity.

In US Credit, Tradeweb captured a record 9.9 per cent share of High Yield TRACE, of which 6.4 per cent was fully electronic. Activity was driven by record share in portfolio trading and Tradeweb AllTrade, with strong growth in both sessions-based and RFQ trading. 

US government bond ADV was up 38.7 per cent YoY to USD116.1bn, and European government bond ADV was up 25.0 per cent YoY to USD29.5bn.

Client use of innovative protocols continued apace, as client adoption of streaming liquidity and sessions-based trading increased. Additionally, July was the first full month of reporting to include Tradeweb’s newly acquired CLOB. Steady global government bond issuance, along with recent rising market volatility, remained supportive of trading generally.

Mortgage ADV was down 0.4 per cent YoY to USD190.0bn.

A notable decline in issuance and discussions of the eventual tapering of Fed open market purchases weighed on overall market activity. Client activity in specified pools on the institutional platform continued to show strong growth.

Swaps/swaptions ≥ 1-year ADV was up 72.4 per cent YoY to USD151.3bn, and total rates derivatives ADV was up 68.1 per cent YoY to USD240.5bn.

Swaps/swaptions ≥ 1-year volumes were driven by continued engagement from international clients; faster growth in the request-for-market (RFM) protocol; and further growth in emerging markets trading.

US Credit ADV was up 20.1 per cent YoY to USD5.1bn and European credit ADV was up 63.5 per cent YoY to USD1.9bn.

In July, client use of Tradeweb AllTrade protocols reached new highs in TRACE share with strong growth in both sessions-based and RFQ trading across US High Grade and US High Yield. US High Grade TRACE market share was 20.2 per cent (12.0 per cent fully electronic). US High Yield TRACE market share was a record of 9.9 per cent (6.4 per cent fully electronic), with record volumes executed via portfolio trading. In Europe, clients executed record volume via portfolio trading.

Credit derivatives ADV was up 22.4 per cent YoY to USD7.5bn.

Recent rising volatility provided a boost to overall market activity.

Repurchase Agreement ADV was up 38.9 per cent YoY to USD345.1bn.

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

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