Average daily volume of USD910.8 billion in October marks Tradeweb's second-highest month ever

Tradeweb has reported total trading volume for October of USD19.4 trillion (tn). Average daily volume (ADV) during the month was USD910.8 billion ( billion), up 28.8 per cent year over year (YoY) and represents Tradeweb’s second-highest month ever.

Tradeweb CEO Lee Olesky says: “Tradeweb’s strategic focus on growing our credit trading platform continued to show stellar results in the US and Europe, including both higher trading volumes and stronger adoption across a wide array of trading tools and protocols. Our solid performance also extended beyond credit, as US Treasuries, European Govies and Mortgages benefitted from higher issuance and Repos saw a boost thanks to new dealers and participants trading on our platform.”

Tradeweb captured record TRACE share in US High Grade of 19.2 per cent (including 9.4 per cent fully electronic) and record TRACE share in US High Yield of 5.9 per cent (including 3.6 per cent fully electronic). Monthly ADV records were set in US High Yield and Repurchase Agreements, as well as portfolio trading.

US government bond ADV was up 7.6 per cent YoY to USD83.9 billion, and European government bond ADV was up 34.0 per cent YoY to USD27.3 billion.

Trading activity in US Treasuries continued apace, with increased activity executed via firm streams by institutional and wholesale clients. Higher global government bond issuances, the US election and rising volatility all contributed to robust secondary trading.

Mortgage ADV was up 20.7 per cent YoY to USD215.0 billion.

Low mortgage rates continued to support new home sales and refinancing activity continued to drive origination, furthering trends that began this past summer.

Rates derivatives ADV was up 3.8 per cent YoY to USD208.4 billion.

Macro uncertainty helped drive higher volumes. As the market shifted to alternative risk-free rates (RFRs) from Libor based rates, this drove a new record in trading of those swaps. In particular, we saw a noted rise in SOFR trading this month, with tenors out to 10 years. 

US credit ADV was up 47.8 per cent YoY to USD5.2 billion and European credit ADV was up 16.5 per cent YoY to USD1.6 billion.

Electronic Portfolio trading and anonymous sessions-based trading were particularly strong in both US and European credit, with record volumes in portfolio trading in both regions. US Credit set new records in TRACE High Grade market share to 19.2 per cent (9.4 per cent fully electronic) and TRACE High Yield market share to 5.9 per cent (3.6 per cent fully electronic). Additionally, new RFQ functionality with trader-controlled AiEX auto execution saw swift adoption.

Credit derivatives ADV was up 19.0 per cent YoY to USD11.8 billion.

More pronounced macro risk, along with continued rolling activity, contributed to increased trading volumes.

US ETF ADV was up 104.3 per cent YoY to USD4.7 billion and European ETF ADV was up 25.2 per cent YoY to USD1.8 billion.

Sharp fluctuations in equity markets and continued new client adoption contributed to growth across our US ETF business.

Repurchase Agreement ADV was up 78.4 per cent YoY to USD328.5 billion, while retail money markets activity remained pressured by the low interest rate environment.

Global Repo activity set a new record, exceeding an ADV of USD300 billion, driven in part by the addition of new dealers and participants on our global institutional Repo platform.