Tradeweb’s September Volume Jumps 68% With Rates And Credit Leading

Tradeweb Markets did very well in September, hitting a record total of $56.1 trillion in trading. During Q3, the electronic marketplace showed great numbers because of an increase in the number of trades.

In September, the average daily volume stood at $2.63 trillion, showing an increase of 68.3% from the preceding year. This was part of the full third-quarter performance, where the ADV hit $2.21 trillion, a surge of 55.3% from the previous year.

Mortgage Trading Saw An ADV Of $240.2 Billion, A Growth Of 32.3%

The rates section, which is an important part of Tradeweb’s business, grew a lot. The ADV for US government bonds went up by 59.8% from last year, reaching $232.2 billion. This increase was because of the strong activities of major companies and regular investors in the market.

European government bonds also saw massive growth. The ADV increased by 16.7% from last year, thanks to more trading in UK Gilt bonds. The volume of mortgage trading also hit its highest point, with ADV increasing to $240.2 billion, a 32.3% rise compared to the previous year. This was helped by changes in the market during the Federal Reserve’s meeting in September.

The swaps and swaptions part of Tradeweb grew the most in the rates category. The average daily volume for swaps and swaptions lasting at least a year jumped to $576.3 billion, a 73.1% increase from last year.

The complete rate derivatives ADV increased by 79.1% to $1.02 trillion. These high numbers were due to market changes, especially from central banks and traders were looking for ways to protect themselves.

The company’s credit trading volumes saw a lot of growth too. Fully electronic US credit ADV increased to $8.6 billion, showing a rise of 77% from last year. European credit ADV also rose to $2.7 billion, an increase of 27.9% compared to the previous year.

The increase was due to high trading activity in European portfolio trading and more people using the request-for-quote model. Municipal bonds also did well, with ADV reaching $385 million, showing an increase of 7.7%, beating other market trends.

Repo Volumes Saw A Big Rise Due To Market Changes And More Collateral

Credit derivatives saw an increase, too, with a 49.9% rise to $54.9 billion in September. The growth in hedge fund activity and changes in credit markets helped raise volumes in swap execution and multilateral trading facilities.

The equities section grew as well. The ADV for US ETFs reached $7.6 billion, an increase of 2.7%, and European ETFs rose by 39.8% to $3.1 billion. A wide variety of clients used new trading options, which helped this growth.

Repo volumes saw a big rise. This was due to a mix of factors like quantitative tightening, more available collateral, and the current market situation. Many participants moved from the Fed’s reverse repo system to money markets, leading to more trading activity.