Tradeweb Reports 34% Trading Surge In October With Derivatives Reaching Highs

Tradeweb Markets had a strong October, trading a total of $54.7 trillion. The average daily trading volume (ADV) rose by 34.1% compared to last year, reaching $2.35 trillion each day. The company also saw growth in bond and derivatives trading, with more clients using the platform due to good market conditions and new trading tools.

ADV for U.S. government bonds increased 34.9% from last year to $220.8 billion, driven by record trades in Tradeweb’s institutional business and steady growth in wholesale and retail trades.

European Government Bond ADV Rose 26.3% To $53.4 Billion

In Europe, government bond trading also grew, with ADV rising 26.3% to $53.4 billion. The gains came as clients used the platform more and as market conditions were favorable.

Mortgage trading went up 28.2% to $248.6 billion each day. This was driven by strong dollar-roll activity and changes in interest rates.

Many specific pool lists were traded on the platform as well. However, daily trading of swaps and swaptions with terms of one year or more dropped 9.4%, mainly because of a 40% drop in compression activity. Even with this, rates of derivatives trading still grew 5.9% to $793.2 billion, as clients kept using Tradeweb’s request-for-market feature during market shifts.

In US credit markets, fully electronic trading grew by 32.7% to $7.4 billion daily, as more clients used the request-for-quote (RFQ) and portfolio trading options. Tradeweb gained a strong position in high-grade and high-yield bond markets. Credit derivatives trading rose by 13.0% to $13.6 billion per day, driven by active hedge funds and market uncertainty.

Repo Trading Volume Increased 28.7% To $678.4 Billion Daily

For ETFs, US trading fell 9.0% to $6.5 billion as investors slowed activity ahead of the election, while European ETF trading grew 10.8% to $2.8 billion as more clients used Tradeweb’s automated RFQ tools. Repo trading also saw growth, with daily volume up 28.7% to $678.4 billion.

More clients also used Tradeweb’s repo trading platform, pushing global repo activity higher. This growth came from higher funding rates, the Federal Reserve’s balance sheet changes, and more activity in money markets as investors prepared for possible future interest rate cuts.

Tradeweb Markets Inc. established in 1996, runs global online marketplaces for bonds, loans, stocks, and money markets. The firm offers access to markets, data, and easy trading tools, helping clients with trading and reporting. With more than 2,800 clients in over 70 countries, Tradeweb facilitated about $1.9 trillion in trades daily over the past year.