Tradeweb Markets Reveal April Trading Volumes Growing Nearly 70%
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Tradeweb Markets has provided its market data which shows a substantial 69.1% year-over-year rise in its trading volume. The company says its total trading volume reached $41.9 trillion and its average daily volume was $1.94 trillion in April.
The company has also revealed major growth in different sections of its business. For instance, trading in US government bonds went up by 70.7% compared to last year, reaching $205.3 billion.
European government bond trading also increased by 23.9%, reaching $45.6 billion. The growth in US government bond trading shows that all types of customers are involved in more trading activities.
The Addition Of r8fin Boosted Tradeweb’s Wholesale Volumes
Apart from that, the inclusion of r8fin has significantly influenced wholesale volumes. Strong new bond sales in Europe and the UK keep the trading volume high for European government bonds. Reporting on the credit sector, Tradeweb saw a 96.1% YoY increase in fully electronic US credit ADV, reaching $8 billion. European credit ADV experienced a major 19.4% rise in value to $2.3 billion.
The increase in US credit trading is because of numerous customers’ adoption, especially in request-for-quote, Tradeweb AllTrade, and portfolio trading. Meanwhile, European credit trading keeps growing because customers are using more tools for trading and trading sessions.
In the money markets sector, the average daily trading volume for repurchase agreements grew by 39.4% compared to last year, reaching $598.2 billion.
More clients using the electronic repo trading platform of Tradeweb led to a record amount of repo trading worldwide. Things like quantitative tightening seem to be the reasons why assets moved to money markets from the Federal Reserve’s reverse repo facility.
Tradeweb Records $408.7 Million In Total Revenue
Tradeweb saw major advancement in the first quarter of 2024. Its revenue reached $408.7 million, showcasing a remarkable 24.1% rise from the previous year. The major increase was driven by an increase in ADVs, which rose steeply to $1.9 trillion, signifying a 39.1% YoY increase.
Trading volumes for rates went up by 45% to $1.2 trillion. Also, the company made a good profit, with a modified EBITDA margin of 53.7% and a modified EBITDA of $219.5 million. Because of these good results, Tradeweb announced they’ll pay a quarterly cash dividend of $0.10 per share.
Meanwhile, the firm plans to purchase Institutional Cash Distributors, a provider of technology focused on serving corporate treasury organizations and institutional investment. The company will have to provide $785 million for the acquisition. The purchase aims to introduce new client channels and provide major cross-sell opportunities.
