ETF trading platform Tradeweb has reviewed its experience of 2015 and reports that it experienced a total traded volume of EUR112.8 billion, up 84 per cent from 2014.
The number of ETF instruments traded increased to 1,927 from 1,685 the year before, and overall, the proportion of ETF trades executed by integrated clients climbed to 70 per cent in 2015, up 17 percentage points from 2014.
Fixed income products accounted for approximately one third of the overall platform activity. The firm writes that quarter over quarter, activity in fixed income ETFs maintained an upward trend during the year: in Q4 2015 an additional EUR2 billion was traded in the products compared to the first quarter.
Last year, Tradeweb joined forces with BlackRock, State Street and others to develop a standardised method of calculating key metrics for fixed income ETFs, identical to those for their underlying bonds. Yield and duration analytics for bond ETFs went live on Tradeweb in October 2015, with spread metrics to follow in 2016.
Tradeweb explains that in Q1 2015 the platform added axes functionality, which provides an indication of whether a dealer is a buyer or seller of a specific ETF. The launch proved highly successful, as the proportion of completed trades increased by 5 percentage points when RFQs were sent to axed dealers.
Trading on the platform resulted in a saving of 3.2 basis points compared to the Exchange best bid/offer, Tradeweb says.
iShares was the top ETF issuer on the platform, followed by DB X-Trackers and Amundi. Three fixed income ETFs were among the ten most heavily traded instruments on the platform during the year. However, the Amundi ETF MSCI EMU UCITS fund offering exposure to European equities was ranked first.