ETF marketplace provider, Tradeweb Markets, reports a record volume of USD7.9 trillion in November, the most active month of trading across its platforms since the credit crisis.
The firm writes that Tradeweb volumes and trade counts peaked in the two days following the election, but showed sustained activity across a wide range of asset classes, market participants, and on- and off-the-run securities over the following weeks. On the Tradeweb Institutional platform, the growth represents a 32 per cent increase in November trading volume to USD5.1 trillion year-over-year.
"Trading volumes have continued to increase on our platforms throughout November, beginning with volatility immediately around the election," says Lee Olesky, (pictured), Tradeweb Markets CEO. "While bond markets have fallen significantly in recent weeks, we are seeing widespread increases in activity across all types of institutions, and in all ranges of maturities."
Macro products comprised the majority of Tradeweb Institutional trading in November 2016, led by mortgage backed securities, government bonds, and interest rate derivatives. And products that saw 2016 volume highs in November across many of its 20+ asset classes included US Treasuries; US and European ETFs; European Government Bonds; European Repo; US Investment Grade and High Yield Credit and Japanese Government Bonds.
Olesky adds: "This could be the beginning of a long-term change in market behaviour, with the continued likelihood of rising interest rates, possible policy shifts from the Fed, and new expectations for inflation. If the broader asset management community is restructuring their portfolios over the next year, we may see growing trading volumes in light of increased volatility and shifts in fundamental investing strategies."
Tradeweb Markets also operates wholesale and retail marketplaces with Dealerweb and Tradeweb Direct, which saw significant increases in trading in November. Combined with institutional volumes, Tradeweb Markets Overall volume reached its highest level since the credit crisis with USD7.9 trillion traded in November.