January proved to be a record-breaking month for the Tradeweb European ETF marketplace, with total traded volume just shy of EUR20 billion, up 12 per cent from the platform’s previous best performance in May 2017.
The share of European ETF transactions processed via Tradeweb’s Automated Intelligent Execution tool (AiEX) remained high at 29 per cent.
Adriano Pace, managing director for equity derivatives at Tradeweb, says: “Against a backdrop of sweeping regulatory reform and heightened market volatility, more than 93 per cent of trade enquiries resulted in completed transactions, which attests to the strong pricing our clients receive on the platform.”
Pace adds: “2018 promises to be a very exciting year for European ETFs. The new reporting requirements under MiFID II will provide investors with much-needed visibility into ETF trading activity, enabling them to better gauge the full depth of the market.”
Both equity and fixed income ETFs saw net buying in January. ‘Buys’ in commodity ETFs matched ‘sells’ at 3 per cent each, as a proportion of the overall platform flow. Europe Equities was the most heavily-traded ETF category with notional volume surpassing EUR4 billion; it was also the only stocks-based sector to see net selling during the month.