Tradeweb has published its monthly activity report for July, which captures trading volume executed on Tradeweb across its fixed income, derivatives and ETF marketplaces.
July 2018 saw average daily volume (ADV) in European ETFs of USD1 billion decreased 25.5 per cent MoM and increased 36.4 per cent YoY. July 2018 ADV in U.S. ETFs of USD1.9 billion declined 35.5 per cent MoM and rose 28.7 per cent YoY.
Tradeweb writes that other trends included a strong year for electronic trading venues with, through July of 2018, year-to-date trading volume on the Tradeweb platform up 40 per cent, putting the firm on pace for a record year of trading activity in 2018.
Derivatives have posted strongest growth, Tradeweb says. “A great deal of this growth is being driven by activity in rates derivatives, which have seen their July 2018 average daily volumes (ADV) increase 158.4 per cent year over year.”
Tradeweb has also seen volumes climb in credit and equity derivatives. “Global equity derivatives ADV is also up 351.55 per cent and global credit derivatives volume is up 80.16 per cent year over year on the Tradeweb platform,” the firm writes.
Corporate and municipal debt trading activity executed by financial advisers and RIAs has shifted to shorter maturities, with 26 per cent of ADV now focused on one to three-year maturity securities, up from 21 per cent a year ago.
While year-to-date volumes continue to surge, monthly volumes for July did slow vs. June totals. The slow-down was most pronounced in the first half of the month, which was punctuated by a mid-week Independence Day holiday in the US and eight mid-week World Cup games.
As evidence of the estimated impact, ADV of US Treasuries rose 15.6 per cent and US High-Grade Credit increased 46.6 per cent on Tradeweb platforms in the second half of July.