Tradeweb has reported average daily volumes of USD592.4 billion for the month of September 2018, a 27.5 per cent increase over the same period in 2017 and a 19.5 per cent increase over August 2018 totals.
This is the highest monthly volume ever recorded by Tradeweb. Year-to-date trading volume has now surpassed the USD100 trillion mark, topping Tradeweb’s total volume for 2017.
Average daily volume in European ETFs of USD1.1 billion increased 20.6 per cent month-over-month and 45.9 per cent year-over-year. Average daily volume in USETFs of USD2.9 billion rose 52.9 per cent month-over-month and 29.5 per cent year-over-year.
Tradeweb’s record September volumes were fuelled in large part by a 24.7 per cent year-over-year increase in US Government Bond trading volume and a 20.3 per cent year-over-year increase in European Government Bond trading volume. This surge coincided with increasing government bond yields in the US and Europe. The US 5 Year Treasury bond hit 2.98 per cent, its highest level since September 2008, the UK 10 Year Gilt rose to 1.63 per cent and the Italian 10 Year BTP finished the month closing up 27 basis points in a single day.
Average daily trading volume in US high-grade credit crested the USD2 billion/day threshold for the first time in September, with Tradeweb’s fully electronic high-grade volumes representing 3.8 per cent of total TRACE volume for the month. The growth of trading in repurchase agreements (Repo) continued its recent growth trend, setting a record of USD164.5 billion in average daily volume on Tradeweb, the highest volume recorded since 2011.
Tradeweb’s AiEX (Automated Intelligent Execution) accounted for a meaningful percentage of activity in the institutional markets for US Treasuries, European government bonds, US high-grade, European credit, and US and European ETFs. The adoption of automated trading is most pronounced in the ETF market, where 40 per cent of total tickets processed in September were executed via the AiEX tool.
New technology developed by Tradeweb to streamline CDS trading by enabling clients to execute multiple, same direction orders as a single, aggregated ticket helped drive year-over-year volume growth of 17 per cent in credit derivatives.