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Volume increase

Tradeweb reports huge increases in volumes in March

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Automated trading platform Tradeweb today reported a record average daily volume (ADV) of USD1.0 trillion in aggregate for the month of March 2020, an increase of 41.5 per cent year over year.

For the first quarter of 2020, Tradeweb reported record ADV of USD897.8 billion, up 39.0 per cent year on year, and preliminary average variable fees per million dollars of volume traded of USD2.65.

US ETF ADV was up 242.0 per cent year on year to USD10.0 billion – with new records in both institutional and wholesale client sectors, and European ETF ADV was up 190.6 per cent YoY to USD4.0 billion.

Lee Olesky, Tradeweb CEO, says: “It is especially critical during times of uncertainty that markets operate reliably and efficiently. We remain focused on the safety of our people and ensuring that Tradeweb clients trade with confidence wherever they are in the world. 

“In March we saw clients adapt to market volatility and remote working by adjusting how they traded — taking advantage of our multi-asset class and multi-protocol electronic offerings to find the best approach. More than 18,000 institutional and dealer users worldwide relied on our platform over the month, which is about the same as six months ago when the environment was very different.”

Markets saw unprecedented volatility during the month, and Tradeweb activity was elevated throughout. On March 3rd, the day of the emergency rate cut by the Federal Reserve, a record USD1.5 trillion was traded across the Tradeweb platform globally. In addition, new records were set across several products over the month, including European government bonds, interest rates derivatives, credit derivatives, and US and European ETFs.

Tradeweb reports that European government bond trading rose 27.3 per cent year on year and surpassed ADV of USD30 billion for the first time. Interest rate derivatives trading rose 70.5 per cent year on year to ADV of USD319.2 billion, on strong compression trading including record activity in multi-asset packages.

Credit volumes showed continued strength despite market conditions as clients used a diverse mix of portfolio trading, credit derivatives and electronic processing to move large blocks of risk.

ADV in US high-grade credit rose 35.4 per cent YoY to USD3.8 billion, representing 12.8 per cent of TRACE volume. ADV in US high-yield credit increased 99.5 per cent YoY to USD488 million, representing 3.6 per cent of TRACE volume.

ADV in European credit meanwhile rose 12.3 per cent YoY to USD1.5 billion.        Credit derivatives trading ADV of USD47.1 billion was up 148.4 per cent YoY, more than double the previous monthly record. As investors and traders turned to ETFs to transact risk as efficiently and quickly as possible, global ETF activity on Tradeweb increased 225.6 per cent YoY. Trading in repurchase agreements increased 32.5 per cent YoY to ADV of USD235.4 billion.

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