Bringing you live news and features since 2006 

Tradeweb reports strong July with record US institutional ETF activity

RELATED TOPICS​

Tradeweb has reported total trading volume for July 2021 of USD20.6 trillion across rates, credit, equities and money markets. Average daily volume (ADV) for the month was USD972.2 billion, an increase of 34.2 per cent year over year (YoY).

Lee Olesky, Tradeweb CEO, says: “Tradeweb’s diversified growth continued in July, with strong year-over-year volume gains in government bonds, swaps, credit and repos. Our credit volumes were higher in the US and Europe, and in US High Yield we captured record market share as more clients were active in anonymous and portfolio trading.”

In terms of ETFs, US ETF ADV was up 89.4 per cent YoY to USD6.2 billion and European ETF ADV was up 43.9 per cent YoY to USD2.5 billion, with Tradeweb noting that client growth and adoption, particularly among institutional clients, continued to drive volumes in US and European markets, with record US institutional ETF activity.

In US Credit, Tradeweb captured a record 9.9 per cent share of High Yield TRACE, of which 6.4 per cent was fully electronic. Activity was driven by record share in portfolio trading and Tradeweb AllTrade, with strong growth in both sessions-based and RFQ trading. 

US government bond ADV was up 38.7 per cent YoY to USD116.1bn, and European government bond ADV was up 25.0 per cent YoY to USD29.5bn.

Client use of innovative protocols continued apace, as client adoption of streaming liquidity and sessions-based trading increased. Additionally, July was the first full month of reporting to include Tradeweb’s newly acquired CLOB. Steady global government bond issuance, along with recent rising market volatility, remained supportive of trading generally.

Mortgage ADV was down 0.4 per cent YoY to USD190.0bn.

A notable decline in issuance and discussions of the eventual tapering of Fed open market purchases weighed on overall market activity. Client activity in specified pools on the institutional platform continued to show strong growth.

Swaps/swaptions ≥ 1-year ADV was up 72.4 per cent YoY to USD151.3bn, and total rates derivatives ADV was up 68.1 per cent YoY to USD240.5bn.

Swaps/swaptions ≥ 1-year volumes were driven by continued engagement from international clients; faster growth in the request-for-market (RFM) protocol; and further growth in emerging markets trading.

US Credit ADV was up 20.1 per cent YoY to USD5.1bn and European credit ADV was up 63.5 per cent YoY to USD1.9bn.

In July, client use of Tradeweb AllTrade protocols reached new highs in TRACE share with strong growth in both sessions-based and RFQ trading across US High Grade and US High Yield. US High Grade TRACE market share was 20.2 per cent (12.0 per cent fully electronic). US High Yield TRACE market share was a record of 9.9 per cent (6.4 per cent fully electronic), with record volumes executed via portfolio trading. In Europe, clients executed record volume via portfolio trading.

Credit derivatives ADV was up 22.4 per cent YoY to USD7.5bn.

Recent rising volatility provided a boost to overall market activity.

Repurchase Agreement ADV was up 38.9 per cent YoY to USD345.1bn.

The continued addition of new clients on the platform supported strong growth in Global Repo activity. Retail money markets activity remained pressured by the low interest rate environment.
 

Latest News

Morningstar has published a review of the European ETF market for the first quarter 2024, which finds that it gathered..
ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..

Related Articles

ETFs
US ETF issuers of active ETFs are facing an increase in fees from the big custodian firms, such as Charles...
Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by