Tradeweb Markets has reported trading volume for January 2022, with total trading volume for January 2022 of USD22.3 trillion. Average daily volume (ADV) for the month was USD1.12 trillion, an increase of 7.6 per cent year-over-year (YoY).
In January, fully electronic share for U.S High Yield TRACE set a Tradeweb record of 8.2 per cent. Additionally, Tradeweb set a new ADV record in European government bond trading.
RATES
U.S. government bond ADV was up 28.4 per cent YoY to USD146.6 billion and European government bond ADV was up 22.2 per cent YoY to USD37.0 billion.
The firm writes that trading in U.S. government bonds was supported by strong client activity in institutional and wholesale markets; the continued momentum of session-based trading and streaming protocols; and the addition of the Nasdaq Fixed Income business. Robust issuance, along with heightened rates market volatility, drove record European government bond trading.
Mortgage ADV was down 15.0 per cent YoY to USD211.8 billion.
Declining issuance and uncertainty over the future of the Federal Reserve’s balance sheet weighed on overall market activity.
Swaps/swaptions ≥ 1-year ADV was up 12.7 per cent YoY to USD163.9 billion, and total rates derivatives ADV was up 17.1 per cent YoY to USD307.1 billion.
Swaps/swaptions ≥ 1-year volumes were driven by robust client interest in the request-for-market (RFM) protocol, continued engagement from international clients and increased client adoption of emerging markets swaps. Increased market focus on evolving central bank policy continued to buoy overall market activity.
CREDIT
Fully electronic U.S. Credit ADV was up 19.7 per cent YoY to USD3.8 billion and European credit ADV was up 2.8 per cent YoY to USD2.1 billion.
Continued growth in U.S. and European credit was driven by higher volumes across Tradeweb AllTrade protocols, reflecting continued client adoption of our request-for-quote (RFQ) protocol, and electronic portfolio trading. Fully electronic share for U.S. High Grade and U.S. High Yield TRACE was 12.3 per cent and a Tradeweb record of 8.2 per cent, respectively.
Credit derivatives ADV was up 37.3 per cent YoY to USD13.1 billion.
Market-wide volatility boosted volumes overall.
EQUITIES
U.S. ETF ADV was up 70.5 per cent YoY to USD9.6 billion and European ETF ADV was up 21.3 per cent YoY to USD3.7billion.
Tradeweb writes that record global institutional client activity benefited from further adoption and elevated market volatility.
MONEY MARKETS
Repurchase Agreement ADV was up 5.5 per cent YoY to USD346.5 billion.
The addition of new clients on the platform continued to support growth in Global Repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility weighed on the overall repo market. Retail money markets activity remained pressured by the low interest rate environment
