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Tradeweb reports June 2023 total trading volume of USD29.3 trillion and ADV of USD1.38 trillion

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Tradeweb Markets Inc. (Nasdaq: TW), a global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for June 2023 of USD29.3 trillion (tn). Average daily volume (ADV) for the month was USD1.38trillion, an increase of 10.8 per cent year-over-year (YoY). For the second quarter of 2023, total trading volume was USD81.0 trillion and ADV was USD1.30 trillion, an increase of 10.2 per cent YoY, with preliminary average variable fees per million dollars of volume traded of USD2.60.

In June 2023, Tradeweb records included:

Share of TRACE in fully electronic U.S. High Grade credit

ADV in global repurchase agreements

For the second quarter of 2023, Tradeweb records included:

Share of TRACE in fully electronic U.S. High Grade credit

ADV in global repurchase agreements

ADV in equity convertibles/swaps/options

June 2023 Highlights

Rates   

U.S. government bond ADV was up 12.6 per cent YoY to USD139.7 billion (bn). European government bond ADV was up 16.7 per cent YoY to USD43.0bn.

Growth in retail and institutional U.S. government bond volumes was strong. Higher interest rates continued to drive trading in the retail market. U.S. and European government bond volumes were supported by sustained rates market volatility.

Mortgage ADV was down 2.7 per cent YoY to USD169.9bn.

While market uncertainty and volatility weighed on overall activity, institutional specified pool trading had its second highest volume month ever due to growing client engagement.

Swaps/swaptions ≥ 1-year ADV was up 11.7 per cent YoY to USD280.4bn and total rates derivatives ADV was up 10.9 per cent YoY to USD462.4bn.

Higher volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a 30 per cent YoY increase in compression activity. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Strong volumes were driven by record activity in emerging markets swaps and global inflation swaps as well as record client activity in the request-for-market (RFM) protocol.

Credit   

Fully electronic U.S. credit ADV was up 35.3 per cent YoY to USD5.0bn and European credit ADV was up 22.9 per cent YoY to USD2.0bn.

Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade® and portfolio trading, as the broader TRACE credit market was relatively flat. Tradeweb captured a record 16.0 per cent share of fully electronic U.S. High Grade TRACE, and 6.6 per cent share of fully electronic U.S. High Yield TRACE. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.

Municipal bonds ADV was down 18.0 per cent YoY to USD314 million (mm).

While institutional and retail client activity remained healthy, Tradeweb municipal volumes reflected a broader decline in municipal market volumes given relative yield dynamics and limited new issuance.

Credit derivatives ADV was down 53.5 per cent YoY to USD7.7bn. 

Significant tightening of credit spreads led to a steep decline in overall broader swap execution facility (SEF) market activity.

Equities   

U.S. ETF ADV was up 20.3 per cent YoY to USD9.1bn and European ETF ADV was down 14.7 per cent YoY to USD2.4bn.

U.S. ETF growth was driven by strong wholesale activity, while institutional client engagement remained robust. European ETF volumes reflected declining overall market volumes.

Money Markets 

Repurchase agreement ADV was up 18.2 per cent YoY to USD496.1bn.

Further client adoption of Tradeweb’s electronic trading solutions drove record global repo activity, despite continued volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity continued to be strong as interest rates remained elevated.

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