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Tradeweb reports April 2024 total trading volume of USD41.9 trn and ADV of USD1.94 trn, up 69.1 per cent YoY

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Electronic marketplace manager Tradeweb Markets Inc has reported total trading volume for the month of April 2024 of USD41.9 trillion. The average daily volume (ADV) for the month was USD1.94 trillion, an increase of 69.1 per cent (per cent) year-over-year (YoY).

RATES   

US government bond ADV was up 70.7 per cent YoY to USD205.3 billion (bn). European government bond ADV was up 23.9 per cent YoY to USD45.6bn.

US government bond volumes were supported by growth across all client sectors. Increased adoption across a wide range of protocols and favourable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes, Tradeweb writes. Robust primary issuance across Europe and the UK helped drive trading volume in European government bonds.

Mortgage ADV was up 34.8 per cent YoY to USD206.1bn.

The continuation of elevated roll activity, together with a spike in volatility, contributed to higher ADV on our To-Be-Announced (TBA) platform, while increased client adoption contributed to strong volumes in specified pool trading.

Swaps/swaptions ≥ 1-year ADV was up 118.9 per cent YoY to USD475.7bn and total rates derivatives ADV was up 127.8 per cent YoY to USD796.0bn.

Strong volume in swaps/swaptions ≥ 1-year was driven by ongoing institutional client activity in response to current global central bank policy decisions, as well as a 137 per cent increase in compression activity which carries a lower FPM. Quarter to date compression activity is trending lower than 1Q24. Clients continued to utilise the request-for-market (RFM) protocol for larger risk transfers, while inflation and emerging markets swap growth remained strong.

CREDIT   

Fully electronic U.S. credit ADV was up 96.1 per cent YoY to USD8.0bn and European credit ADV was up 19.4 per cent YoY to USD2.3bn.

Higher U.S. credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade. Tradeweb captured a record 19.7 per cent share of fully electronic U.S. High Grade TRACE, and 7.3 per cent share of fully electronic U.S. High Yield TRACE. Increases in European credit volumes were driven by continued client adoption of portfolio trading, unique dealer selection tools (SNAP IOI) and session-based trading.

Municipal bonds ADV was up 20.8 per cent YoY to USD347 million (mm).

Volumes outpaced the broader market, which was up roughly 6 per cent YoY[2]. Institutional and retail activity was strong, with robust buyside activity amidst active issuance.

Credit derivatives ADV was up 65.0 per cent YoY to USD15.3bn. 

Increased credit volatility and credit default swap indices (CDX) roll trading led to increased swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.

EQUITIES   

US ETF ADV was up 24.8 per cent YoY to USD7.8bn and European ETF ADV was up 19.4 per cent YoY to USD2.8bn.

US and European institutional ETF volumes continued to grow as more clients embraced Tradeweb’s electronic RFQ protocol. U.S. wholesale ETF volumes also increased as the customer base continued to expand.

MONEY MARKETS   

Repurchase agreement ADV was up 39.4 per cent YoY to USD598.2bn.

Increased client activity on Tradeweb’s electronic repo trading platform drove record global repo activity. The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity was strong as markets priced in less aggressive Fed rate cuts.

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