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Tradeweb reports June 2024 Total Trading Volume of USD37.5 tln and Average Daily Volume of USD1.94 tln

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Tradeweb Markets has reported total trading volume for the month of June 2024 of USD37.5 trillion (tln). Average daily volume (ADV) for the month was USD1.94tn, an increase of 40.9 per cent) year-over-year (YoY). For the second quarter of 2024, total trading volume was USD121.0 tln and ADV was USD1.92 tln, an increase of 48.3 per cent YoY, with preliminary average variable fees per million dollars of volume traded of USD2.43.

Tradeweb CEO Billy Hult says: “Tradeweb in Q2 reported double digit, YoY volume growth in rates, credit, money markets and equities. We set new records for quarterly ADV in U.S. government bonds, fully electronic U.S. high yield and repo, as well as capturing record share of fully electronic U.S. high grade credit. The second quarter of 2024 culminated with a strong June, led by a 54 per cent YoY increase in rates ADV and continued momentum in credit ADV – up 67 per cent YoY. In addition to volatility across many of our markets, Tradeweb volumes in June and throughout Q2 reflected increased adoption in a range of trading protocols and strong client engagement.”

In June 2024, Tradeweb reports that its records included:

·         ADV in U.S. government bonds

For the second quarter of 2024, Tradeweb records included:

·         ADV in U.S. government bonds

·         ADV in fully electronic U.S. high yield

·         ADV in repurchase agreements (Repo)

·         Share of fully electronic U.S. high grade TRACE

Rates  

·         U.S. government bond ADV was up 50.8 per cent YoY to USD210.7 billion (bn). European government bond ADV was up 17.4 per cent YoY to USD50.5 bn.

·         U.S. government bond volumes were supported by growth across all client sectors. Increased adoption across a range of protocols and favorable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes. Market volatility and sustained primary issuance across Europe and the UK helped drive trading volume in European government bonds, especially gilts.

·         Mortgage ADV was up 22.9 per cent YoY to USD208.9bn.

·         

·         Stronger To-Be-Announced (TBA) volumes were a result of increased activity from the hedge fund community, in addition to heightened basis trading. Client participation on our securitized products platform set a new record and volume executed by mortgage originators also hit a new high.

·         Swaps/swaptions ≥ 1-year ADV was up 56.0 per cent YoY to USD437.3bn and total rates derivatives ADV was up 69.1 per cent YoY to USD782.2bn.

·         Strong volume in swaps/swaptions ≥ 1-year was driven by global political uncertainty and pending central bank policy decisions, as well as a 41 per cent increase in compression activity, which carries a lower fee per million. Client trading activity continued to increase in the request-for-market (RFM) protocol while inflation and emerging markets swap growth remained strong. 2Q24 compression activity was lower than 1Q24.

Credit  

·         Fully electronic U.S. credit ADV was up 41.4 per cent YoY to USD7.0bn and European credit ADV was up 24.2 per cent YoY to USD2.5bn.

·         U.S. credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade. Tradeweb captured 18.9 per cent share of fully electronic U.S. high grade TRACE, and 8.1 per cent share of fully electronic U.S. high yield TRACE. “In Europe, portfolio trading and our unique dealer selection tool (SNAP IOI) saw increased client adoption.”

·         Municipal bonds ADV was up 30.4 per cent YoY to USD410 million (mm).

·         Volume growth outpaced the broader market, as institutional and retail volumes both surpassed 20 per cent growth YoY amidst robust issuance.

·         Credit derivatives ADV was up 92.0 per cent YoY to USD14.7bn.

·         Increased hedge fund and systematic account activity, along with heightened credit volatility, led to increased swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.

Equities  

·         U.S. ETF ADV was down 11.1 per cent YoY to USD8.1bn and European ETF ADV was up 18.1 per cent YoY to USD2.8bn.

·         ETF market volumes remained muted as market volatility remained low. On Tradeweb, U.S. ETF institutional volumes remained strong, while wholesale market volumes were lower. “European ETF volumes grew as clients continued to embrace our automated rules-based trading protocol.”

Money Markets  

·         Repo ADV was up 20.8 per cent YoY to USD599.2bn.

·         Increased client activity on Tradeweb’s electronic repo trading platform drove strong 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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