Electronic marketplace operator Tradeweb has reported a new quarterly record for average daily volume (ADV) of USD753.8 billion, representing an increase of 39.6 per cent.
The company also saw new quarterly records for ADV in interest rate swaps and mortgages and US high-grade credit which accounted for 12.4 per cent of TRACE volume.
Gross revenue increased 11.4 per cent (13.2 per cent on a constant currency basis) to a record USD190.5 million for the second quarter of 2019 from USD171.0 million for the second quarter of 2018. Net income decreased to USD24.8 million for the second quarter of 2019 from USD38.9 million for the second quarter of 2018.
Tradeweb says the decrease was driven by a non-cash, stock-based compensation expense of USD20.4 million related to the special award of options made to management and other employees in October 2018 (the Special Option Award).
Adjusted EBITDA increased 16.2 per cent to USD86.9 million with an Adjusted EBITDA margin of 45.6 per cent for the second quarter of 2019 compared to an Adjusted EBITDA and Adjusted EBITDA margin of USD74.8 million and 43.8 per cent, respectively, for the second quarter of 2018 (on a constant currency basis. Adjusted EBITDA margin increased 217 basis points compared to the second quarter of 2018). Adjusted Net Income increased 17.0 per cent to USD56.6 million for the second quarter of 2019 from USD48.4 million for the second quarter of 2018. Adjusted Diluted EPS was USD0.25 for the second quarter of 2019 compared to USD0.23 for the second quarter of 2018.
Lee Olesky, Chief Executive Officer of Tradeweb Markets, says: “Tradeweb’s strong, across-the-board performance during the second quarter reflects our continuous efforts to cultivate new markets and develop trading protocols that give clients greater choice in how they search and access liquidity. While we’ve made tremendous strides to date, significant opportunity remains to deliver products and services that enhance and streamline client trading strategies and workflows. Our constant experimentation and collaboration with clients to deliver new trading technologies is the engine that drives our growth.”