Electronic marketplace Tradeweb Markets Inc has reported total trading volume for October 2023 of USD37.2 trillion. Average daily volume (ADV) for the month was a record USD1.75tn, an increase of 66.3 per cent year-over-year (YoY).
In October 2023, Tradeweb records included:
ADV in U.S. government bonds
ADV in swaps/swaptions ≥ 1-year
ADV in fully electronic US High Grade credit
ADV in equity convertibles/swaps/options
US government bond ADV was up 27.7 per cent YoY to USD163.7 billion. European government bond ADV was up 12.0 per cent YoY to USD42.3 billion.
Record US government bond volumes were supported by growth across all client sectors. Higher interest rates continued to drive trading in the retail market. US and European government bond volumes were supported by sustained rates market volatility.
Mortgage ADV was up 13.4 per cent YoY to USD193.8 billion.
Strong volumes were driven by increased participation from fast money accounts as well as elevated roll activity. Tradeweb writes that record specified pool volumes were driven by robust client engagement, continuing to drive strong YoY growth.
Swaps/swaptions ≥ 1-year ADV was up 121.1 per cent YoY to USD463.4 billion and total rates derivatives ADV was up 174.0 per cent YoY to USD749.6 billion.
Record volume in swaps/swaptions ≥ 1-year was driven in part by increased client activity and a 182 per cent YoY increase in lower fee per million compression activity. Quarter-to-date compression activity is running higher than 3Q23. Robust volumes were also driven by record activity in global inflation swaps as well as strong activity in the request-for-market (RFM) protocol and emerging market swaps.
Fully electronic US credit ADV was up 24.9 per cent YoY to USD5.6 billion and European credit ADV was up 27.4 per cent YoY to USD2.1 billion.
Strong US credit volumes, most notably record ADV in fully electronic US High Grade activity, reflected continued client adoption in Tradeweb protocols, including request-for-quote (RFQ), as well as record adoption in Tradeweb AllTrade and portfolio trading. Tradeweb’s share of fully electronic US High Grade and US High Yield TRACE was 16.8 per cent, and 6.7 per cent, respectively. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.
Municipal bonds ADV was up 2.1 per cent YoY to USD472 million (mm), Tradeweb reports.
Municipal volumes reflected healthy institutional and retail client activity, as broader municipal bond market volumes declined 1.8 per cent.
Credit derivatives ADV was down 24.0 per cent YoY to USD12.1 billion.
Tighter credit spreads led to a decline in overall swap execution facility (SEF) market activity.
US ETF ADV was down 6.5 per cent YoY to USD7.2 billion and European ETF ADV was up 24.1 per cent YoY to USD2.6 billion.
Tradeweb writes that institutional client engagement in US ETFs remained robust, with a 10 per cent increase in platform volumes YoY. European ETFs were up as broader market volumes remained relatively flat.
Repurchase agreement ADV was up 41.2 per cent YoY to USD527.2 billion.
The firm writes that further client adoption of its electronic trading solutions drove global repo activity. Current US market conditions shifted demand from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity continued to be strong as interest rates remained elevated.