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Tradeweb reports September 2023 total trading volume of USD31.8trn and Record Average Daily Volume of USD1.57trn

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Electronic marketplace operator Tradeweb Markets has reported total trading volume for September 2023 of USD31.8 trillion. Average daily volume (ADV) for the month was a record USD1.57 trillion, an increase of 30.8 per cent year-over-year (YoY). For the third quarter of 2023, total trading volume was USD90.4 trillion and ADV was a record USD1.42 trillion, an increase of 29.6 per cent YoY, with preliminary average variable fees per million dollars of volume traded of USD2.51.

In September 20232, Tradeweb records included:

• ADV in global repurchase agreements

For the third quarter of 2023, Tradeweb records included:

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

• Share of TRACE in fully electronic U.S. High Yield credit

• ADV in fully electronic U.S. High Grade credit

• ADV in global repurchase agreements

• ADV in Chinese bonds

• ADV in swaps/swaptions ≥ 1-year

September 2023 Highlights

RATES

U.S. government bond ADV was up 12.4 per cent YoY to USD145.3 billion (bn). European government bond ADV was up 1.9 per cent YoY to USD42.4bn.

U.S. 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 12.0 per cent YoY to USD181.6bn.

Overall trading activity remained high, despite a backdrop of rising rates and broader market volatility. Client engagement in specified pool trading remained robust, continuing to drive strong YoY growth.

Swaps/swaptions ≥ 1-year ADV was up 30.0 per cent YoY to USD335.3bn and total rates derivatives ADV was up 45.3 per cent YoY to USD570.9bn.

Higher volume in swaps/swaptions ≥ 1-year was driven in part by heightened interest rate volatility, particularly in shorter dated instruments, and a 44 per cent YoY increase in compression activity. Shorter dated, lower duration instruments in swaps/swaptions ≥ 1-year have a lower fee per million. Robust volumes were driven by continued strong activity in global inflation swaps and the request-for-market (RFM) protocol as well as record activity in emerging markets swaps.

CREDIT

Fully electronic U.S. credit ADV was up 14.3 per cent YoY to USD4.9bn and European credit ADV was up 22.6 per cent YoY to USD2.1bn.

Strong US credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade and portfolio trading. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 15.8 per cent, and 7.7 per cent, respectively. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ.

Municipal bonds ADV was down 7.1 per cent YoY to USD357 million (mm).

Municipal volumes reflected healthy institutional and retail client activity, as broader municipal bond market volumes declined 15.4 per cent.

Credit derivatives ADV was down 1.1 per cent YoY to USD36.6bn.

Strong semi-annual rolling activity supported volumes despite a 13 per cent decline in broader swap execution facility (SEF) market activity.

EQUITIES

U.S. ETF ADV was down 2.9 per cent YoY to USD7.4bn and European ETF ADV was down 8.8 per cent YoY to USD2.2bn.

While suppressed volatility at the beginning of the month weighed on overall volumes, activity accelerated towards the end of the month. Client engagement in US ETFs remained robust, despite a decline of 18 per cent in overall US ETF market volumes. European ETF volumes reflected declining overall market volumes.

MONEY MARKETS

Repurchase agreement ADV was up 38.9 per cent YoY to USD529.6bn.

Further client adoption of Tradeweb’s electronic trading solutions drove record 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.

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