Tradeweb Markets reports continued strong volumes for February

abdelaziz Fathi

Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the second month of 2022, which has seen continued strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.

Tradeweb

In terms of total trading volume, Tradeweb in February bested its previous reading for monthly volumes, coming in at $22.6 trillion, up from $22.3 trillion in January 2022.

Tradeweb’s trading volumes hit $1.17 trillion per day in February 2022, up 11 percent from $1.06 trillion in aggregate for February 2021. The ADV figure was slightly lower on month-over-month basis compared to $1.18 trillion of January.

In February, Tradeweb set new ADV records in both US and European government bond trading, as well as electronic US high grade credit and emerging market swaps. Activity in the latter segment was driven by record turnover in portfolio trading, with over $300 billon exchanged hands in 2021.

The New York-based company said the ADV metric was robust as client activity of sessions-based trading reached a monthly record and usage of streams liquidity was buoyed this year by the recently closed purchase of the Nasdaq’s fixed income business.

Mortgage activity declined

Trading in US government bonds was supported by strong client activity in institutional and wholesale markets. In addition, the activity was aided by continued momentum of streaming protocols. Robust issuance, along with heightened rates market volatility, also drove record European government bond trading.

More specifically, Tradeweb reported that US government bond ADV was up 30.4 percent YoY to $153.8 billion, while its European counterpart was up 24.9 percent YoY to $42.0 billion.

Record global institutional client activity benefited from further adoption and elevated market volatility. US ETF ADV was up 80.0 percent YoY to $9.4 billion and European ETF ADV was up 29.6 percent YoY to $3.7 billion.

The company also disclosed a declining mortgage activity amid uncertainty over the future of the Federal Reserve’s balance sheet, which continued to weigh on overall market activity. Mortgage ADV was down 20.9 percent YoY to $184.5 billion.

Continued growth of institutional clients contributed to higher stock volumes. In the US, the strong growth in institutional trading more than offset declining wholesale activity as a result of waning equity market volatility.

Read this next

Executive Moves

Lirunex Limited recruits Waleed Salah as head of MENA sales

Maldives-based brokerage firm Lirunex Limited has secured the services of Waleed Salah, who joined the company in the role of its head of sales for the MENA region.

Executive Moves

Trading 212 parts ways with co-founder Borislav Nedialkov

Trading 212 has a void to fill at its FCA-regulated business in London, following the departure of two key players, Raj Somal and Borislav Nedialkov.

Digital Assets

Binance acquires troubled crypto exchange GOPAX

Binance, the world’s largest digital asset trading platform, has reportedly acquired a majority stake in the troubled South Korea-based cryptocurrency exchange GOPAX.

Digital Assets

Kraken exits Middle East, closes UAE office

Digital currency exchange Kraken will close down its operations in Abu Dhabi, UAE and lay off the majority of its team focused on the Middle East and North Africa.

Industry News

CFTC comments on ION Cleared Derivatives issues after Russian-linked hack

“The ongoing issue is impacting some clearing members’ ability to provide the CFTC with timely and accurate data. As this incident unfolded, it became clear that the submission of data that is required by registrants will be delayed until the trading issues are resolved.”

Industry News

FCA took down 14 times more misleading ads in 2022 thanks to technology

The FCA has made significant improvements to the digital tools it uses to find problem firms and misleading adverts. These improvements have enabled it to work through a much larger number of cases compared with 2021.

Executive Moves

HKEX appoints ex-Goldman Sachs Matthew Cheong to lead platform’s focus on derivatives

“He has worked for a number of the world’s leading investment banks and his experience will be invaluable to HKEX as we continue to enhance our derivatives product offerings and build on our innovative and robust platform business, connecting capital with opportunities.”

Digital Assets

Zodia Custody and SBI Digital Asset Holdings launch JV for crypto asset custodian in Japan

“Zodia Custody is both proud and excited to be working with SBI DAH to help set up SBI Zodia Custody; the first tier 1 crypto asset custodian for institutions in Japan.”

Digital Assets

Paxos opens R&D center in Israel to focus on transaction signing and crypto custody security

“Paxos is looking to expand its team in Israel in 2023 and beyond, giving engineers the opportunity to work on cutting-edge financial products and shape the future of the global economy.”

<