Tradeweb Markets reports continued strong volumes for June

abdelaziz Fathi

Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the month of June 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.

In terms of total trading volume, Tradeweb in June bested its previous reading for monthly volumes, coming in at $26.1 trillion, up from $25.0 trillion in May 2022.

Tradeweb’s trading volumes hit $1.24 trillion per day in June 2022, up 20.4 percent from $1.09 trillion in aggregate for June 2021. The ADV figure was also higher on month-over-month basis compared to $1.19 trillion of May, with preliminary average variable fees per million dollars of volume traded of $2.78.

In June, 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 4 percent YoY to $124 billion, while its European counterpart was up 15 percent YoY to $37 billion.

Record global institutional client activity benefited from further adoption and elevated market volatility. US ETF ADV was up 36 percent YoY to $7.5 billion and European ETF ADV was up 14.5 percent YoY to $2.8 billion.

The company also disclosed a declining mortgage activity amid uncertainty over the future of the Federal Reserve’s hawkish policy, which continued to weigh on overall market activity. Mortgage ADV was down 0.1 percent YoY to $174 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.

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