Tradeweb’s quarterly revenue surpasses $300 million for first time ever

abdelaziz Fathi

Tradeweb Markets, the operator of electronic marketplaces for rates, credit, equities and money markets, revealed a record revenues for the Q1 2022, as the figure increased by 14 percent to $311.5 million.

The record performance followed an average daily volume of $1.2 trillion for the quarter, which was up by 11 percent compared to prior year period.

Additionally, in the first three months of 2022, Tradeweb saw an increase in net income by 20 percent to $97.4 million compared to the previous year. On an adjusted basis, the company’s core profit hit $115.1 million, up 13 percent from a year earlier.

In terms of the breakdown of revenues, Tradeweb’s rates, credit, equities, money markets and market data all saw increases in the Jan-Mar period. The electronic trading platform surpassed $300 million in quarterly revenue for the first time in history, showcasing the diversity of its business.

Rates performance was led by record activity in U.S. and European government bonds, as well as swaps/swaptions. This business segment yielded $160.3 million in the first quarter of 2022, up 12.2 percent compared to prior year period.

2022 shaping to be another strong year

Equities’ revenues also rose to $26.5 million, up 40.7 percent YoY as stocks ADV increased 32.6 percent with record ADV in U.S. and European ETFs.

Following record performance last year, 2022 already appears to be shaping to be another strong year for Tradeweb, with March 2022 figures showing a total trading volume of $28.2 trillion, up 25 percent from $22.6 trillion in February. In addition, average daily volume for the month was $1.23 trillion per day last month.

The New York-based company said 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.

Lee Olesky, Chairman and CEO of Tradeweb Markets, comments: “Increased rates volatility in the first quarter of 2022 contributed to record volumes in U.S. Treasuries, European government bonds and swaps. Credit delivered a record revenue quarter driven by broad-based product growth and strong corporate bond client engagement across RFQ, Tradeweb AllTrade, and Portfolio Trading – which saw a ~60 percent YoY increase in the number of firms using the tool. In February, our board announced succession plans for the company; I was honored to be appointed Chairman, and I am tremendously excited that my longtime partner Billy Hult will succeed me as CEO on January 1, 2023. Tradeweb has an outstanding leadership team and we believe we are well positioned for the future.”

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