Tradeweb Markets posted a strong performance in October, achieving total trading volumes of $54.7 trillion. Average daily volume (ADV) jumped 34.1% year-over-year (YoY) to $2.35 trillion.
The electronic marketplace also reached new heights in bond and derivatives markets, reportedly due to increased adoption across its client base, favorable market conditions, and expanding electronic trading protocols.
Trading Highlights
US government bond ADV surged 34.9% YoY to $220.8
billion, boosted by a record volume in Tradeweb’s institutional business and
robust wholesale and retail growth. The European government bond market also showed strong
results, with ADV up 26.3% to $53.4 billion.
Increased adoption across
protocols and the platform’s broad client base contributed to these gains,
supported by favorable market conditions amid economic shifts.
Mortgage ADV rose 28.2% YoY to $248.6 billion, driven
by record volumes. The uptick reflects strong dollar-roll
activity and increased volatility in macro rates, as well as record levels of
specified pool lists executed on the platform.
Swaps and swaptions with maturities of one year or
longer saw a YoY ADV decline of 9.4% to $416.6 billion, largely due to reduced
compression activity, which fell 40% YoY. Despite this, overall rates
derivatives ADV rose 5.9% YoY to $793.2 billion as clients continued to engage
in risk transfer through Tradeweb’s request-for-market protocol amid
heightened market volatility.
US Credit ADV
Fully electronic US credit ADV grew 32.7% YoY to
$7.4 billion, driven by increased adoption of the request-for-quote (RFQ) and
portfolio trading mechanisms. Tradeweb captured a significant market share in
US high-grade and high-yield bonds.
Meanwhile, credit derivatives ADV increased 13.0% YoY
to $13.6 billion, reflecting heightened activity from hedge funds and
systematic accounts amid volatile credit markets. US ETF ADV declined 9.0% YoY to $6.5 billion as
investor sentiment slowed trading ahead of the U.S. election.
In contrast, European ETF ADV rose 10.8% YoY to $2.8
billion as clients increasingly adopted Tradeweb’s automated RFQ tools for
efficient trade execution.
This article was written by Jared Kirui at www.financemagnates.com.
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