Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the first month of 2022, which has seen very strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.
Tradeweb’s trading volumes hit $1.18 trillion per day in January 2022, up 28 percent from $915.9 billion in aggregate for the month of December. The ADV figure was also higher year-over-year compared to $1.0 trillion of January 2021.
In terms of total trading volume, Tradeweb in January 2021 bested its previous reading for monthly volumes, coming in at $22.3 trillion, up from $20.0 trillion in December.
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 session-based trading and streaming protocols, and the addition of the Nasdaq Fixed Income business. Robust issuance, along with heightened rates market volatility, also drove record European government bond trading.
Taking a quarterly perspective, Tradeweb reported total trading volume of $69.7 trillion for the fourth quarter of 2021. The company also disclosed a record ADV of $1.11 trillion for the quarter, which was up 24.1% YoY, with quarterly ADV records in U.S. government bonds. Preliminary average variable fees per million dollars of volume traded of were reported at $2.55 for the Q4 2021.
The Sep-Dec quarter capped off a record volume year for Tradeweb, with ADV for the full year exceeding $1 trillion and most product lines seeing record activity. The YoY gains at Tradeweb, which is majority-owned by Refinitiv, were also partly driven by its equities business.
Activity in US High Grade and European credit 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 Fixed Income business.
Continued growth of institutional clients contributed to higher volumes. In the US, the strong growth in institutional trading more than offset declining wholesale activity as a result of waning equity market volatility.