Tradeweb Markets, the operator of electronic marketplaces for rates, credit, equities and money markets, has just reported its aggregated trading volumes for October 2022.
The group’s most recent volumes took a step back during the month, ending a consecutive string of increases this year. In particular, Tradeweb clients transacted a total of $21.3 trillion in October 2022, retreating 15 percent month-over-month from $25.1 trillion in September 2022.
The group’s average daily volumes (ADVs) came in at $1.05 trillion, down 12 percent month-over-month from $1.2 trillion per day in September. Over a yearly timetable, Tradeweb’s latest volume was higher by a factor of 16 percent year-over-year.
US government bond ADV was $128 billion, down 14 percent from the prior year. In a different pattern, European government bond ADV registered a rise in October with transactions moving higher by 4.2 percent year-over-year to $37.8 billion (up 23.8 percent YoY on a EUR-denominated basis).
As explained, US government bond activity was lower YoY, as industry volumes declined. While U.S. government bond activity in institutional markets was modestly lower, Tradeweb Markets saw a record in average daily trades, up 61.2 percent YoY. Wholesale saw steady volume in streams that was more than offset by an industry pullback in CLOB volumes. Higher interest rates drove record volumes in the retail market while strong European government bond trading was driven by heightened rates market volatility and record activity in UK Gilts.
The New York-based company disclosed a weak mortgage activity amid uncertainty over the future of the Federal Reserve’s balance sheet. Mortgage ADV was down 14 percent YoY to $171 billion as historically high mortgage rates and inflationary concerns also continued to weigh on issuance and trading activity in the sector.
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.
US and European credit volumes reflected continued client adoption across all Tradeweb protocols, including Tradeweb AllTrade’s request-for-quote (RFQ) and portfolio trading. However, reported European volumes were impacted by a strong US dollar.
