Tradeweb reports higher quarterly revenues, profit surges 38%

Fixed-income trading platform, Tradeweb Markets reported solid financial results for the Q3 2021 even as investors became less active after frantic trading driven by Covid-19 earlier in the year sent operational metrics to record highs.

The New York-based company said it had revenues of $265.3 million in the three months through September 2021. On a constant currency basis, this figure was higher by 24% compared to $212 million in the prior year period.

Tradeweb posted $65.3 million in net income and $94.2 million adjusted net income for the quarter, up 38.8%, and 34.6% respectively from the third quarter of 2020.

The electronic marketplaces operator posted earnings of 26 cents per share. Adjusted earnings, which exclude costs related to mergers and acquisitions and non-recurring costs, came in at 39 cents per share.

“Tradeweb’s strong momentum from the first half of the year continued through the third quarter of 2021, producing our second-best revenue quarter ever. Growth in trading volume was broad-based across our markets, with U.S. Credit, global swaps and U.S. Treasuries leading the way. We were delighted to welcome Sara Furber as our new CFO, helping us navigate Tradeweb’s next phase of growth and development. Finally, we published our inaugural Corporate Sustainability Report to increase transparency for our strong foundation in ESG,” said Lee Olesky, CEO of Tradeweb Markets.

In terms of total trading volume across all asset classes, Tradeweb reported $964.5 billion in average daily volume for the quarter, an increase of 23.6% compared to prior year period.

Market volatility developments, which has been a standout phenomenon of the pandemic-era, bolstered activity in certain assets in the third quarter. But a slowdown occurred as many counties eased some coronavirus restrictions which likely took some of investors’ interest.

Trading on risk-free rates and trading via request-for-market (RFM) list also continued to see solid growth across swaps/swaptions. Moreover, the trading activity in U.S Treasuries continued apace, with increased activity executed via firm streams by institutional and wholesale clients.

Trading desks are typically quieter in the summer months as market participants go on holiday. But this year’s volatility metrics recorded their biggest leaps in decades earlier in the season on continuing uncertainty over the global central banks’ policy.