Tradeweb, which is one of the largest operator of electronic marketplaces for rates, credit, equities and money markets, reported a total volume of $19.3 trillion for the month of April, 2021.
This is across all their electronic market places. The average daily volume (ADV) was reported as $896.8 billion which is an increase of 17.5% when compared to the same month last year.
The average daily trades in the month of April was 57, 837 and this strong performance is quite a change from the times of the pandemic and bodes well for the trading industry as a whole. It has been noted that right across different brokers and exchanges, we have been seeing a pick up in the trading volumes over the last couple of months.
Lee Olesky, Tradeweb CEO, said: “Tradeweb continued to grow its U.S. credit market share in April, with our fully electronic share for U.S. High Grade TRACE reaching 11.7% up from 3.0% just three years ago. Credit markets are seeing more trading volume executed electronically, and Tradeweb has increased its share of that growing volume thanks to innovative tools and protocols such as electronic portfolio trading, net spotting and automated trading via AiEX to name a few.”
In U.S. Credit, Tradeweb captured 21.7% of U.S. High Grade TRACE share and 8.9% of U.S. High Yield TRACE share, with fully electronic activity of 11.7% and 4.8%, respectively. This is the highest for the company so far.
This growth in the volumes should act as a spur for all brokers and exchanges who were hit hard during the pandemic period last year as the traders were looking to retain their funds and save it up for another day. No one was sure on when the pandemic would end and hence the traders tended to keep the funds to themselves so that they could use it as the pandemic dragged on. Now with the pandemic showing signs of thawing around the world and the vaccines also rolling in, the risk appetite of the traders seems to have increased.
This has been helped by the platforms, brokers and other fintech companies continuing to work on their products during this period in the hope that things would get better in due course of time. We are now seeing the fruitful results of that work as the fintech companies have come out with more and more new products over the last few months and this has helped in better and faster execution for the traders creating a win-win situation for all.