Tradeweb Markets Inc. (Nasdaq: TW), a leading operator of electronic marketplaces for rates, credit, equities, and money markets, has reported its total trading volume for August 2023. The metrics show a notable surge in trading activity across various sectors, reflecting Tradeweb’s ongoing growth and adaptability in the ever-changing financial landscape.
August 2023 saw Tradeweb achieve a staggering total trading volume of $33.0 trillion, buoyed by an average daily volume (ADV) of $1.44 trillion for the month, marking a year-over-year increase of 41.2%.
The ADV for U.S. government bonds experienced a noteworthy 14.9% year-over-year increase, reaching $142.7 billion. Similarly, the ADV for European government bonds showed robust growth, surging by 19.6% year-over-year to reach $32.9 billion.
Meanwhile, the mortgage market witnessed solid growth with an 11.0% year-over-year ADV increase, totaling $174.4 billion. This remarkable performance occurred despite a somewhat sluggish origination market, Tradeweb said.
Swaps and swaptions with a duration of one year or more also rose by 125.4% year-over-year, totaling $381.8 billion per day. The overall rates derivatives ADV also saw significant growth, up 89.0% year-over-year to $535.9 billion.
Tradeweb’s U.S. credit market experienced an impressive 38.9% year-over-year ADV increase, totaling $4.8 billion. The European credit ADV followed suit with a robust growth rate of 48.5% year-over-year, reaching $1.6 billion.
The municipal bonds market remained relatively stable year-over-year, with an ADV of $345 million, indicating consistent institutional and retail client engagement. However, credit derivatives ADV declined by 30.5% year-over-year to $7.9 billion, primarily due to tightening credit spreads affecting broader swap execution facility (SEF) market activity.
In terms of its Money Markets business, repurchase agreement (repo) ADV surged by an impressive 33.1% year-over-year to $491.9 billion, driven by the growing adoption of Tradeweb’s electronic trading solutions. Shifting market conditions in the U.S. led to increased demand for money markets, particularly over the Federal Reserve’s reverse repo facility.
Earlier in July, Tradeweb reported quarterly revenues of $310.6 million, up 4.5% compared to the same period last year. On a constant currency basis, the revenue growth stood at 4.4%, reflecting the company’s resilience amid fluctuating market conditions.
The positive financial performance translated into strong net income and adjusted net income figures for the quarter. Tradeweb Markets reported $101.9 million in net income, an impressive 24.9% increase on the same period last year. Moreover, the adjusted net income amounted to $123.7 million, up 10.8% year-on-year.
In terms of adjusted EBITDA, the company reported $163.1 million, surpassing the $155.6 million recorded in the corresponding period last year.