TradeWeb, one of the largest operators of exchanges for interest rates, equities, and money markets, has announced the trade volumes for June which shows a significant increase as compared to the previous month and also when compared to the same month last year.
The company reported a total trading volume of $23.1 trillion which is 17.8% higher than the trading volume reported in May 2021 and this shows how the traders are returning to the markets after being risk-averse and away from the markets during the course of the pandemic.
The average daily volume (ADV) for the month was $1.02 trillion which is an increase of 34.7% year on year. The company also reported a quarterly volume of $62 trillion with an ADV of $976.9 billion which is 25.5% more when compared to the same month last year.
Lee Olesky, the Tradeweb CEO, said: “We see client usage of new and legacy Tradeweb protocols and services continuing to evolve. Our diverse approach was on full display in June, as new records were set in key products across credit, rates, and equities. We also saw continued momentum in U.S. credit, capturing record market share and effectively occupying a larger slice of what’s been a growing pie.”
U.S. ETF ADV was up 13.9% YoY to $5.5bn and European ETF ADV was up 18.4% YoY to $2.4bn and the company said that the client growth and adoption, especially among the institutional clients was the key factor in the growth of the trading volumes in equities.
The trading volumes at the various exchanges around the world are being closely watched as the pandemic last year had made a lot of people risk-averse, People wanted to keep their money safe and did not want to dabble in the markets for fear of losing money when they were already losing jobs. This is the reason why we saw a drop in trading volumes last year. With the pandemic receding slowly and steadily over the last few months, it is expected that the volumes would start picking up and this is what is being reported by many exchanges as well. We will need to wait and see for some more months to verify whether this trend continues onwards and upwards as more and more new asset classes involving crypto are being added by exchanges in the hope that they would help to boost the trading volumes.