Tradeweb, a leading fixed income, derivatives and ETF electronic trading platform for institutional, wholesale and retail investors reported today total trading volume for December of $18.2 trillion (tn) across all marketplaces for rates, credit, equities and money markets, according to a press release.
Tradeweb fully electronic trading captured a record 10.6% of U.S. High Grade TRACE and 4.5% of U.S. High Yield TRACE in December. Rates Derivatives captured record SEF market share for the month. Average daily volume (ADV) for the month was $834.5 billion (bn), an increase of 28.0 percent (%) year over year (YoY). For the fourth quarter of 2020, Tradeweb reported preliminary average variable fees per million dollars of volume traded of $2.51. Tradeweb also reported record ADV of $838.0bn, up 15.3% YoY, for the year ending December 31, 2020, with total annual volumes of $211.2tn.
For the fourth quarter of 2020, Tradeweb reported record ADV of $897.9bn, up 30.9% YoY. Tradeweb captured quarterly record TRACE market share in U.S. High Grade and U.S. High Yield bonds, with fully electronic representing the majority of each. Quarterly ADV records were also set in U.S. High Yield, Chinese bonds and Repurchase agreements.
Tradeweb CEO, Lee Olesky, commented: “A strong December capped off a record quarter for Tradeweb, with all of our asset classes contributing. While our volumes in 2020 were impacted by a variety of factors including remote work, massive debt issuance and periods of market volatility, our fourth quarter success was clearly driven by broader adoption of electronic trading tools and protocols. We believe this trend towards more electronic trading will continue into 2021.”
- U.S. government bond ADV was up 27.5% YoY to $92.0bn, and European government bond ADV was up 21.0% YoY to $20.4bn.
- Trading activity in U.S. Treasuries continued to be supported by growth in execution via firm streams as well as new client acquisition. Higher global government bond issuances continued to support robust secondary trading, while a clearer outlook regarding the COVID-19 vaccines, the U.S. election, and Brexit also contributed to heightened activity.
- Mortgage ADV was up 23.7% YoY to $183.4bn.
- Low mortgage rates continued to support new home sales and refinancing activity continued to drive origination, furthering trends that began this past summer.
- Rates derivatives ADV was up 14.6% YoY to $195.8bn.
- Global swaps market share continued to increase, driven by gains in trading of swaps ≥1 yr as growth initiatives such as trading via request-for-market (RFM) and EM swaps continued to see more traction. Trading of alternative risk-free rates also saw solid growth. Growth in swaps <1 yr volumes was driven by both FRA and OIS trading.
- U.S. Credit ADV was up 28.0% YoY to $4.3bn and European credit ADV was up 22.7% YoY to $1.2bn.
- Anonymous all-to-all trading and portfolio trading on the Tradeweb platform, as well as anonymous sessions-based trading, remained strong in both U.S. and European Credit, while U.S. High Yield saw record activity in portfolio trading. Fully-electronic activity on the U.S. Credit platform captured record TRACE market share in both High Grade and High Yield. TRACE High Grade market share was 19.3% (10.6% fully electronic) and TRACE High Yield market share was 6.9% (4.5% fully electronic).
- Credit derivatives ADV was up 2.5% YoY to $5.2bn.
- Macro tailwinds continued to drive solid trading activity.
- U.S. ETF ADV was up 9.5% YoY to $4.5bn and European ETF ADV was up 20.6% YoY to $2.0bn.
- Continued new client adoption as well as year-end activity contributed to growth across our Global ETF business.
- Repurchase Agreement ADV was up 50.4% YoY to $304.5bn, while retail money markets activity remained pressured by the low interest rate environment.
- Global Repo activity continued to grow, driven in part by the addition of new dealers and participants on our global institutional Repo platform.
To access the complete report containing additional data points and commentary, please go to https://www.tradeweb.com/newsroom/monthly-activity-reports/.