Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the month of September 2022, which has seen continued strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.
In terms of total trading volume, Tradeweb in September bested its previous reading for monthly volumes, coming in at $25.1 trillion, up 7.3 percent from $23.4 trillion in August 2022.
Tradeweb’s trading volumes hit $1.20 trillion per day in September 2022, up 17.2 percent from $985 billion in aggregate for September 2021. The ADV figure was also higher on month-over-month basis compared to $1.02 trillion of August.
For the third quarter of 2022, total trading volume was $70.6 trillion and ADV was $1.10 trillion, an increase of 14.0 percent YoY, with preliminary average variable fees per million dollars of volume traded of $2.73.
In September, Tradeweb reported mixed ADV in both US and European government bond trading, as well as electronic US high grade credit and emerging market swaps.
Trading in US government bonds across institutional and wholesale markets was lower, while higher interest rates drove record volumes in the retail market. Record European government bond trading was driven by heightened rates market volatility and record activity in UK Gilts.
More specifically, Tradeweb reported that US government bond ADV was down 4 percent YoY to $124 billion, while its European counterpart was up 28 percent YoY to $41.6 billion.
Record global institutional client activity benefited from further adoption and elevated market volatility. Fully electronic U.S. Credit ADV was up 25.6 percent YoY to $4.2 billion and European credit ADV was down 15.3 percent YoY (down 1.6 percent YoY in EUR terms) to $1.7 billion.
U.S. and European credit volumes also reflected continued client adoption across Tradeweb protocols. Record electronic U.S. High Grade activity was buoyed by record volume in both portfolio trading and Tradeweb AllTrade’s all-to-all offering.
U.S. High Yield and European credit reported strong volumes into the end of the month following a lighter start of the month. Tradeweb captured a record 14.5 percent share of fully electronic U.S. High Grade TRACE and 5.7 percent share of fully electronic U.S. High Yield TRACE.
Municipal volumes remained robust, reflecting its second-highest month in institutional trading activity and continued demand from Tradeweb’s retail clients. Market volatility and sharply rising interest rates continued to boost volumes overall, the company noted