Trading Volumes Hit Fresh Records at Tradeweb Markets in October

Tradeweb Markets, the online fixed-income trading platform, has posted a new record for average daily trading volumes in October, largely thanks to activity in the US and European government bond markets, along with a surge in stocks trading.

Tradeweb’s trading volumes hit $1.26 trillion per day last month, up from $1.02 trillion in aggregate for the month of September 2021, and also higher year-over-year compared to the figures of October 2020.

In terms of total trading volume, Tradeweb in October 2021 managed to top its previous reading for monthly volumes, coming in at $25.6 trillion, up from $21.7 trillion in September.

Trading volumes of US and European government bonds rose on a yearly basis to $149 billion (up 77 percent) and $36 billion (up 32 percent) respectively. Higher turnover in American bonds was driven by a combination of factors including a record activity across institutional and wholesale markets and the addition of the Nasdaq Fixed Income business.

The YoY gains at Tradeweb, which is majority-owned by Refinitiv, were also partly driven by its equities business. US ETF ADV was up 5.4% YoY to $4.9 billion and European ETF ADV also increased 25.1% YoY to $2.2 billion.

Continued growth of institutional clients contributed to higher volumes. In the US, the strong growth in institutional trading more than offset declining wholesale activity as a result of waning equity market volatility.

Commenting on October trading volumes, Tradeweb CEO, Lee Olesky said: “October 2021 was a record-breaking month for Tradeweb, with incredibly strong results in government bonds, rates derivatives and credit. The wide range of execution protocols we offer within those asset classes was centrally important to our clients, with robust usage of streams, request-for-market, portfolio trading, request-for-quote, and session-based trading. We believe the market participants we serve want to execute electronically, as well as digitize more of their trading workflows.”

The New York-based company said last week it had revenues of $265.3 million in the three months through September 2021. On a constant currency basis, this figure was higher by 24% compared to $212 million in the prior year period.

Tradeweb posted $65.3 million in net income and $94.2 million adjusted net income for the quarter, up 38.8%, and 34.6% respectively from the third quarter of 2020.

Market volatility developments, which has been a standout phenomenon of the pandemic-era, bolstered activity in certain assets, even during the normally sluggish summer months. But a slowdown occurred as many counties eased some coronavirus restrictions which likely took some of investors’ interest.