Tradeweb Markets, the online fixed-income trading platform, has posted a new record for average daily trading volumes in the first quarter of 2022.
Tradeweb’s trading volumes hit $1.23 trillion per day last month, up 5 percent from $1.17 trillion per day in February 2022, and also higher year-over-year compared to the figures of March 2021.
In terms of total trading volume, Tradeweb in March managed to top its previous reading for monthly volumes, coming in at $28.2 trillion, up 25 percent from $22.6 trillion in February.
For the first quarter of 2022, total trading volume was a record $73.1 trillion and ADV also hit an all-time high at $1.17 trillion, an increase of 10.9% YoY. Further, preliminary average variable fees per million dollars of volume traded of $2.93.
The New York-based company said the ADV metric was robust as client activity of sessions-based trading reached a monthly record and usage of streams liquidity was buoyed this year by the recently closed purchase of the Nasdaq’s fixed income business.
“For the first quarter of 2022, Tradeweb reported record activity across most product groups, including: U.S. and European government bonds; swaps/swaptions ≥ 1-year; fully electronic U.S. High Grade and fully electronic U.S. High Yield credit; European credit; U.S. and European ETFs; and Repurchase agreements,” the company explains.
Trading volumes of US and European government bonds rose on a yearly basis to $149 billion (up 30 percent) and $38 billion (up 22 percent) respectively. Higher turnover in American bonds was driven by a combination of factors including a record activity across institutional and wholesale markets. Global government bond trading also remained strong amidst heightened rates market volatility as yields continued to rise across developed markets.
The YoY gains at Tradeweb, which is majority-owned by Refinitiv, were also partly driven by its equities business. US ETF ADV was up 17% YoY to $8.3 billion and European ETF ADV also increased 25% YoY to $3.8 billion.
Continued growth of institutional clients contributed to higher volumes in global Repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility weighed on the overall market. Retail money markets activity remained measured in the low interest rate environment, despite its recent pickup.