October 2024 ADV up 34.1% YoY
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today reported total trading volume for the month of
October 2024 of $54.7 trillion (tn)1. Average daily volume (ADV)
for the month was $2.35tn, an increase of 34.1 percent (%)
year-over-year (YoY). Excluding the impact of the ICD acquisition,
which closed on August 1, 2024, total ADV for the month of October
was up 18.4% YoY.
In October 2024, Tradeweb records included:
- ADV in European government bonds
October 2024 Highlights
RATES
- U.S. government bond ADV was up 34.9% YoY to $220.8 billion
(bn). European government bond ADV was up 26.3% YoY to $53.4bn.
- U.S. government bond volumes were supported by record volume in
our institutional business, as well as strong growth in wholesale
and retail volumes. Growth was supported by increased adoption
across a wide range of protocols, heightened activity across a
diverse set of client types, and favorable market conditions.
Strong European government bond market activity, as well as a
growing client base, contributed to record European government bond
volumes on the platform.
- Mortgage ADV was up 28.2% YoY to $248.6bn.
- To-Be-Announced (TBA) volumes hit a new record, fueled by
continued strong dollar-roll activity and increased macro-rate
volatility. October also set a record for the number of specified
pool lists executed on the platform, underscoring the growing
adoption of our offering.
- Swaps/swaptions ≥ 1-year ADV was down 9.4% YoY to $416.6bn and
total rates derivatives ADV was up 5.9% YoY to $793.2bn.
- Swaps/swaptions ≥ 1-year activity was down due to a 40% YoY
decline in compression activity, which carries a lower fee per
million. Quarter-to-date compression activity as a percentage of
swaps/swaptions is trending lower than 3Q24. Strong risk trading
volume in swaps/swaptions was driven by volatile markets in the run
up to the UK budget and the U.S. election. Clients continued to
utilize the request-for-market (RFM) protocol for risk transfers.
Emerging markets swaps growth remained strong.
CREDIT
- Fully electronic U.S. credit ADV was up 32.7% YoY to $7.4bn and
European credit ADV was up 17.6% YoY to $2.5bn.
- U.S. credit volumes were driven by increased client adoption,
most notably in request-for-quote (RFQ), portfolio trading and
Tradeweb AllTrade®. Tradeweb captured 17.3% and 7.0% of fully
electronic U.S high grade and U.S. high yield TRACE, respectively,
as measured by Tradeweb. European credit volumes were driven by
record volumes in Tradeweb’s Automated Intelligent Execution tool
(AiEX) and Tradeweb AllTrade®.
- Municipal bonds ADV was down 16.7% YoY to $394 million (mm).
- Municipal bonds ADV was down YoY given lower tax-loss
harvesting compared to the prior year as well as subdued secondary
volumes due to record new issuance in October.
- Credit derivatives ADV was up 13.0% YoY to $13.6bn.
- Increased hedge fund and systematic account activity, along
with heightened credit volatility, led to increased swap execution
facility (SEF) and multilateral trading facility (MTF) credit
default swaps activity.
EQUITIES
- U.S. ETF ADV was down 9.0% YoY to $6.5bn and European ETF ADV
was up 10.8% YoY to $2.8bn.
- European ETF volumes were higher as clients continued to
embrace our automated request-for-quote (RFQ) trading tools. U.S.
secondary market volumes were muted due to investor sentiment
leading up to the U.S. election.
MONEY MARKETS
- Repo ADV was up 28.7% YoY to $678.4bn.
- A continued increase in client activity on Tradeweb’s repo
trading platform drove elevated global repo activity. The
combination of elevated funding rates, an unwind of the Fed’s
balance sheet, and current rates market activity continued to shift
more assets from the Fed’s reverse repo facility to money markets.
Retail money markets activity remained strong, as investors
adjusted to the potential for continued rates cuts.
- Other Money Markets ADV was up YoY to $294.6bn.
- Other money markets volume growth was driven by the inclusion
of ICD volumes in October 2024.
Please refer to the report posted to
https://www.tradeweb.com/newsroom/monthly-activity-reports/ for
complete information and data related to our historical monthly,
quarterly and yearly ADV and total trading volume across asset
classes.
About Tradeweb Markets Tradeweb Markets Inc. (Nasdaq: TW)
is a leading, global operator of electronic marketplaces for rates,
credit, equities and money markets. Founded in 1996, Tradeweb
provides access to markets, data and analytics, electronic trading,
straight-through-processing and reporting for more than 50 products
to clients in the institutional, wholesale, retail and corporates
markets. Advanced technologies developed by Tradeweb enhance price
discovery, order execution and trade workflows while allowing for
greater scale and helping to reduce risks in client trading
operations. Tradeweb serves more than 2,800 clients in more than 70
countries. On average, Tradeweb facilitated more than $1.9 trillion
in notional value traded per day over the past four fiscal
quarters. For more information, please go to www.tradeweb.com.
Basis of Presentation All reported amounts are presented
in U.S. dollars, unless otherwise indicated. In determining the
reported U.S. dollar amounts for non-U.S. dollar denominated
securities, the non-U.S. dollar amount for a particular month is
translated into U.S. dollars generally based on the monthly average
foreign exchange rate for the prior month. Volumes presented in
this release exclude volumes generated by (i) unbilled trial
agreements, (ii) products billed on an agreement basis where we do
not calculate notional value, and (iii) products that are not
rates, credit, equities or money markets products. Please see the
footnotes on page 3 of the full report for information regarding
how we calculate market share amounts presented in this
release.
Market and Industry Data This press release and the
complete report include estimates regarding market and industry
data that we prepared based on our management’s knowledge and
experience in the markets in which we operate, together with
information obtained from various sources, including publicly
available information, industry reports and publications, surveys,
our clients, trade and business organizations and other contacts in
the markets in which we operate. In presenting this information, we
have made certain assumptions that we believe to be reasonable
based on such data and other similar sources and on our knowledge
of, and our experience to date in, the markets in which we operate.
While such information is believed to be reliable for the purposes
used herein, no representations are made as to the accuracy or
completeness thereof and we take no responsibility for such
information.
Forward-Looking Statements This release contains
forward-looking statements within the meaning of the federal
securities laws. Statements related to, among other things, our
outlook and future performance, the industry and markets in which
we operate, our expectations, beliefs, plans, strategies,
objectives, prospects and assumptions and future events are
forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed under the heading “Risk Factors”
in the documents of Tradeweb Markets Inc. on file with or furnished
to the SEC, may cause our actual results, performance or
achievements to differ materially from those expressed or implied
by these forward-looking statements. In particular, preliminary
average variable fees per million dollars of volume traded are
subject to the completion of management’s final review and our
other financial closing procedures and therefore are subject to
change. Given these risks and uncertainties, you are cautioned not
to place undue reliance on such forward-looking statements. The
forward-looking statements contained in this release are not
guarantees of future events or performance and future events, our
actual results of operations, financial condition or liquidity, and
the development of the industry and markets in which we operate,
may differ materially from the forward-looking statements contained
in this release. In addition, even if future events, our results of
operations, financial condition or liquidity, and events in the
industry and markets in which we operate, are consistent with the
forward-looking statements contained in this release, they may not
be predictive of events, results or developments in future
periods.
Any forward-looking statement that we make in this release
speaks only as of the date of such statement. Except as required by
law, we do not undertake any obligation to update or revise, or to
publicly announce any update or revision to, any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this release.
1 Tradeweb acquired Yieldbroker, r8fin and ICD on August 31,
2023, January 19, 2024 and August 1, 2024, respectively. Total
volume reported includes volumes from each acquired business
subsequent to the date of the applicable acquisition.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241105822255/en/
Media: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor: Ashley Serrao, Tradeweb +1 646 430 6027
Ashley.Serrao@Tradeweb.com
Sameer Murukutla, Tradeweb +1 646 767 4864
Sameer.Murukutla@Tradeweb.com
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