Tradeweb Markets reported an exceptional performance for September, with its average daily volume (ADV) climbing to $2.63 trillion, representing a 68% year-over-year increase. The platform’s total trading volume reached a staggering $56.1 trillion for the month, reflecting robust growth across multiple asset classes. This surge was fueled by increased activity in the rates and credit trading segments, showcasing Tradeweb’s strength in the electronic trading marketplace.
Impressive Gains Across Rates Trading
The rates trading segment led the growth, with ADV in U.S. government bonds jumping by 59% YoY to $232.2 billion. Institutional and retail investors significantly contributed to this surge as market volatility prompted heightened trading activity. Similarly, European government bonds experienced a healthy 16.7% YoY growth in ADV, spurred by elevated trading in UK Gilts.
Another standout was mortgage trading, which hit new highs as its ADV rose by 32% YoY to $240.2 billion. The Federal Reserve’s September meeting generated substantial market volatility, driving trading volumes higher. Additionally, swaps and swaptions, a major component of Tradeweb’s rates trading, saw a 73% YoY rise in ADV to $576.3 billion, reflecting the growing demand for derivatives as traders navigated central bank policies and hedging strategies.
Credit Trading Sees Significant Uptick
Tradeweb’s credit trading also posted notable gains in September. U.S. credit ADV soared by 77% YoY to $8.6 billion, while European credit ADV increased by 28% YoY to $2.7 billion. This growth was largely driven by the adoption of electronic trading models, including request-for-quote systems and portfolio trading. Additionally, the municipal bonds segment grew by 7.7% YoY, reaching $385 million in ADV, as demand for diversified fixed-income assets rose.
Steady Growth in Credit Derivatives
The credit derivatives segment experienced a surge in trading volumes, with September’s ADV up by nearly 50% YoY to $54.9 billion. Increased hedge fund participation and fluctuating credit spreads contributed to this rise, highlighting Tradeweb’s position as a key venue for executing complex credit strategies.
Expansion in Equities and Repo Markets
Tradeweb’s equities segment also posted growth, with U.S. exchange-traded fund (ETF) ADV climbing by 2.7% YoY to $7.6 billion. Meanwhile, European ETF ADV expanded by 39.8% YoY to $3.1 billion, driven by an uptick in client demand and enhanced trading functionalities.
Repo trading, another area of strength for Tradeweb, benefited from a shift in market dynamics. The repo segment saw substantial growth as quantitative tightening and increased collateral supply encouraged participants to move from the Federal Reserve’s reverse repo facility to more traditional money markets.
