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Tradeweb Markets’ volumes rebound in August, ADV disappoints

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Tradeweb Markets, the operator of electronic marketplaces for rates, credit, equities and money markets, has just reported its aggregated trading volumes for August 2022.

The group’s most recent volumes took a step forward during the month, resuming a consecutive string of increases after a pause in July . In particular, Tradeweb clients transacted a total of $23.4 trillion in August 2022, up 6.4 percent month-over-month from $22.0 trillion in July 2022.

The group’s average daily volumes (ADVs) came in at $1.02 trillion, down 6.4 percent month-over-month from $1.09 trillion per day in July. Over a yearly timetable, Tradeweb’s latest volume was higher by a factor of 13 percent year-over-year.

Tradeweb said its diversified offering supported double-digit growth, amidst a complex macroeconomic background driven by evolving central bank policy, sustained elevated volatility, economic concerns and a stronger dollar.

US government bond ADV was $124.2 billion, up 6 percent from $117.4 billion in the prior month, and was also slightly higher over a yearly basis. In a different pattern, European government bond ADV registered a drop in August with transactions declining 12 percent month-over-month to $27.5 billion, compared to $31.4 billion in July. The ADV figure was higher by 22.7 percent YoY (up 42.2% YoY in EUR terms).

As explained, client engagement in U.S. government bonds across institutional and wholesale markets remained high, while higher interest rates drove strong growth in the retail market. European government bond trading also continued to remain resilient amidst heightened rates market volatility.

The New York-based company added the ADV metric was robust due to strong sessions-based trading and usage of streams liquidity was buoyed by the recent purchase of the Nasdaq’s fixed income business. Global government bond trading also remained strong amidst heightened rates market volatility as yields continued to rise across developed markets.

The company also disclosed a weak mortgage activity amid uncertainty over the future of the Federal Reserve’s balance sheet. Mortgage ADV was down 8% YoY to $157 billion as declining issuance and higher yields continued to weigh on overall market activity.

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

US and European credit volumes reflected continued client adoption across all Tradeweb protocols, including Tradeweb AllTrade’s request-for-quote (RFQ) and portfolio trading. However, reported European volumes were impacted by a strong US dollar.

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