March 2023 ADV up 23.0% YoY
First Quarter 2023 ADV up 16.2% 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 March 2023 of $34.7 trillion (tn). Average daily volume (ADV) for the month was a record $1.51tn, an increase of 23.0 percent (%) year-over-year (YoY), despite continued foreign exchange headwinds. For the first quarter of 2023, total trading volume was $85.3tn and ADV was a record $1.36tn, an increase of 16.2% YoY, with preliminary average variable fees per million dollars of volume traded of $2.71.1
In March 2023, Tradeweb records included:
- ADV in total rates derivatives
- ADV in swaps/swaptions ≥ 1-year
- ADV in emerging markets interest rate swaps and global inflation swaps
- ADV in global repurchase agreements
- ADV in retail U.S. government bonds
- ADV in retail money markets
For the first quarter of 2023, Tradeweb records included:
- ADV in European government bonds
- ADV in swaps/swaptions ≥ and < 1-year
- ADV in fully electronic U.S. High Grade credit
- ADV in U.S. credit Tradeweb AllTrade®, including all-to-all request-for-quote (RFQ)
- ADV in global portfolio trading
- ADV in equity convertibles/swaps/options
- ADV in repurchase agreements
- ADV in retail U.S. government bonds
- ADV in retail money markets
March 2023 Highlights
U.S. government bond ADV was up 1.5% YoY to $150.9 billion (bn). European government bond ADV was up 11.8% to $42.4bn.
- Record retail U.S. government bond activity and strong institutional volumes were offset by declines in wholesale trading. Higher interest rates continued to drive trading in the retail market. U.S. and European government bond volumes were supported by a significant rise in rates market volatility.
Mortgage ADV was down 10.6% YoY to $166.2bn.
- While market uncertainty and volatility weighed on overall activity, institutional specified pool trading set a new record due to growing client engagement.
Swaps/swaptions ≥ 1-year ADV was up 42.2% YoY to $355.0bn and total rates derivatives ADV was up 51.7% to $609.1bn.
- Record volume in swaps/swaptions ≥ 1-year was driven in part by a surge in interest rate volatility, particularly in shorter dated instruments and higher compression activity. Strong volumes continued to be supported by record activity in both global inflation and emerging markets swaps, as well as robust client adoption of the request-for-market (RFM) protocol.
Fully electronic U.S. credit ADV was up 18.2% YoY to $4.4bn and European credit ADV was down 14.9% to $1.8bn.
- Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including RFQ, Tradeweb AllTrade and portfolio trading. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 12.9% and 6.0%, respectively. Heightened market volatility weighed on European credit volumes.
Municipal bonds ADV was up 6.3% YoY to $285 million (mm).
- Municipal volumes reflected healthy institutional and retail client activity. Market volatility and elevated interest rates continued to boost volumes overall.
Credit derivatives ADV was up 11.9% YoY to $39.4bn.
- Semiannual rolling activity as well as market-wide volatility continued to boost volumes overall.
U.S. ETF ADV was up 2.6% YoY to $8.5bn and European ETF ADV was down 25.8% to $2.8bn.
- Strong U.S. institutional ETF activity, driven by further adoption of Tradeweb’s RFQ protocol, was more than offset by declining wholesale volumes. European ETF volumes reflected declining overall market volumes.
Repurchase agreement ADV was up 23.0% YoY to $444.5bn.
- Continued client adoption of Tradeweb’s electronic trading solutions drove record global repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity reached a record high as interest rates remained elevated.
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 40 products to clients in the institutional, wholesale and retail 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 approximately 2,500 clients in more than 65 countries. On average, Tradeweb facilitated more than $1.1 trillion in notional value traded per day over the past four 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 based on the monthly average foreign exchange rate for the prior month. 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.
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 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 performance and 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 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 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 See pg. 7 of the report available at https://www.tradeweb.com/newsroom/monthly-activity-reports/ for the detailed breakdown of average variable fees per million dollars of volume traded for each underlying asset class.