Tradeweb Hits $37.5T Total and $1.94T Daily Trading in June '24

NEW YORK, July 8, 2024. Tradeweb Markets Inc. (Nasdaq: TW), a leading worldwide provider of electronic marketplaces for rates, credit, stocks, and money markets, announced today that its total trading volume for June 2024 has reached an astonishing $37.5 trillion. The month's average daily volume (ADV) was $1.94 trillion, representing a 40.9% year-over-year rise. In the second quarter of 2024, Tradeweb recorded a total trading volume of $121.0 trillion and an ADV of $1.92 trillion, representing a phenomenal 48.3% YoY gain. The preliminary average variable charge per million dollars of volume traded was $2.43.

Tradeweb CEO Billy Hult remarked on the results, saying, In Q2, Tradeweb had double-digit YoY volume increase in rates, credit, money markets, and stocks. We set new quarterly ADV records in US government bonds, fully electronic US high yield, and repo, while also capturing a record proportion of fully electronic US high-grade credit. The robust June results, led by a 54% YoY rise in rates ADV and ongoing momentum in credit ADV, which is up 67% YoY, reflect our progress.

Market volatility and greater use of alternative trading methods contributed to these outcomes, indicating high customer participation.

June 2024 Highlights:

Rates: Tradeweb had tremendous growth in the rates sector. U.S. government bond ADV climbed 50.8% year on year to $210.7 billion, driven by growth across all client sectors and greater use of different methods. The inclusion of r8fin further increased wholesale volumes. European government bond ADV increased 17.4% year on year to $50.5 billion, owing to market volatility and strong primary issuance in Europe and the United Kingdom.

Mortgage ADV climbed 22.9% YoY to $208.9 billion, owing to higher To-Be-Announced (TBA) volumes from hedge fund activity and greater basis trading. The securitized products platform experienced record customer involvement, and mortgage originator volumes reached a new high.

Swaps/swaptions > 1-year ADV increased 56.0% year on year to $437.3 billion, while total rates derivatives ADV increased 69.1% to $782.2 billion. This expansion was spurred by global political instability, upcoming central bank policy choices, and a 41% rise in compression activity, which has a lower charge per million. Client trading activity on the request-for-market (RFM) protocol grew, but inflation and emerging market swap growth remained robust. However, 2Q24 compression activity was lower than 1Q24.

Credit: Fully electronic U.S. credit ADV jumped 41.4% year on year to $7.0 billion, while European credit ADV increased 24.2% to $2.5 billion. Credit volumes in the United States were driven by increasing customer usage, notably in request-for-quote (RFQ), portfolio trading, and Tradeweb AllTrade®. Tradeweb had an 18.9% share of completely electronic US high-grade TRACE and an 8.1% share of fully electronic US high-yield TRACE. In Europe, portfolio trading and the SNAP IOI tool experienced a rise in customer use.

Municipal bond ADV increased 30.4% year on year to $410 million, beating the wider market, with institutional and retail volumes exceeding 20% YoY growth despite solid issuance.

Credit Derivatives ADV grew by 92.0% year on year to $14.7 billion, owing to increasing hedge fund and systematic account activity, as well as increased credit volatility, which led to greater credit default swaps activity at swap execution facilities (SEF) and multilateral trading facilities (MTFs).

Equities: U.S. ETF ADV fell 11.1% YoY to $8.1 billion, while European ETF ADV increased 18.1% YoY to $2.8 billion. ETF market volumes were modest owing to minimal market volatility. On Tradeweb, U.S. ETF institutional volumes remained robust, but wholesale market volumes fell. European ETF volumes increased as customers adopted automated rules-based trading techniques.

Money Markets: Repo ADV climbed 20.8% year on year to $599.2 billion, driven by increasing customer activity on Tradeweb's electronic repo trading platform. The combination of quantitative tightening, increasing collateral availability, and current rate market activity pushed more assets away from the Federal Reserve's reverse repo facility and into money markets. Retail money market activity remained solid as markets expected fewer aggressive Fed rate reductions.

For detailed information and statistics on historical monthly, quarterly, and annual ADV and total trading volume across asset classes, see Tradeweb Monthly Activity Reports.

About TradeWeb Markets

Tradeweb Markets Inc. (Nasdaq: TW) is a worldwide pioneer in electronic marketplaces for interest rates, credit, stocks, and money markets. Since its inception in 1996, Tradeweb has given customers in the institutional, wholesale, and retail sectors market access, to data and analytics, electronic trading, straight-through processing, and reporting for over 50 products. Tradeweb's sophisticated technology improves price discovery, order execution, and trade processes, enabling larger scale and lower risk in client trading operations. Over the last four fiscal quarters, the business has served over 2,500 customers in more than 70 countries, facilitating an average notional value of more than $1.7 trillion transacted every day.