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Tradeweb: September Average Daily Trading Volumes Set New Record; Records Set Across Multiple Asset Classes

Date 10/10/2019

Average daily volume (ADV) in September 2019 set a new record of $872.0 billion (bn), an increase of 47.3 percent (%) year over year (YoY). During the month, Tradeweb set several new individual records for U.S. government bonds, mortgages, U.S. credit, credit derivatives and European ETFs.

As additional context behind the numbers for select products traded:

Records Across Cash Rates: Tradeweb facilitated more than $606bn a day in rates trading alone in September 2019, a new record. Tradeweb has a uniquely diversified rates trading business which incorporates both cash and derivatives trading. The firm has an enduring strength in government bonds, which led to its launch of the Tradeweb ICE Treasury Closing Prices, and set new records in September for U.S. government bond trading of $88.3bn, an increase of 24.3% year over year. At the short end of the curve, Tradeweb has a significant money markets business, with repo trading rising 28.1% YoY to ADV of $210.7bn in September. Tradeweb also facilitates mortgages trading, which rose 39.0% YoY for another record ADV of $197.7 bn.

Rates Derivatives Surge: A predominantly manual market five years ago, trading in interest rate derivatives globally is now more electronic as a result of regulatory changes in the U.S., Japan and Europe. Today, interest rates derivatives are one of Tradeweb’s largest and fastest growing products with ADV of $290.8 billion in September, up 102.2% year over year. A key driver is the operational efficiencies electronic trading has to offer, including innovative functionality such as Tradeweb’s compression tool. Designed initially to help firms execute offsetting trades to eliminate line items at the clearing house, the tool is now also used to facilitate the migration of clients’ portfolios away from LIBOR, to trade across multiple CCPs, and to trade bespoke risk structures at larger size. As of this month, Tradeweb now also enables clients to execute multi-asset packages, streamlining the simultaneous execution of interest rate swaps, inflation swaps and government bonds in a single transaction. In addition, our collaboration with Cassini Systems and OpenGamma, provides buy-side firms with access to life-cycle cost analytics, including initial margin, collateral, clearing fees, brokerage and trading costs directly from Tradeweb.

A Credit Market Like No Other: Tradeweb gives corporate bond clients access to protocols and products that integrate together to create the most efficient, flexible and complete marketplace to trade and hedge risk. One such example is portfolio trading. Tradeweb was the first trading platform to offer portfolio trading for corporate bonds and has facilitated a total $21 billion in the first nine months of the year, with single trades as large as $1bn in notional value. This week, we announced new functionality, enhancing access to competitive portfolio liquidity globally. Integration with unique Tradeweb innovations throughout the full trade lifecycle supports Tradeweb portfolio trades. Pricing and spread analytics are powered by Ai-Price, which delivers real-time reference pricing for more than 18,000 corporate bonds. Post-trade, portfolio trades benefit from net-spotting, a service that compresses interest rate risk through seamless hedging on Tradeweb’s U.S. Treasury marketplace, providing clients with the opportunity to reduce their transaction costs.

The full Tradeweb Monthly Activity Report for September 2019 is available here.