Tradeweb Markets Inc. has recently disclosed its November 2023 trading figures, highlighting its significant role in the digital marketplace for various sectors, including rates, credit, equities, and money markets. The company recorded a staggering trading volume of $38.2 trillion for the month, with a daily average volume reaching an all-time high of $1.80 trillion. This represents a remarkable year-over-year increase of 59.2%.
Tradeweb Records $38.2 Trillion in November Trading Volume
The company’s success in the rates market was particularly noteworthy. The daily average volume for U.S. government bonds grew by 19.5% year-over-year, amounting to $163.7 billion. Similarly, the European government bonds saw a 30.5% year-over-year increase, totalling $44.8 billion.
Factors contributing to this growth include an expanded client base, diverse trading methodologies on the institutional platform, and ongoing market volatility. Additionally, the retail market, buoyed by higher interest rates, was key in driving these high volumes.
The mortgage-backed securities segment also performed well, with a 16.7% year-over-year increase in average daily volume, reaching $188.3 billion. This was primarily due to significant volumes from hedge fund accounts and active roll trading.
Swaps and swaptions with over one year of maturity witnessed an impressive 178.4% surge in daily average volume, totalling $580.8 billion. The overall rates derivatives also saw a 132.6% increase, reaching $795.1 billion.
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Heightened client activities, a notable increase in compression activities, and strong results in areas like global inflation swaps and emerging market swaps fueled these record figures.
In the credit market, there was a notable rise in fully electronic trading volumes. The U.S. credit market saw a 32.0% increase year-over-year in its average daily volume, reaching $6.1 billion. The European credit market also experienced a 29.7% increase, reaching $2.3 billion.
Particularly, U.S. High-Grade trading achieved record volumes, indicating a growing client preference for Tradeweb’s trading protocols. However, municipal bonds saw a slight 0.2% decline in average daily volume, totalling $475 million, likely due to lower retail activity in the face of reduced yields.
Positive trends were also observed in the equities and money markets. The U.S. ETF market witnessed a 4.5% year-over-year growth in average daily volume, reaching $7.0 billion, while the European ETF market grew by 10.0% to $2.6 billion.
