Market operator Tradeweb has reported today total trading volume for November of US$18.7 trillion across its electronic marketplaces for rates, credit, equities and money markets. Average daily volume (ADV) for the month was $958.7 billion, up 37.2% year on year (YoY) its second-highest month ever.
The firm has had a stellar year with its top three monthly ADV records all set in 2020:
1) US$1.0 trillion in March 2020
2) US$958.7 billion in November 2020
3) $910.8 billion in October 2020
Tradeweb CEO, Lee Olesky, said, “In November, Tradeweb experienced strong double-digit growth in ADV across rates, credit, money markets and exchange-trade funds (ETFs). This furthered the broad-based growth we reported last month and continued to reflect both higher underlying volumes and increased adoption of our platforms and solutions.
US government bond ADV was up 23.2% YoY to US$100.1 billion, and European government bond ADV was up 25.4% YoY to US$27 billion. Trading activity in US Treasuries exceeded US$100 billion ADV for the first time, supported by further growth in execution via firm streams as well as new client acquisition. Higher global government bond issuances, the US election, and news of COVID-19 vaccines reportedly helped to stoke secondary trading.
Rates derivatives ADV was up 25.6% YoY to US$224.5 billion. Trading in swaps with tenor ≥ 1Y reached its highest levels since March 2020, with more than half the duration traded on SEF done via Tradeweb Markets, which Clarus Financial reported was a record share. Trading on risk-free rates and trading via request-for-market (RFM) list continued to see solid growth.
In corporate bond markets, US credit ADV was up 42.7% YoY to US$5.6 billion and European credit ADV was up 19.5% YoY to US$1.8 billion. Record trading in anonymous all-to-all trading and portfolio trading on the Tradeweb platform as well as anonymous sessions-based trading drove growth in US credit, while a new record in portfolio trading added to growth in European credit. US and European credit reportedly set new records in volume. TRACE investment grade (IG) market share rose to 10.3% fully electronic and TRACE High Yield market share rose to 3.9% fully electronic.
Credit derivatives ADV was up 87.6% YoY to US$12.0 billion. Strong macro currents continued to drive strong trading activity.
“Our share in US credit trading has climbed steadily throughout 2020. In November, our monthly US [investment grade] TRACE share [is] nearly double where we were just two years ago,” said Olesky.
Mortgage ADV was up 27.2% YoY to US$226.4 billion, with low mortgage rates continuing to support new home sales and refinancing activity continuing to drive origination, furthering trends that began in the summer.
Repurchase Agreement ADV was up 68.5% YoY to US$330.4 billion, while retail money markets activity remained pressured by the low interest rate environment. Looking globally, repo activity continued to grow, which Tradeweb noted was driven in part by the addition of new dealers and participants on its global institutional repo platform.
©The DESK 2020
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