Market operator Tradeweb has reported its total trading volume for January was US$20 trillion across its electronic marketplaces for rates, credit, equities and money markets. Average daily volume (ADV) for the month was a record Us$1 trillion, an increase of 29.5% year-on-year (YoY). This is the second month on record that Tradeweb ADV has exceeded US$1 trillion; the first was in March 2020.
Lee Olesky, CEO of Tradeweb said, “January 2021 was Tradeweb’s busiest month ever, and the second time in the last twelve months that our monthly ADV topped US$1 trillion. We saw increased momentum building on the back of our record Q4 activity, with heavy volumes across asset classes. While there were many factors contributing to this activity, there is no question that client-driven innovation continues to inspire stronger adoption of our tools and technology.”
The firm reported its US Treasury ADV was up 30.5% YoY to US$114.5 billion, and European government bond ADV was up 13.2% YoY to US$30.3 billion. It noted record trading via firm streams and session-based trading, and continued client acquisition. Heightened market activity was also reportedly driven by steady global government bond issuance and elevated volatility around global political events.
Mortgage ADV was reportedly up 20.1% YoY to US$249.1 billion as rising interest rates drove hedging activity, particularly at the start of the month, while continued Fed purchase commitments remain supportive of overall flows.
Interest rate derivatives ADV increased 33.9% YoY to US$262.3 billion, with trading via request-for-market (RFM) list and trading of alternative risk-free rates continuing to see solid growth, according to Tradeweb, along with the adoption of electronic trading of EM swaps. It noted that continued growth of sessions-based trading benefited swaps with tenor < 1 year.
In US credit ADV was up 49.6% YoY to US$6.6bn and European credit ADV was up 18.5% YoY to US$2.0bn.
US IG, HY and European credit saw reported record activity in global portfolio trading while anonymous all-to-all trading and anonymous sessions-based trading remained strong in both US and European Credit.
The US Credit platform captured record TRACE market share in IG with Tradeweb reporting TRACE IG market share at 20.5% (10.1% fully electronic) and TRACE High Yield market share was 6.2% (3.2% fully electronic). In credit derivatives ADV was up 10.8% YoY to US$9.5bn.
Repurchase agreement (repo) ADV was up 40.6% YoY to US$328.4bn with the firm noting this was driven in part by the addition of new dealers and participants on our global institutional Repo platform. Retail money markets activity remained pressured by the low interest rate environment.
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