The global operator of electronic marketplaces, Tradeweb Markets, has released its August 2023 trading report, highlighting a total trading volume of USD $33 trillion and an average daily trading volume (ADV) of USD $1.44 trillion.
Under the rates segment, the ADV for US government bonds increased 14.9% year-over-year, reaching USD $142.7 billion. Besides that, the ADV for the European government bonds surged 19% year-over-year to USD $32.9 billion. According to the company’s statement, the growth was driven by robust activity across all sectors, high interest rates, and sustained market volatility.
High Interest Rate Volatility
Additionally, the swaps market for maturities that are greater than one year skyrocketed 125.4% year-over-year to USD $381.8 billion. The total rates derivatives ADV increased 89% year-over-year, reaching USD $535 billion. This record volume is reportedly attributed to heightened interest rate volatility , especially in short-term instruments.
Tradeweb made significant strides in credit markets. The fully electronic US credit ADV surged 38% year-over-year to USD $4.8 billion, while European credit ADV climbed 48.5% year-over-year to USD $1.6 billion. This growth was driven by continued client adoption across Tradeweb’s protocols, the company stated.
A week ago, Finance Magnates reported that Tradeweb Markets had successfully completed its AUD $125 million all-cash acquisition of Yieldbroker, an Australian trading platform specializing in government bonds and interest rate derivatives. With this acquisition, the company stated that Yieldbroker’s clients will gain access to Tradeweb’s multi-asset marketplace, liquidity, and technology.
Tradeweb Expands Global Operations
This acquisition came on the heels of Tradeweb’s strong financial performance in the second quarter of the year, with a year-over-year increase of 5% in revenue, reaching USD $310 million. Notably, the money markets segment saw remarkable growth, with an increase of 30% in revenue compared to the previous year’s quarter.
Additionally, Tradeweb reported a notable year-over-year increase of 10% in the average daily volume (ADV) during the second quarter, amounting to USD $1.3 trillion. This figure represents a slight decline compared to USD $1.4 trillion reported in the first quarter, which was attributed to increased revenue from US government bonds and retail money markets.
During the second quarter, Tradeweb made strategic moves to further enhance its market presence. The company entered into collaborations with Bloomberg and MarketAxess to establish an independent company participating in public procurement procedures in the EU. Furthermore, the company partnered with FTSE Russell to launch benchmark closing prices for European government bonds.
