Tradeweb Markets reported a total trading volume of $40.5 trillion for July 2024, with an average daily volume (ADV) surging 43.5% year-over-year (YoY) to $1.82 trillion. US government bond ADV jumped 47.4% YoY to $206.1 billion. This positive performance was reportedly boosted by the rates sector.

Rates Sector Leads Growth

According to the company, the trading platform experienced favorable market conditions and increased adoption across various client sectors during the period. The addition of r8fin positively impacted wholesale volumes. European government bond ADV also posted a 16.5% YoY rise to $42.9 billion, reportedly driven by political elections in Europe and the UK, as well as an active primary market in early July.

The mortgage sector reported an ADV increase of 17.6% YoY to $196.8 billion. Robust roll trading activity and significant participation from fast-money accounts boosted the record activity, while specified pool trading volumes also increased YoY.

Swaps and swaptions with maturities of one year or more experienced a 38.9% YoY ADV growth to $351.5 billion. Total rates derivatives ADV was up 85.7% YoY to $671.4 billion. This growth was driven by institutional client activity and market volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term due to global political uncertainties and active central bank discussions on rate movements.

In the credit sector, fully electronic US credit ADV rose 38.3% YoY to $6.7 billion, while European credit ADV increased by 10.5% YoY to $2.1 billion. Tradeweb captured significant market shares in US high-grade and high-yield TRACE, reaching 17.8% and a record 9.1%, respectively.

Municipal bonds ADV

Municipal bonds ADV increased by 21.6% YoY to $363 million, outperforming the broader market's 11% YoY growth. Tradeweb's institutional and retail volumes contributed to this robust performance. Credit derivatives ADV surged 44.0% YoY to $10.8 billion, driven by increased hedge fund and systematic account activity amidst heightened credit volatility.

The equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term sector showed mixed results. US ETF ADV dipped slightly by 1.7% YoY to $8.0 billion, whereas European ETF ADV rose by 9.3% YoY to $2.3 billion. Despite muted overall market volumes, Tradeweb's automated rules-based trading protocol saw increased client adoption in Europe.

The money markets sector saw a significant rise in repo ADV, which climbed 25.3% YoY to $621.8 billion. Record global repo activity was driven by increased client activity on Tradeweb's electronic repo trading platform, influenced by quantitative tightening and shifts in market activity.