Tradeweb Markets Inc. reported a significant surge in trading volumes for December 2023, hitting an impressive $28.9 trillion. This figure represents a growth of 43.3% year-on-year. Tradeweb’s surge in trading volumes, encompassing rates, credit, equities, and money markets, underscores an exceptional trend in the financial landscape.
The rates market for the electronic marketplace operator witnessed a significant uptrend, with US government bond ADV rising 39.8% YoY to $159.5 billion. This boost was driven by diverse trading protocols and market volatility .
European government bond ADV increased 21.5% YoY to $33.4 billion, driven by ongoing market fluctuations and strong hedge fund activity. The mortgage sector experienced a notable surge of 34.1% YoY, reflecting a rally in the rates market and heightened client activities.
Tradeweb’s Credit Segment
Across credit segments, Tradeweb observed an increase of 56.4% YoY in fully electronic US credit ADV, reaching $5.6 billion. Besides that, the European credit ADV surged 26.2% YoY to $1.6 billion.
Although municipal bond ADV slightly decelerated, US ETFs and European ETFs showed substantial increases of 44.3% and 29.1% YoY, respectively. Equities , especially US ETFs, demonstrated an upturn, highlighting high volumes among institutional platforms.
In the money markets segment, repurchase agreement ADV climbed 34.2% YoY to $508.7 billion. This upswing was caused by the increased adoption of Tradeweb's electronic trading solutions, global repo activity, and the prevailing market rates.
A Positive Growth Trajectory
Last November, Tradeweb Markets posted a substantial surge in trading volumes, reaching $38.2 trillion. The platform’s ADV reached $1.80 trillion, attributed to significant growth across various markets, including rates, credit, equities, and money markets.
Retail market involvement, especially in response to higher interest rates, contributed significantly to these high volumes, according to a report by Finance Magnates. Tradeweb observed remarkable growth in the rates market, with US government bond ADV rising 19.5% YoY to $163.7 billion.
Meanwhile, Bloomberg, MarketAxess, and Tradeweb announced the withdrawal from their joint venture last month. This initiative was aimed at transforming the fixed-income consolidated tape provider space in the European Union and the United Kingdom.
According to a report by Finance Magnates, the decision to end the joint venture was due to uncertainties involving crucial aspects of the joint project. Tradeweb's statement highlighted challenges related to the ambiguous outcome of the venture's product.
