Tradeweb Markets Inc. has reported trading volumes for November 2023, reaffirming its position as a global operator of electronic marketplaces for rates, credit, equities, and money markets. The total trading volume for the month reached an impressive $38.2 trillion, with an average daily volume (ADV) at a record $1.80 trillion, marking a substantial Y-o-Y rise of 59.2%.

Retail Market Boosts Tradeweb's Volumes amid Higher Interest Rates

In the rates market, Tradeweb experienced notable growth, with U.S. government bond ADV rising 19.5% Y-o-Y to $163.7 billion. European government bond ADV also saw a significant rise of 30.5% Y-o-Y, reaching $44.8 billion. This surge in volumes was attributed to growth across all client sectors, increased adoption of diverse trading protocols on the institutional platform, and sustained rates of market volatility. The retail market, driven by higher interest rates, further contributed to record-breaking volumes.

Mortgage-backed securities exhibited a Y-o-Y rise 16.7% in ADV, reaching $188.3 billion, driven by strong To-Be-Announced volumes from hedge fund accounts and elevated roll activity. Swaps and swaptions with a maturity of one year or more experienced a remarkable Y-o-Y ADV surge of 178.4% to $580.8 billion, with total rates derivatives ADV up 132.6% Y-o-Y to $795.1 billion.

These record volumes were propelled by increased client activity, substantial Y-o-Y growth in compression activity, and strong performances in global inflation swaps, request-for-market protocol, and emerging market swaps.

Municipal Bonds Experience Slight Dip amid Lower Yields

In the credit market, fully electronic U.S. credit ADV increased 32.0% Y-o-Y to $6.1 billion, and European credit ADV rose 29.7% Y-o-Y to $2.3 billion. Notably, U.S. High Grade activity achieved record ADV, reflecting continued client adoption in Tradeweb protocols. Municipal bonds ADV, however, experienced a slight dip of 0.2% Y-o-Y to $475 million, attributed to somewhat muted retail municipal bond activity against a backdrop of lower yields.

Equities and money markets displayed positive trends, with U.S. ETF ADV increasing 4.5% Y-o-Y to reach $7.0 billion, European ETF ADV rising 10.0% Y-o-Y to $2.6 billion, and repurchase agreement ADV surging 35.2% Y-o-Y to $534.7 billion. Institutional client engagement in U.S. ETFs remained robust, while increased client adoption of Tradeweb's electronic trading solutions drove record global repo activity.