Tradeweb Markets posted a record-breaking performance in August, with the total trading volume reaching $50.9 trillion. According to the marketplace, this achievement was largely driven by increased demand for US government bonds and global repurchase agreements.

The platform registered an average daily volume (ADV) of $2.21 trillion, marking a 53.9% increase compared to last year. Tradeweb’s US government bond trading activity reached an ADV of $228.2 billion in August alone, a 59.9% year-over-year (YoY) growth.

US Government Bonds and Repo Activity

European bonds also contributed to the surge with an 11.8% rise in ADV, driven by increased investor interest in UK Gilts. A combination of favorable market conditions and increased institutional adoption of new protocols reportedly fueled this substantial growth. Tradeweb's Global repurchase agreements (repo) also contributed to the expansion, recording a 30.8% YoY increase in ADV to $643.5 billion.

Retail money market activity remained resilient, bolstered by expectations of future rate cuts. August saw a sharp rise in mortgage trading, with ADV climbing 32.3% YoY to $230.7 billion. Specified pool trading and roll activity contributed to this momentum as investors engaged in more dynamic mortgage-backed securities trading.

Credit markets also exhibited growth, particularly in credit derivatives, which surged 135.6% YoY to $18.6 billion in ADV. Hedge funds and systematic trading strategies were key drivers behind this jump, alongside heightened 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 in global credit markets. Meanwhile, municipal bond trading recorded a 13.4% increase in ADV to $392 million, benefiting from a wave of record issuance throughout the month.

While rates and credit markets led the charge, equities trading wasn’t left behind. US exchange-traded funds (ETFs) posted a 6.8% YoY increase in ADV to $7.2 billion, while European ETFs saw a more dramatic rise of 43.4% to $2.7 billion. The increased use of ETFs in institutional portfolios reflected investors’ efforts to reposition assets in light of ongoing market uncertainties.

Rates Markets

Rates derivatives continued to fuel Tradeweb’s growth, with swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term and swaptions (≥1 year) posting a 5.4% increase in ADV to $402.3 billion. The broader rates derivatives segment also grew by 35.7% YoY, with total ADV reaching $727.4 billion. Global political volatility contributed to this uptick, with central bank activity creating more opportunities for risk transfers and hedging strategies.

Despite the high volumes, the platform saw a decline in compression activity, down 22% YoY, as clients shifted toward other trading protocols amid changing market conditions.