The fixed income, derivatives, and ETF electronic trading platform, Tradeweb Markets has released its financial results for the second quarter of 2023, disclosing an increase in profit and revenue. The positive performance was driven by growth in its government securities and US and European credit segments.

During the period, Tradeweb's revenue increased 5% year-over-year to USD $310 million. The firm's revenue from the money markets segment increased the most as it reached 30% compared to the same period last year. The revenue from the fixed income, credit, and market data segments increased 6%, 0.1%, and 8%, respectively. However, Tradeweb's revenue from equities dropped 3%.

Tradeweb Declares Dividend

Besides that, the New York-based company reported an increase of 25% in net income to USD $101 million in the quarter. Thus the company declared a cash dividend of USD $0.09 per share and bought back shares worth USD $7 million during the period. Additionally, its operating expenses increased 2% to USD $194 million.

Additionally, the Nasdaq-listed trading platform reported an increase of 10% year-over-year in the average daily volume (ADV) to USD $1.3 trillion during the quarter. However, the figures represent a decline compared to the USD $1.4 trillion reported in the first quarter, which was boosted by an increase in revenue from the US government bonds and retail money markets.

Improving Market Conditions

Commenting about the quarterly report, Billy Hult, the CEO of Tradeweb, said: "Market conditions steadily improved during the second quarter, with our business performance well against a backdrop of mixed markets. We produced a double-digit growth across the global government bonds."

During the second quarter, Tradeweb agreed to acquire Yieldbroker, a trading platform offering Australian and New Zealand government bonds and interest rates derivatives. The deal, worth AUD $125 million, is expected to be concluded at the end of the year.

Tradeweb collaborated with Bloomberg and MarketAxess to establish an independent company to participate in public procurement procedures in the EU during the period. Additionally, the company partnered with FTSE Russell to launch benchmark closing prices for European government bonds.