The total trading volume on Tradeweb Markets, a NASDAQ-listed operator of electronic marketplaces for rates, credit, equities and money markets, rose by 6% from $22 trillion in July to $23.4 trillion in August 2022.
In July, the total trading volume of the electronic market operator dropped 16% from June's $26.1 trillion.
When compared to the total trading volume generated in June, Tradeweb’s volume declined 10% in August.
Furthermore, Finance Magnates’ analysis of Tradeweb's trading volume statistics for August 2022 released on Wednesday shows that the operator's average daily volume (ADV) slumped 6.4% to $1.02 trillion in August, falling from July’s $1.09 trillion.
However, on a year-over-year basis, the ADV generated 13% growth in average volume for August.
Meanwhile, at the end of the second quarter of 2022, Tradeweb reported a total trading volume of $72.6 trillion.
“Tradeweb's diversified offering across products, geographies and client sectors supported double-digit growth, amidst a complex macroeconomic background driven by evolving central bank policy, sustained elevated volatility , economic concerns and a stronger dollar,” Tradeweb explained.
Market Performance in August
Tradeweb, which saw 13.9% growth in its revenue during the first quarter of 2022, recorded a month-on-month (MoM) decline across its rates, credit, equities and money markets in August but mostly saw an increase year-over-year (YoY).
In the rates market, while the US government bond ADV rose 6% to reach $124.2 billion in August, the European government bond slumped -12% to $27.5 billion ADV.
However, On a yearly basis, the US government bond ADV grew 0.7% while the European government ADV expanded 22.7%.
Meanwhile, the mortgage ADV under the rates market rose 7.9% year-on-year (YoY) to $157.1 billion.
“Risk-off sentiment and declining issuance weighed on trading activity and sector performance,” Tradeweb said.
In the credit market, while fully electronic US credit ADV dropped -3% MoM to $3.5 billion in August from $3.6 billion in July, European credit ADV slumped -29% to $1 billion.
However, when calculated on a year-on-year basis, the average volumes surged 14.8% for fully electronic US credit and dropped 9.6% for European credit.
In the equities market, the US exchange-traded fund (ETF) ADV declined -13% MoM to $5.3 billion from $6.1 billion recorded in July. On the contrary, the US ETF ADV climbed 20.2% year-on-year.
Furthermore, the European EFT ADV dropped -27% from July’s $3 billion to $2.2 billion in August. However, on a YoY basis, it increased 36.4%.
In the money markets, the repurchase agreement ADV decreased -7% from $397.3 billion in July to $369.6 billion in August. However, on a yearly basis, this represents a 16.7% increase.
“Increased client adoption of Tradeweb’s electronic trading solutions drove Global Repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility continued to weigh on the overall repo market,” Tradeweb explained.
“Retail money markets activity continued to strengthen as the rates environment improved,” the electronic marketplace operator added.
