Month of December 2023 ADV up 43.3%
YoY
Fourth Quarter 2023 ADV up 56.9% YoY
Full Year 2023 ADV up 27.6% YoY
Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets, today reported total trading volume for the month of
December 2023 of $28.9 trillion (tn). Average daily volume (ADV)
for the month was $1.46tn, an increase of 43.3 percent (%)
year-over-year (YoY). For the fourth quarter of 2023, total trading
volume was $104.4tn and ADV was $1.68tn, an increase of 56.9% YoY,
with preliminary average variable fees per million dollars of
volume traded of $2.54.1
Billy Hult, Tradeweb CEO, said: “Historic interest rate moves,
geopolitical uncertainty and ongoing market volatility helped drive
a 2023 resurgence in fixed income. Despite a challenging start to
the year, we reported a 27.6% YoY increase in average daily volume
for the full year and broke numerous volume records across rates,
credit, equities and money markets. The fourth quarter was
particularly strong in rates, and in December we reported a record
18.2% share of fully electronic U.S. High Grade TRACE for the
month.”
Record Highlights (See table
below for the full breakdown of volumes)
The month of December 2023 Tradeweb records included:
- Share of fully electronic U.S. High Grade TRACE
- ADV in U.S. ETFs
- ADV in equity convertibles/swaps/options
Fourth quarter 2023 Tradeweb records included:
- ADV in U.S. government bonds
- ADV in swaps/swaptions ≥ 1-year
- Share of and ADV in fully electronic U.S. High Grade TRACE
- ADV in equity convertibles/swaps/options
- ADV in global repurchase agreements
Full year 2023 Tradeweb records included:
- ADV in U.S. government bonds
- ADV in European government bonds
- ADV in swaps/swaptions ≥ 1-year
- Share of and ADV in fully electronic U.S. High Grade and U.S.
High Yield TRACE
- ADV in European credit
- ADV in Chinese bonds
- ADV in U.S. ETFs
- ADV in equity convertibles/swaps/options
- ADV in global repurchase agreements
The month of December 2023
Highlights
RATES
- U.S. government bond ADV was up 39.8% YoY to $159.5 billion
(bn). European government bond ADV was up 21.5% YoY to $33.4bn.
- U.S. government bond volumes were supported by growth across
all client sectors, increased adoption across a diverse set of
trading protocols on the institutional platform and sustained rates
market volatility. Higher interest rates continued to drive trading
in the retail market. European government bond volumes were
supported by sustained rates market volatility and strong hedge
fund activity.
- Mortgage ADV was up 34.1% YoY to $175.1bn.
- To-Be-Announced (TBA) platform volumes were supported by the
broader rates market rally as well as strong coupon swap and roll
trading activity. Robust client engagement in specified pool
trading reflected growing adoption of our list trading tool
YoY.
- Swaps/swaptions ≥ 1-year ADV was up 80.1% YoY to $336.5bn and
total rates derivatives ADV was up 62.0% YoY to $513.2bn.
- Strong volume in swaps/swaptions ≥ 1-year was driven by
increased activity in longer-duration swaps as well as an 85% YoY
increase in compression activity, which carries a lower fee per
million. 4Q23 compression activity was higher than 3Q23. Growing
volumes in the request-for-market (RFM) protocol and inflation
swaps contributed to strong activity for the month.
CREDIT
- Fully electronic U.S. credit ADV was up 56.4% YoY to $5.6bn and
European credit ADV was up 26.2% YoY to $1.6bn.
- Strong U.S. credit volumes were driven by increased client
adoption of Tradeweb protocols, most notably in request-for-quote
(RFQ), portfolio trading and Tradeweb AllTrade. Tradeweb captured a
record 18.2% share of fully electronic U.S. High Grade TRACE, and
6.5% share of fully electronic U.S. High Yield TRACE. European
credit volumes were supported by strong activity in portfolio
trading and Tradeweb Automated Intelligent Execution (AiEX), as
well as increased client adoption of our smart dealer selection
tools and Tradeweb AllTrade protocols. Overall, global portfolio
trading ADV was up 87% YoY.
- Municipal bonds ADV was down 5.3% YoY to $414 million (mm).
- While outpacing the -14% drop in the broader market2, municipal
trading volume slowed marginally, as retail investors digested
lower yields and institutional tax-loss harvesting activity
waned.
- Credit derivatives ADV was down 4.9% YoY to $7.5bn.
- Tight credit spreads and low market volatility led to slightly
lower overall swap execution facility (SEF) market activity.
EQUITIES
- U.S. ETF ADV was up 44.3% YoY to $10.9bn and European ETF ADV
was up 29.1% YoY to $3.2bn.
- Institutional platform volumes in both U.S. and Europe were
strong, with U.S. volumes up 12.8% YoY.
MONEY MARKETS
- Repurchase agreement ADV was up 34.2% YoY to $508.7bn.
- Increased client adoption of Tradeweb’s electronic trading
solutions drove global repo activity. Quantitative tightening,
heightened collateral supply and current rates market activity
shifted demand from the Federal Reserve’s reverse repo facility to
money markets. Retail money markets activity continued to be strong
as interest rates remained elevated.
YoY Volume for the Month of December
2023, Q4 2023 and Full Year (FY) 2023
December 2023
Q4 2023
FY 2023
Asset Class
Product
ADV (USD mm)
YoY
ADV (USD mm)
YoY
ADV (USD mm)
YoY
Rates
Cash
375,734
35.83%
397,987
25.08%
366,586
6.95%
U.S. Government Bonds
159,512
39.84%
162,335
28.65%
145,996
9.93%
European Government Bonds
33,447
21.55%
40,491
21.58%
40,250
14.21%
Mortgages
175,080
34.09%
185,883
20.82%
173,449
2.20%
Other Government Bonds
7,694
72.31%
9,278
90.92%
6,892
38.32%
Derivatives
513,233
62.04%
689,759
121.78%
529,757
54.92%
Swaps/Swaptions ≥ 1Y
336,467
80.12%
462,960
129.46%
336,928
61.17%
Swaps/Swaptions < 1Y
173,761
35.39%
223,305
107.54%
190,628
45.33%
Futures
3,004
89.72%
3,494
110.94%
2,201
27.41%
Total
888,967
49.82%
1,087,746
72.88%
896,343
30.91%
Credit
Cash
12,500
52.84%
14,292
41.22%
12,376
22.61%
U.S. High Grade - Fully Electronic
5,059
63.51%
5,133
41.26%
4,362
31.55%
U.S. High Grade - Electronically
Processed
2,236
5.82%
2,500
-3.67%
2,666
1.03%
U.S. High Yield - Fully Electronic
514
9.45%
642
10.48%
623
1.08%
U.S. High Yield - Electronically
Processed
231
22.98%
300
4.42%
302
-13.89%
European Credit
1,637
26.17%
2,044
28.48%
1,979
15.73%
Municipal Bonds
414
-5.26%
455
-0.84%
352
-3.18%
Chinese Bonds
2,189
320.08%
2,984
245.75%
1,944
96.41%
Other Credit Bonds
220
274.22%
234
111.49%
148
36.19%
Derivatives
7,524
-4.94%
9,864
-13.80%
14,030
-20.36%
Swaps
7,524
-4.94%
9,864
-13.80%
14,030
-20.36%
Total
20,024
24.42%
24,155
12.02%
26,407
-4.71%
Equities
Cash
14,071
40.55%
11,054
15.20%
10,233
-0.32%
U.S. ETFs
10,918
44.25%
8,308
13.58%
7,731
3.68%
Europe ETFs
3,153
29.09%
2,746
20.38%
2,502
-10.94%
Derivatives
16,805
119.46%
12,481
63.43%
10,110
34.45%
Convertibles/Swaps/Options
10,853
160.86%
8,503
94.28%
6,799
76.24%
Futures
5,951
70.21%
3,979
22.03%
3,310
-9.61%
Total
30,875
74.75%
23,535
36.57%
20,343
14.38%
Money Markets
Cash
524,836
32.83%
541,403
35.05%
497,546
24.63%
Repurchase Agreements (Repo)
508,734
34.22%
524,267
36.86%
480,384
26.07%
Other Money Markets
16,102
0.05%
17,136
-3.81%
17,163
-5.46%
Total
524,836
32.83%
541,403
35.05%
497,546
24.63%
ADV (USD mm)
YoY
ADV (USD mm)
YoY
ADV (USD mm)
YoY
Total
1,464,703
43.28%
1,676,839
56.9%
1,440,639
27.56%
*Bolded numbers indicate a record for the Tradeweb platform
Please refer to the report posted to
https://www.tradeweb.com/newsroom/monthly-activity-reports/ for
complete information and data related to our historical monthly,
quarterly and yearly ADV and total trading volume across asset
classes.
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator
of electronic marketplaces for rates, credit, equities and money
markets. Founded in 1996, Tradeweb provides access to markets, data
and analytics, electronic trading, straight-through-processing and
reporting for more than 40 products to clients in the
institutional, wholesale and retail markets. Advanced technologies
developed by Tradeweb enhance price discovery, order execution and
trade workflows while allowing for greater scale and helping to
reduce risks in client trading operations. Tradeweb serves more
than 2,500 clients in more than 65 countries. On average, Tradeweb
facilitated more than $1.4 trillion in notional value traded per
day over the past four quarters. For more information, please go to
www.tradeweb.com.
Basis of Presentation
All reported amounts are presented in U.S. dollars, unless
otherwise indicated. In determining the reported U.S. dollar
amounts for non-U.S. dollar denominated securities, the non-U.S.
dollar amount for a particular month is translated into U.S.
dollars based on the monthly average foreign exchange rate for the
prior month. Please see the footnotes on page 3 of the full report
for information regarding how we calculate market share amounts
presented in this release.
Market and Industry Data
This press release and the complete report include estimates
regarding market and industry data that we prepared based on our
management’s knowledge and experience in the markets in which we
operate, together with information obtained from various sources,
including publicly available information, industry reports and
publications, surveys, our clients, trade and business
organizations and other contacts in the markets in which we
operate. In presenting this information, we have made certain
assumptions that we believe to be reasonable based on such data and
other similar sources and on our knowledge of, and our experience
to date in, the markets in which we operate. While such information
is believed to be reliable for the purposes used herein, no
representations are made as to the accuracy or completeness thereof
and we take no responsibility for such information.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of the federal securities laws. Statements related to,
among other things, our outlook and future performance, the
industry and markets in which we operate, our expectations,
beliefs, plans, strategies, objectives, prospects and assumptions
and future events are forward-looking statements.
We have based these forward-looking statements on our current
expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed under the heading “Risk Factors”
in documents of Tradeweb Markets Inc. on file with or furnished to
the SEC, may cause our actual results, performance or achievements
to differ materially from those expressed or implied by these
forward-looking statements. In particular, preliminary average
variable fees per million dollars of volume traded are subject to
the completion of management’s final review and our other financial
closing procedures and therefore are subject to change. Given these
risks and uncertainties, you are cautioned not to place undue
reliance on such forward-looking statements. The forward-looking
statements contained in this release are not guarantees of future
performance and our actual results of operations, financial
condition or liquidity, and the development of the industry and
markets in which we operate, may differ materially from the
forward-looking statements contained in this release. In addition,
even if our results of operations, financial condition or
liquidity, and events in the industry and markets in which we
operate, are consistent with the forward-looking statements
contained in this release, they may not be predictive of results or
developments in future periods.
Any forward-looking statement that we make in this release
speaks only as of the date of such statement. Except as required by
law, we do not undertake any obligation to update or revise, or to
publicly announce any update or revision to, any of the
forward-looking statements, whether as a result of new information,
future events or otherwise, after the date of this release.
1 See pg. 7 of the report available at
https://www.tradeweb.com/newsroom/monthly-activity-reports/ for the
detailed breakdown of average variable fees per million dollars of
volume traded for each underlying asset class.
2 Based on data from MSRB
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240104878412/en/
Media contact: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor contacts: Ashley Serrao, Tradeweb +1 646 430
6027 Ashley.Serrao@Tradeweb.com
Sameer Murukutla, Tradeweb +1 646 767 4864
Sameer.Murukutla@Tradeweb.com
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