Tradeweb released its Monthly Activity Report, which captures trading activity on the platforms in fixed income, derivatives and ETF trading. The trading-platform operator reported average daily volumes in August were up 38.0% year over year.
The following is a break-out of the most noteworthy trends from August:
- Derivatives continue to grow: ADV in rates derivatives rose 199.0% year over year (YoY) due to increased market share of SEF interest rates swap volumes and growth in MTF volumes; ADV in credit derivatives rose 34.6% YoY despite a decline in overall SEF market volumes of 10.0 over the same period; ADV in equity derivatives rose 169.4% YoY attributable to RFQ trading in European equity options.
- Government bond volumes strong: U.S. Treasuries ADV increased 27.2% YoY while European government bonds increased 39.6% over the same period.
- U.S. corporate bonds up despite secular headwind: U.S. high-grade ADV rose 42.9% YoY and exceeded 10.0% of TRACE for the first time with fully-electronic trading accounting for 3.6% of the total; U.S. high-yield ADV rose 64.7% YoY; In comparison TRACE volumes of high-grade declined 5.5% YoY and high-yield declined 6.6%; In Europe, ADV in corporate bonds rose 21.7% YoY.
- Retail fixed income record: ADV on Tradeweb Direct set a new five-year high in August due to rises in retail trading activity in municipal bonds and corporate bonds on the platform.
- Repos on a roll: The growth of trading in repurchase agreements continued in August as ADV increased 39.4% YoY.
SOURCE: Tradeweb
