September
proved favorable for Tradeweb Markets Inc. in terms of trading volumes. The
major player in the electronic marketplaces across various asset classes has
announced its trading metrics for September 2023. The company reported a total
trading volume of $31.8 trillion and a record average daily volume (ADV) of
$1.57 trillion. These figures represent a significant year-over-year (YoY) growth,
with ADV for the third quarter showing a robust increase.
In
September 2023, Tradeweb’s average daily volume in global repurchase
agreements and other asset classes exhibited strong growth. Despite August
having a higher total trading volume of $33 trillion, September’s fewer trading
days didn’t hinder its performance. The ADV for last month reached a
record-breaking $1.57 trillion, representing an increase of 30.8% compared to the
same period last year.
For the
third quarter, the company reported a total trading volume of $90.4 trillion
and a record ADV of $1.42 trillion. This represents a YoY increase of 29.6%. The
company also noted preliminary average variable fees per million dollars of
volume traded at $2.51.
Volumes in Specific
Markets
In the
rates market, US government bond ADV rose 12.4% year-over-year to $145.3
billion, while European government bond ADV increased 1.9% to $42.4 billion.
The credit market also saw growth, as fully electronic U.S. credit ADV escalated 14.3% to $4.9 billion, and European credit ADV boosted 22.6% to $2.1 billion.
While the
equities market showed a slight decline, with US ETF ADV declining 2.9% to $7.4
billion, the money markets segment experienced a surge. Repurchase agreement
ADV surged 38.9% to $529.6 billion, which was driven by client adoption of
Tradeweb’s electronic trading solutions.
|
Market |
Total |
ADV |
|
Rates |
$15.7 |
$785 |
|
Credit |
$12.5 |
$625 |
|
Equities |
$2.5 |
$125 |
|
Money Markets |
$1.1 |
$55 |
|
Total |
$31.8 |
$1,590 |
Source:
Tradeweb
Despite the
backdrop of increasing interest rates and market volatility, trading activity
remained high across all asset classes. Client engagement in specified pool
trading and other sectors continued to drive strong year-over-year growth.
Tradeweb Successful Acquisition
and Higher Q2 Profits
Three
months after initially announcing an A$125 million all-cash transaction,
Tradeweb Markets Inc. confirmed in late August that it has successfully
finalized its acquisition of Yieldbroker, an Australian trading platform
focused on government bonds and interest rate derivatives. This strategic
acquisition allows Tradeweb’s clients to tap into the debt market in the
Asia-Pacific region.
Initial
news of Tradeweb’s intent to acquire Yieldbroker for A$125 million first
surfaced in April, but there were no assurances that the deal would be
completed. The transaction was contingent on the approval of Yieldbroker’s shareholders,
final definitive documentation, and regulatory scrutiny.
This
acquisition coincides with robust quarterly results for Tradeweb. In the second
quarter of 2023, the company witnessed a year-over-year increase of 5% in revenue,
reaching $310 million. Notably, the firm’s revenue from the money markets
segment experienced the most significant growth, advancing 30% compared to the
same period last year.
September
proved favorable for Tradeweb Markets Inc. in terms of trading volumes. The
major player in the electronic marketplaces across various asset classes has
announced its trading metrics for September 2023. The company reported a total
trading volume of $31.8 trillion and a record average daily volume (ADV) of
$1.57 trillion. These figures represent a significant year-over-year (YoY) growth,
with ADV for the third quarter showing a robust increase.
In
September 2023, Tradeweb’s average daily volume in global repurchase
agreements and other asset classes exhibited strong growth. Despite August
having a higher total trading volume of $33 trillion, September’s fewer trading
days didn’t hinder its performance. The ADV for last month reached a
record-breaking $1.57 trillion, representing an increase of 30.8% compared to the
same period last year.
For the
third quarter, the company reported a total trading volume of $90.4 trillion
and a record ADV of $1.42 trillion. This represents a YoY increase of 29.6%. The
company also noted preliminary average variable fees per million dollars of
volume traded at $2.51.
Volumes in Specific
Markets
In the
rates market, US government bond ADV rose 12.4% year-over-year to $145.3
billion, while European government bond ADV increased 1.9% to $42.4 billion.
The credit market also saw growth, as fully electronic U.S. credit ADV escalated 14.3% to $4.9 billion, and European credit ADV boosted 22.6% to $2.1 billion.
While the
equities market showed a slight decline, with US ETF ADV declining 2.9% to $7.4
billion, the money markets segment experienced a surge. Repurchase agreement
ADV surged 38.9% to $529.6 billion, which was driven by client adoption of
Tradeweb’s electronic trading solutions.
|
Market |
Total |
ADV |
|
Rates |
$15.7 |
$785 |
|
Credit |
$12.5 |
$625 |
|
Equities |
$2.5 |
$125 |
|
Money Markets |
$1.1 |
$55 |
|
Total |
$31.8 |
$1,590 |
Source:
Tradeweb
Despite the
backdrop of increasing interest rates and market volatility, trading activity
remained high across all asset classes. Client engagement in specified pool
trading and other sectors continued to drive strong year-over-year growth.
Tradeweb Successful Acquisition
and Higher Q2 Profits
Three
months after initially announcing an A$125 million all-cash transaction,
Tradeweb Markets Inc. confirmed in late August that it has successfully
finalized its acquisition of Yieldbroker, an Australian trading platform
focused on government bonds and interest rate derivatives. This strategic
acquisition allows Tradeweb’s clients to tap into the debt market in the
Asia-Pacific region.
Initial
news of Tradeweb’s intent to acquire Yieldbroker for A$125 million first
surfaced in April, but there were no assurances that the deal would be
completed. The transaction was contingent on the approval of Yieldbroker’s shareholders,
final definitive documentation, and regulatory scrutiny.
This
acquisition coincides with robust quarterly results for Tradeweb. In the second
quarter of 2023, the company witnessed a year-over-year increase of 5% in revenue,
reaching $310 million. Notably, the firm’s revenue from the money markets
segment experienced the most significant growth, advancing 30% compared to the
same period last year.
