November 2024 ADV up 30.5% 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
November 2024 of $48.8 trillion (tn)1. Average daily volume (ADV)
for the month was $2.35tn, an increase of 30.5 percent (%)
year-over-year (YoY). Excluding the impact of the ICD acquisition,
which closed on August 1, 2024, total ADV for the month of November
was up 14.9% YoY.
In November 2024, Tradeweb records included:
- ADV in U.S. government bonds
- ADV in global repurchase agreements
November 2024 Highlights
RATES
- U.S. government bond ADV was up 50.3% YoY to $246.0 billion
(bn). European government bond ADV was up 18.7% YoY to $53.1bn.
- Record U.S. government bond activity was driven by record
institutional and wholesale volumes. European government bond
volumes were driven by an increased number of clients trading on
the platform and increased client adoption of our diverse trading
protocols, as well as heightened market volatility amid the U.S.
election and French political uncertainties.
- Mortgage ADV was up 22.5% YoY to $230.6bn.
- To-Be-Announced (TBA) activity remained healthy YoY despite
declining macro volatility. Volumes transacted on Tradeweb’s
specified pool platform continued to grow, driven by a record
number of clients executing on the platform.
- Swaps/swaptions ≥ 1-year ADV was down 26.2% YoY to $425.7bn and
total rates derivatives ADV was down 5.7% YoY to $748.9bn.
- Swaps/swaptions ≥ 1-year activity was down due to a 50% YoY
decline in compression activity, which carries a lower fee per
million. Quarter-to-date compression activity as a percentage of
swaps/swaptions ≥ 1-year is trending lower than 3Q24. Strong risk
trading volume in swaps/swaptions ≥ 1-year was driven by continued
volatility in global markets following the U.S. election results
and uncertainty surrounding central bank policy paths.
CREDIT
- Fully electronic U.S. credit ADV was up 20.8% YoY to $7.4bn and
European credit ADV was up 8.7% YoY to $2.5bn.
- U.S. credit volumes were driven by increased client adoption,
most notably in request-for-quote (RFQ), portfolio trading and
Tradeweb AllTrade®. Tradeweb captured 17.8% and 8.1% of fully
electronic U.S high grade and U.S. high yield TRACE, respectively,
as measured by Tradeweb. European credit volumes were driven by an
increase in portfolio trading activity, particularly toward the end
of the month, as well as continued adoption of Tradeweb’s Automated
Intelligent Execution tool (AiEX), which utilizes our unique dealer
selection tool, SNAP IOI.
- Municipal bonds ADV was down 13.8% YoY to $409 million (mm).
- Municipal bonds ADV decreased YoY due to lower levels of tax
loss harvesting, but outperformed the market, which declined
18.8%2.
- Credit derivatives ADV was up 37.2% YoY to $13.5bn.
- Increased hedge fund and systematic account activity, along
with heightened credit volatility, led to increased swap execution
facility (SEF) and multilateral trading facility (MTF) credit
default swaps activity.
EQUITIES
- U.S. ETF ADV was up 21.9% YoY to $8.6bn and European ETF ADV
was up 29.2% YoY to $3.3bn.
- ETF volumes across Tradeweb were strong across regions as
investors reallocated portfolios following the U.S. election
results. The number of equity clients utilizing electronic RFQ
continued to expand.
MONEY MARKETS
- Repo ADV was up 31.4% YoY to $702.5bn.
- Record global repo volumes were driven by increased client
activity across the platform. In Europe, repo volumes were driven
by clients positioning for year-end as well as healthy quality
liquid asset collateral in the market despite a tightening of repo
rates. In the U.S., volumes were driven by an unwind of the Fed’s
balance sheet, and current rates market activity continued to shift
more assets from the Fed’s reverse repo facility to money markets.
Retail money markets activity remained robust, as cash continued to
flow into the front end as the Fed cut rates in November 2024.
- Other Money Markets ADV was up YoY to $301.9bn.
- Other money markets volume growth was driven by the inclusion
of ICD volumes in November 2024.
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 50 products
to clients in the institutional, wholesale, retail and corporates
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 2,800 clients in more than 70
countries. On average, Tradeweb facilitated more than $1.9 trillion
in notional value traded per day over the past four fiscal
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 generally based on the monthly average
foreign exchange rate for the prior month. Volumes presented in
this release exclude volumes generated by (i) unbilled trial
agreements, (ii) products billed on an agreement basis where we do
not calculate notional value, and (iii) products that are not
rates, credit, equities or money markets products. 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 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 the 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 events or performance and future events, 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 future events, 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 events, 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 Tradeweb acquired Yieldbroker, r8fin and ICD on August 31,
2023, January 19, 2024 and August 1, 2024, respectively. Total
volume reported includes volumes from each acquired business
subsequent to the date of the applicable acquisition.
2 Based on data from MSRB
View source
version on businesswire.com: https://www.businesswire.com/news/home/20241204589565/en/
Media: Daniel Noonan, Tradeweb +1 646 767 4677
Daniel.Noonan@Tradeweb.com
Investor: 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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