Tradeweb Continues to see Strong Volumes in July

Global trading activity continues to outpace 2017, with July trading volumes on Tradeweb Markets reaching $518bn ADV, a 41% increase from July 2017. Volumes are down a bit from June’s record of $590bn ADV, as the summer trading begins to take hold. The seasonal slowdown was further impacted by the Independence Day holiday in the U.S. falling on a Wednesday. As evidence of the estimated impact, ADV of U.S. Treasuries rose 15.6% and U.S. High-Grade Credit increased 46.6% on Tradeweb platforms in the second half of July.

Derivatives trading continues to see significant growth in 2018. All three derivative product lines (rates, credit and equities) have seen volumes more than double in 2017 year-to-date. Derivatives growth has not been limited to vanilla products as both swaption and single name CDS volumes have grown several fold since last July. Moreover, zero-coupon inflation swaps and the U.S. equity options platform (both launched in the past year), saw record volumes in July.

Fixed income bond trading continues to remain strong, with U.S. Treasury trading exceeding $65bn per day, up 34% vs. July 2017. There was similar year-over-year growth in other cash products, including European Government Bonds (29%), U.S. High-Grade (32%), U.S. High-Yield (48%) and European Corporate Bonds (23%). Chinese bond activity is up over 275%, since the launch of Bond Connect in July 2017.

The success of the bilateral dealer-to-client repo platform continues to drive growth in the money markets business. Total repo activity has exceeded $20tn year-to-date, on track for its best year since at least 2010. After growing 50% in 2017, volumes are up another 36% year-to-date.

In equity markets, the electronic RFQ protocol continues to see good volumes despite the decline in volatility. U.S. ETF volumes were up 29% during the month vs. July 2017. European ETFs were up over 36% compared to July 2017.

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