Tradeweb Markets, the online fixed-income trading platform, today announced that average daily volumes for U.S. repurchase agreements (repo) on its Dealerweb marketplace were $177 billion in May 2017, with over $95 billion traded electronically.
Across a yearly interval, there was an increase of 121 percent as macroeconomic uncertainty and interest-rate volatility heightened activity across this asset class. Furthermore, Dealerweb’s market share of U.S. inter-dealer trading has grown to 18 percent since it launched its electronic central limit order book one year ago.
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Overall U.S. repo volumes reached $3.8 trillion in May, which more than doubled year-on-year. Out of this figure, more than $2.1 trillion was traded on the electronic platform while average daily trading volume for voice brokered trades grew to more than $80 billion during the same period.
The remarkable growth of Tradeweb’s platform continues to demonstrate that a streamlined workflow can put market makers in competition to achieve better pricing and access to repo instruments. Tradeweb says that growing customer acceptance and rising market share boosted its U.S. Treasury marketplace volumes to a combined average daily volume of more than $35 billion.
In addition, Dealerweb’s success suggests that the push to compete with interdealer brokers can be rolled out across other products, such as the wholesale U.S. treasury market, in which ICAP has a 60 percent market share.
Billy Hult, President of Tradeweb Markets, commented: “The Dealerweb approach to offering both electronic markets with voice brokerage continues to prove valuable to market participants, and our growth in U.S. repo is an example of how we can help improve efficiency and access to liquidity for our clients. We believe we can provide even greater value to the marketplace as more clients leverage electronic trading in repo, and are increasingly optimistic about our growth.”