Tradeweb Markets, the online fixed-income trading platform, has posted solid figures for average daily trading volumes in October, largely due to higher activity in the US, and European government bond markets, along with a surge in ETF trading.
Tradeweb’s trading volumes hit $910.8 billion per day last month, up 5 percent from $870.5 billion in aggregate for the month of September 2020. Further, this figure was higher by 28.8 percent year-over-year from its counterpart in October 2019. It marks Tradeweb’s second-highest month ever.
Additionally, the electronic trading platform provider said that in October 2020, it topped its previous reading for monthly volumes, coming in at $19.4 trillion, as activity increased across nearly all products on the platform. This figure represents an increase of 16.4 percent month over month from $18.5 trillion in September 2020.
Trading volumes of US and European government bonds rose on a monthly basis to $83.9 billion and $27.3 respectively amid October’s policy changes. Higher global government bond issuances, the U.S. election and rising volatility also contributed to robust secondary trading.
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Moreover, trading activity in U.S Treasuries continued apace, with increased activity executed via firm streams by institutional and wholesale clients.
Solid IPO and a Still-Strong Demand
Founded 23 years ago, Tradeweb builds and runs electronics markets for trading government bonds, derivatives, ETFs, and other financial instruments over the counter.
Earlier last year, the company raised $1.1 billion in its initial public offering, which was the second-largest IPO in the US markets for 2020.
Tradeweb had a busy year so far after making a major push in US share derivatives markets with the launch of its options platform for institutional customer-to-dealer trading. The platform leverages Tradeweb’s institutional network of global dealers and buy-side customers.
Commenting on October trading volumes, Tradeweb CEO, Lee Olesky said: “Tradeweb’s strategic focus on growing our credit trading platform continued to show stellar results in the U.S. and Europe, including both higher trading volumes and stronger adoption across a wide array of trading tools and protocols. Our solid performance also extended beyond credit as U.S. Treasuries, European Govies and Mortgages benefitted from higher issuance and Repos saw a boost thanks to new dealers and participants trading on our platform.”