Tradeweb Reports Record Volumes on Post-Election Volatility

Average daily volume across all asset classes was $958.7 billion, a 37.2 percent increase for the same month a year

Fixed-income trading platform, Tradeweb Markets on Thursday reported solid figures for trading volumes in November 2020 as market volatility driven by Covid-19 developments bolstered activity during the normally sluggish year-end months.

The average daily volume across all asset classes was $958.7 billion, a 37.2 percent increase for the same month a year ago. Further, this figure was higher by five percent month-over-month from $910.8 billion per day in October. Additionally, November 2020 marks Tradeweb’s second-highest month ever.

However, in terms of total trading volume, the electronic trading platform provider in November 2020 failed to top its previous reading for monthly volumes, coming in at $18.7 trillion, which was largely due to lesser trading days than in October.

Trading volumes of US and European government bonds rose on a yearly basis to $100.1 billion and $27.0 billion respectively. Daily trading activity in U.S Treasuries exceeded the $100 billion mark for the first time as the U.S. election and rising volatility contributed to robust secondary trading.

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The gains at Tradeweb, which has a majority-owned by Refinitiv, were also partly driven by its interest rates business. This was up 25.6 percent year over year to $224.5 billion. Trading in swaps reached its highest levels since March 2020, with more than half the duration traded on SEF completed via Tradeweb Markets. Trading on risk-free rates and trading via request-for-market (RFM) list also continued to see solid growth.

Moreover, the trading activity in U.S Treasuries continued apace, with increased activity executed via firm streams by institutional and wholesale clients.

Trading desks are typically quieter in late November as market participants go on holiday. But, this year volatility metrics recorded their biggest leaps in decades on continuing uncertainty over which candidate will win the US presidential race.

Commenting on November trading volumes, Tradeweb CEO, Lee Olesky said: “In November, Tradeweb experienced strong double-digit growth in ADV across rates, credit, money markets and ETFs. This furthered the broad-based growth we reported last month and continued to reflect both higher underlying volumes and increased adoption of our platforms and solutions. Our share in U.S. credit trading has climbed steadily throughout 2020, and in November our monthly U.S. High Grade TRACE share topped 20% for the first time —nearly double where we were just two years ago.”

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