Tradeweb Markets’ average daily volume rebounded 33.7% in September to $3.74 trillion, with rates derivatives generating most of the increase.
ADV was also 29% higher than a year earlier, while total monthly trading volume reached $81.6 trillion. The recovery followed a weaker August, when overall ADV declined 4.5% from the previous month and activity in rates derivatives fell by almost 10%.
Rates derivatives accounted for approximately $734.6 billion, or 78%, of the $941.9 billion monthly increase in total ADV, according to a Finance Magnates calculation based on Tradeweb’s historical data.
Rates Derivatives Lead the Rebound
Rates derivatives ADV reached $1.80 trillion, increasing 69.1% from August and 62.7% year over year. Average daily trading in swaps and swaptions with maturities of at least one year rose 67% over the month to $924 billion.
Instruments with maturities below one year increased 74% to $861.2 billion.
Tradeweb attributed the annual growth in longer-dated instruments to stronger risk trading amid changes in central bank policy and geopolitical tensions.
Compression activity, which allows market participants to reduce or replace offsetting derivatives positions, increased 54% from a year earlier.
The wider rates category, which also includes government bonds and mortgages, generated ADV of $2.47 trillion in September, compared with $1.62 trillion in August.
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European Government Bonds Set a Record
Government bonds and electronic credit accounted for several of September’s strongest results, although performance differed across products. European government bonds and two US credit measures reached record ADV, while mortgage activity declined from a year earlier.
| Market | September ADV | Month over month | Year over year | Result |
|---|---|---|---|---|
| US government bonds | $309.8bn | +9.7% | +29.0% | |
| European government bonds | $81.4bn | +50.3% | +29.2% | Record |
| Mortgages | $269.0bn | +27.7% | −7.8% | |
| Total fully electronic US credit | $11.1bn | +24.7% | +29.7% | Record |
| European credit | $3.17bn | +61.0% | +10.8% |
Tradeweb attributed the European government bond record to institutional clients using a broader range of trading protocols. It also reported record monthly use of AiEX, its rules-based automated execution system, in European credit.
The company also reported record monthly use of AiEX, its rules-based automated execution system. For the third quarter, Tradeweb recorded total volume of $210.3 trillion and ADV of $3.2 trillion, an increase of 22.4% from the corresponding period last year. September therefore ended the quarter well above its average daily pace.
