Tradeweb's Average Daily Volume Hits New Highs at $1.57 trillion in September 2023

by Damian Chmiel
  • Tradeweb reports a total trading volume of $31.8 trillion for September 2023.
  • The firm also saw a YoY increase of 30.8% in average daily volume, reaching record-breaking levels.
Tradeweb
Billy Hult, the CEO of Tradeweb
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September proved favorable for Tradeweb Markets Inc. in terms of trading volumes. The major player in the electronic marketplaces across various asset classes has announced its trading metrics for September 2023. The company reported a total trading volume of $31.8 trillion and a record average daily volume (ADV) of $1.57 trillion. These figures represent a significant year-over-year (YoY) growth, with ADV for the third quarter showing a robust increase.

A Closer Look at the Tradeweb’s Numbers

In September 2023, Tradeweb's average daily volume in global repurchase agreements and other asset classes exhibited strong growth. Despite August having a higher total trading volume of $33 trillion, September's fewer trading days didn't hinder its performance. The ADV for last month reached a record-breaking $1.57 trillion, representing an increase of 30.8% compared to the same period last year.

For the third quarter, the company reported a total trading volume of $90.4 trillion and a record ADV of $1.42 trillion. This represents a YoY increase of 29.6%. The company also noted preliminary average variable fees per million dollars of volume traded at $2.51.

Volumes in Specific Markets

In the rates market, US government bond ADV rose 12.4% year-over-year to $145.3 billion, while European government bond ADV increased 1.9% to $42.4 billion. The credit market also saw growth, as fully electronic U.S. credit ADV escalated 14.3% to $4.9 billion, and European credit ADV boosted 22.6% to $2.1 billion.

While the equities market showed a slight decline, with US ETF ADV declining 2.9% to $7.4 billion, the money markets segment experienced a surge. Repurchase agreement ADV surged 38.9% to $529.6 billion, which was driven by client adoption of Tradeweb's electronic trading solutions.

Market

Total Volume (Trillions)

ADV (Billions)

Rates

$15.7

$785

Credit

$12.5

$625

Equities

$2.5

$125

Money Markets

$1.1

$55

Total

$31.8

$1,590

Source: Tradeweb

Despite the backdrop of increasing interest rates and market volatility, trading activity remained high across all asset classes. Client engagement in specified pool trading and other sectors continued to drive strong year-over-year growth.

Tradeweb Successful Acquisition and Higher Q2 Profits

Three months after initially announcing an A$125 million all-cash transaction, Tradeweb Markets Inc. confirmed in late August that it has successfully finalized its acquisition of Yieldbroker, an Australian trading platform focused on government bonds and interest rate derivatives. This strategic acquisition allows Tradeweb's clients to tap into the debt market in the Asia-Pacific region.

Initial news of Tradeweb's intent to acquire Yieldbroker for A$125 million first surfaced in April, but there were no assurances that the deal would be completed. The transaction was contingent on the approval of Yieldbroker's shareholders, final definitive documentation, and regulatory scrutiny.

This acquisition coincides with robust quarterly results for Tradeweb. In the second quarter of 2023, the company witnessed a year-over-year increase of 5% in revenue, reaching $310 million. Notably, the firm's revenue from the money markets segment experienced the most significant growth, advancing 30% compared to the same period last year.

September proved favorable for Tradeweb Markets Inc. in terms of trading volumes. The major player in the electronic marketplaces across various asset classes has announced its trading metrics for September 2023. The company reported a total trading volume of $31.8 trillion and a record average daily volume (ADV) of $1.57 trillion. These figures represent a significant year-over-year (YoY) growth, with ADV for the third quarter showing a robust increase.

A Closer Look at the Tradeweb’s Numbers

In September 2023, Tradeweb's average daily volume in global repurchase agreements and other asset classes exhibited strong growth. Despite August having a higher total trading volume of $33 trillion, September's fewer trading days didn't hinder its performance. The ADV for last month reached a record-breaking $1.57 trillion, representing an increase of 30.8% compared to the same period last year.

For the third quarter, the company reported a total trading volume of $90.4 trillion and a record ADV of $1.42 trillion. This represents a YoY increase of 29.6%. The company also noted preliminary average variable fees per million dollars of volume traded at $2.51.

Volumes in Specific Markets

In the rates market, US government bond ADV rose 12.4% year-over-year to $145.3 billion, while European government bond ADV increased 1.9% to $42.4 billion. The credit market also saw growth, as fully electronic U.S. credit ADV escalated 14.3% to $4.9 billion, and European credit ADV boosted 22.6% to $2.1 billion.

While the equities market showed a slight decline, with US ETF ADV declining 2.9% to $7.4 billion, the money markets segment experienced a surge. Repurchase agreement ADV surged 38.9% to $529.6 billion, which was driven by client adoption of Tradeweb's electronic trading solutions.

Market

Total Volume (Trillions)

ADV (Billions)

Rates

$15.7

$785

Credit

$12.5

$625

Equities

$2.5

$125

Money Markets

$1.1

$55

Total

$31.8

$1,590

Source: Tradeweb

Despite the backdrop of increasing interest rates and market volatility, trading activity remained high across all asset classes. Client engagement in specified pool trading and other sectors continued to drive strong year-over-year growth.

Tradeweb Successful Acquisition and Higher Q2 Profits

Three months after initially announcing an A$125 million all-cash transaction, Tradeweb Markets Inc. confirmed in late August that it has successfully finalized its acquisition of Yieldbroker, an Australian trading platform focused on government bonds and interest rate derivatives. This strategic acquisition allows Tradeweb's clients to tap into the debt market in the Asia-Pacific region.

Initial news of Tradeweb's intent to acquire Yieldbroker for A$125 million first surfaced in April, but there were no assurances that the deal would be completed. The transaction was contingent on the approval of Yieldbroker's shareholders, final definitive documentation, and regulatory scrutiny.

This acquisition coincides with robust quarterly results for Tradeweb. In the second quarter of 2023, the company witnessed a year-over-year increase of 5% in revenue, reaching $310 million. Notably, the firm's revenue from the money markets segment experienced the most significant growth, advancing 30% compared to the same period last year.

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