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Tradeweb's Full-Year ADV Grows 9.9% to $1.1T in 2022

by Solomon Oladipupo
  • However, December 2022 ADV declined -10% to $1.02 trillion.
  • Tradeweb posted growth across all asset classes except rates in Q4 2022.
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Tradeweb Markets, a NASDAQ-listed operator of electronic marketplaces for rates, credit, equities and money markets, generated a full-year ADV (average daily volume) of $1.1 trillion in 2022. This represents a 9.87% year-over-year (YoY) growth, the company said in its latest trading volume statistics report released on Thursday.

However, details shared by the operator showed that its total trading volume and ADV for December 2022 declined month-over-month (MoM) by -9% and -10% to $21.2 trillion and $1.02 trillion, respectively. The total volumes in December fell from the $23.2 trillion recorded in the prior month. On the contrary, the December ADV went up by 11.6% YoY. Furthermore, the average daily volume of trading across Tradeweb’s electronic marketplaces decreased by -4.1% YoY to $1.07 trillion during the fourth quarter of 2022.

Tradeweb's Full-Year ADV Grows 9.9% to $1.1trn in 2022
March was Tradeweb's best-performing month in 2022.

How Did Tradeweb Perform across Asset Classes in 2022?

In the fiscal year 2022, Tradeweb posted significant year-over-year growth across its rates, credit, equities and money markets asset classes. The same growth pattern was recorded in Q4 2022 across all markets except the rates market.

In detail, Tradeweb’s rates market ADV jumped 7.30% to $684.7 billion in FY2022 but declined -13.69% to $629.2 billion ADV during the last quarter of 2022. In contrast, the credit markets posted growth during both periods: the ADV jumped 15.16% to $21.6 billion and climbed 28.82% to $27.7 billion, respectively.

Furthermore, during Q4 and fiscal year 2022, Tradeweb’s equities market grew 7.8% to $17.2 billion ADV and rose even higher by 13.41% to $17.8 billion ADV in the full year of 2022. In addition, the money markets improved by 14.28% to $400.9 billion ADV and 13.19% to 399.203 billion ADV, respectively.

“Despite a complex backdrop of inflation, rates volatility, geopolitical risk and a strong U.S. dollar, we saw an increase of nearly 10 percent in our average daily volumes year-over-year in 2022. While rates volumes reflected these headwinds in the early part of the fourth quarter, we finished the year with a strong December across our global platform," Billy Hult, Tradeweb's new CEO, explained.

"The growth we experienced was broad-based across our markets and reflected stronger client engagement in an array of tools and protocols including portfolio trading, request-for-quote (RFQ) and request-for-market (RFM)," Hult added.

Tradeweb Posts Record ADVs

Meanwhile, Tradeweb disclosed that it posted several record daily average volumes both during Q4 2022 and the full year of 2022.

In the fiscal year 2022, some of these achievements include record ADVs in global portfolio trading, in US credit Tradeweb AllTrade, in emerging markets interest rate swaps and in global institutional exchange-traded funds (ETFs).

On the other hand, during Q4 2022, the electronic marketplaces operator hit record ADVs in institutional and retail municipal bond trading, in retail US government bonds, credit and money markets as well as in US institutional ETFs.

Tradeweb Markets, a NASDAQ-listed operator of electronic marketplaces for rates, credit, equities and money markets, generated a full-year ADV (average daily volume) of $1.1 trillion in 2022. This represents a 9.87% year-over-year (YoY) growth, the company said in its latest trading volume statistics report released on Thursday.

However, details shared by the operator showed that its total trading volume and ADV for December 2022 declined month-over-month (MoM) by -9% and -10% to $21.2 trillion and $1.02 trillion, respectively. The total volumes in December fell from the $23.2 trillion recorded in the prior month. On the contrary, the December ADV went up by 11.6% YoY. Furthermore, the average daily volume of trading across Tradeweb’s electronic marketplaces decreased by -4.1% YoY to $1.07 trillion during the fourth quarter of 2022.

Tradeweb's Full-Year ADV Grows 9.9% to $1.1trn in 2022
March was Tradeweb's best-performing month in 2022.

How Did Tradeweb Perform across Asset Classes in 2022?

In the fiscal year 2022, Tradeweb posted significant year-over-year growth across its rates, credit, equities and money markets asset classes. The same growth pattern was recorded in Q4 2022 across all markets except the rates market.

In detail, Tradeweb’s rates market ADV jumped 7.30% to $684.7 billion in FY2022 but declined -13.69% to $629.2 billion ADV during the last quarter of 2022. In contrast, the credit markets posted growth during both periods: the ADV jumped 15.16% to $21.6 billion and climbed 28.82% to $27.7 billion, respectively.

Furthermore, during Q4 and fiscal year 2022, Tradeweb’s equities market grew 7.8% to $17.2 billion ADV and rose even higher by 13.41% to $17.8 billion ADV in the full year of 2022. In addition, the money markets improved by 14.28% to $400.9 billion ADV and 13.19% to 399.203 billion ADV, respectively.

“Despite a complex backdrop of inflation, rates volatility, geopolitical risk and a strong U.S. dollar, we saw an increase of nearly 10 percent in our average daily volumes year-over-year in 2022. While rates volumes reflected these headwinds in the early part of the fourth quarter, we finished the year with a strong December across our global platform," Billy Hult, Tradeweb's new CEO, explained.

"The growth we experienced was broad-based across our markets and reflected stronger client engagement in an array of tools and protocols including portfolio trading, request-for-quote (RFQ) and request-for-market (RFM)," Hult added.

Tradeweb Posts Record ADVs

Meanwhile, Tradeweb disclosed that it posted several record daily average volumes both during Q4 2022 and the full year of 2022.

In the fiscal year 2022, some of these achievements include record ADVs in global portfolio trading, in US credit Tradeweb AllTrade, in emerging markets interest rate swaps and in global institutional exchange-traded funds (ETFs).

On the other hand, during Q4 2022, the electronic marketplaces operator hit record ADVs in institutional and retail municipal bond trading, in retail US government bonds, credit and money markets as well as in US institutional ETFs.

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