Tradeweb Reports 25% Jump in Q2 Profit, Boosted by Surging Trading Activity

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The fixed income, derivatives, and ETF electronic trading platform Tradeweb Markets has released its financial results for the second
quarter of 2023, disclosing an increase in profit and revenue. The positive
performance was driven by growth in its government securities and US and
European credit segments.</p><p>During the period, <a href="https://www.financemagnates.com/tag/tradeweb/" target="_blank">Tradeweb's</a> revenue increased by 5% year-over-year to USD
$310 million. The firm's revenue from the money markets segment increased the most by 30%
compared to the same period last year. The revenue from the fixed income,
credit, and market data segments increased by 6%, 0.1%, and 8%, respectively. However,
Tradeweb's revenue from <a href="https://www.financemagnates.com/terms/e/equities/">equities</a> dropped by 3%.</p><p>Tradeweb Declares
Dividend</p><p>Besides that, the New
York-based company reported a 25% increase in net income to USD $101 million in
the quarter. Thus the company declared a cash dividend of USD $0.09 per share and
bought back shares worth USD $7 million during the period. Additionally, its
operating expenses increased by 2% to USD $194 million.</p><p>Additionally, the Nasdaq-listed
<a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> reported a 10% year-over-year increase in the average
daily volume (ADV) to USD $1.3 trillion during the quarter. However, the figures
of the ADV represent a decline compared to the USD $1.4 trillion <a href="https://www.financemagnates.com/institutional-forex/tradewebs-revenue-rises-57-as-q1-adv-hits-record-14t/" target="_blank">reported
in the first quarter</a>, which
was boosted by an increase in revenue from the US government bonds and retail money markets.</p><p>Improving Market
Conditions</p><p>Commenting about the quarterly report, Billy Hult, the CEO of Tradeweb, said: "Market
conditions steadily improved during the second quarter, with our business
performance well against a backdrop of mixed markets. We produced a
double-digit growth across the global government bonds."</p><p>During the second
quarter, Tradeweb agreed to <a href="https://www.financemagnates.com/institutional-forex/tradeweb-confirms-au125-million-acquisition-of-yieldbroker/" target="_blank">acquire
Yieldbroker</a>, a trading
platform offering Australian and New Zealand government bonds and interest
rates derivatives. The deal, worth AUD $125 million, is expected to be
concluded at the end of the year.</p><p>Tradeweb
collaborated with Bloomberg and MarketAxess to establish an independent company
for participating in public procurement procedures in the EU during the period. Additionally, the
company partnered with FTSE Russell to launch benchmark closing prices for European government bonds. </p>

This article was written by Jared Kirui at www.financemagnates.com.