Tradeweb Marks $38.2 Trillion Trading Volume in November, as ADV Surges by 59.2% Y-o-Y

<p>Tradeweb
Markets Inc. has reported trading volumes for November 2023, reaffirming its position
as a global operator of electronic marketplaces for rates, credit, equities,
and money markets. The total trading volume for the month reached an impressive
$38.2 trillion, with an average daily volume (ADV) at a record $1.80 trillion,
marking a substantial Y-o-Y rise of 59.2%.</p><p>Retail
Market Boosts Tradeweb's Volumes amid Higher Interest Rates</p><p>In
the rates market, Tradeweb experienced notable growth, with U.S. government
bond ADV rising 19.5% Y-o-Y to $163.7 billion. European government bond ADV
also saw a significant rise of 30.5% Y-o-Y, reaching $44.8 billion. This surge
in volumes was attributed to growth across all client sectors, increased
adoption of diverse trading protocols on the institutional platform, and
sustained rates of market volatility. The retail market, driven by higher
interest rates, further contributed to record-breaking volumes.</p><p>Mortgage-backed
securities exhibited a Y-o-Y rise 16.7% in ADV, reaching $188.3 billion, driven by
strong To-Be-Announced volumes from hedge fund accounts and elevated roll
activity. Swaps and swaptions with a maturity of one year or more experienced a
remarkable Y-o-Y ADV surge of 178.4% to $580.8 billion, with total rates
derivatives ADV up 132.6% Y-o-Y to $795.1 billion. </p><p>These record <a href="https://www.financemagnates.com/tag/trading-volumes/" target="_blank" rel="follow">volumes</a> were propelled by increased client activity, substantial Y-o-Y growth in compression activity, and strong performances in
global inflation swaps, request-for-market protocol, and emerging market swaps.</p><blockquote><p lang="en" dir="ltr">Today we reported total trading volume for November 2023 of $38.2tn and record average daily volume of $1.80tn. Read more: <a href="https://t.co/YrtTSP7g79">https://t.co/YrtTSP7g79</a> <a href="https://t.co/BP2Zdu8BXz">pic.twitter.com/BP2Zdu8BXz</a></p>— Tradeweb (@Tradeweb) <a href="https://twitter.com/Tradeweb/status/1732017672123002941?ref_src=twsrc%5Etfw">December 5, 2023</a></blockquote><p>Municipal
Bonds Experience Slight Dip amid Lower Yields </p><p>In
the credit market, fully electronic U.S. credit ADV increased 32.0% Y-o-Y to
$6.1 billion, and European credit ADV rose 29.7% Y-o-Y to $2.3 billion.
Notably, U.S. High Grade activity achieved record ADV, reflecting continued
client adoption in <a href="https://www.financemagnates.com/tag/tradeweb/">Tradeweb</a>
protocols. Municipal bonds ADV, however, experienced a slight dip of 0.2% Y-o-Y
to $475 million, attributed to somewhat muted retail municipal bond activity
against a backdrop of lower yields.</p><p>Equities
and money markets displayed positive trends, with U.S. ETF <a href="https://www.financemagnates.com/tag/adv/" target="_blank" rel="follow">ADV</a> increasing 4.5% Y-o-Y
to reach $7.0 billion, European ETF ADV rising 10.0% Y-o-Y to $2.6 billion, and
repurchase agreement ADV surging 35.2% Y-o-Y to $534.7 billion. Institutional client
engagement in U.S. ETFs remained robust, while increased client adoption of
Tradeweb's electronic trading solutions drove record global repo activity.</p>

This article was written by Tareq Sikder at www.financemagnates.com.