Tradeweb’s August Trading Volume Reaches $33 Trillion Following Strong Quarter

<p>The global operator of electronic marketplaces, Tradeweb
Markets, has released its August 2023 trading report, highlighting a total
trading volume of USD $33 trillion and an average daily trading volume (ADV) of
USD $1.44 trillion.</p><p>Under the rates segment, the ADV for US
government bonds increased by 14.9% year-over-year, reaching USD $142.7
billion. Besides that, the ADV for the European government bonds surged by 19% year-over-year to USD $32.9
billion. According to the company’s statement, the growth was driven by robust
activity across all client sectors, high interest rates, and
sustained market volatility.</p><p>High Interest Rate Volatility</p><p>Additionally, the swaps market
for maturities that are greater than one year skyrocketed by 125.4% year-over-year to
USD $381.8 billion. The total rates derivatives ADV increased 89% year-over-year,
reaching USD $535 billion. This record volume is reportedly attributed to
heightened interest rate <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a>, especially in short-term instruments.</p><p>Tradeweb made
significant strides in credit markets. The fully electronic US credit ADV surged by
38% year-over-year to USD $4.8 billion, while European credit ADV climbed by
48.5% year-over-year to USD $1.6 billion. This growth was driven by continued
client adoption across Tradeweb’s protocols, the company stated.</p><p>A week ago, <a href="https://www.financemagnates.com/institutional-forex/tradeweb-completes-a125-million-acquisition-of-yieldbroker/" target="_blank" rel="follow">Finance
Magnates</a> reported that
Tradeweb Markets had successfully completed its AUD $125 million all-cash <a href="https://www.financemagnates.com/institutional-forex/tradeweb-completes-a125-million-acquisition-of-yieldbroker/" target="_blank" rel="follow">acquisition
of Yieldbroker</a>, an
Australian <a href="https://www.financemagnates.com/terms/t/trading-platform/">trading platform</a> specializing in government bonds and interest rate
derivatives. With this acquisition, the company stated that Yieldbroker’s
clients will gain access to Tradeweb’s multi-asset marketplace, liquidity, and
technology.</p><p>Tradeweb Expands Global
Operations</p><p>This acquisition came on the heels of Tradeweb’s <a href="https://www.financemagnates.com/institutional-forex/tradeweb-reports-25-jump-in-q2-profit-boosted-by-surging-trading-activity/" target="_blank" rel="follow">strong
financial performance</a> in
the second quarter of the year, with a 5% year-over-year increase in revenue,
reaching USD $310 million. Notably, the money markets segment saw remarkable
growth, with a 30% increase in revenue compared to the previous year’s quarter.</p><p>Additionally, Tradeweb
reported a notable 10% year-over-year increase in the average daily volume
(ADV) during the second quarter, amounting to USD $1.3 trillion. This figure
represents a slight decline compared to USD $1.4 trillion reported in the first
quarter, which was attributed to increased revenue from US government bonds and
retail money markets.</p><p>During the second
quarter, Tradeweb made strategic moves to further enhance its market presence.
The company entered into <a href="https://www.financemagnates.com/institutional-forex/tradeweb-reports-25-jump-in-q2-profit-boosted-by-surging-trading-activity/" target="_blank" rel="follow">collaborations
with Bloomberg and MarketAxess</a> to
establish an independent company participating in public procurement procedures
in the EU. Furthermore, 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.