Tradeweb Reports March 2023 Total Trading Volume of $34.7 Trillion and Record Average Daily Volume of $1.51 Trillion

First quarter 2023 total trading volume was $85.3tn and ADV was a record $1.36tn, an increase of 16.2% YoY, with preliminary average variable fees per million dollars of volume traded of $2.71.1

April 5, 2023 - Tradeweb Markets an operator of electronic marketplaces for rates, credit, equities and money markets, reported total trading volume for March 2023 of $34.7 trillion (tn). Average daily volume (ADV) for the month was a record $1.51tn, an increase of 23.0 percent (%) year-over-year (YoY). 

A summary overview of their March 2023 highlights is provided below.

RATES

U.S. government bond ADV was up 1.5% YoY to $150.9 billion (bn). European government bond ADV was up 11.8% to $42.4bn.

• Record retail U.S. government bond activity and strong institutional volumes were offset by declines in wholesale trading. Higher interest rates continued to drive trading in the retail market. U.S. and European government bond volumes were supported by a significant rise in rates market volatility.
• Mortgage ADV was down 10.6% YoY to $166.2bn.
• While market uncertainty and volatility weighed on overall activity, institutional specified pool trading set a new record due to growing client engagement.
• Swaps/swaptions ≥ 1-year ADV was up 42.2% YoY to $355.0bn and total rates derivatives ADV was up 51.7% to $609.1bn.
• Record volume in swaps/swaptions ≥ 1-year was driven in part by a surge in interest rate volatility, particularly in shorter dated instruments and higher compression activity. Strong volumes continued to be supported by record activity in both global inflation and emerging markets swaps, as well as robust client adoption of the request-for-market (RFM) protocol.

CREDIT

Fully electronic U.S. credit ADV was up 18.2% YoY to $4.4bn and European credit ADV was down 14.9% to $1.8bn.

• Strong U.S. credit volumes reflected continued client adoption across Tradeweb protocols, including RFQ, Tradeweb AllTrade and portfolio trading. Tradeweb’s share of fully electronic U.S. High Grade and U.S. High Yield TRACE was 12.9% and 6.0%, respectively. Heightened market volatility weighed on European credit volumes.
• Municipal bonds ADV was up 6.3% YoY to $285 million (mm).
• Municipal volumes reflected healthy institutional and retail client activity. Market volatility and elevated interest rates continued to boost volumes overall.
• Credit derivatives ADV was up 11.9% YoY to $39.4bn.
• Semiannual rolling activity as well as market-wide volatility continued to boost volumes overall.

EQUITIES

U.S. ETF ADV was up 2.6% YoY to $8.5bn and European ETF ADV was down 25.8% to $2.8bn.

• Strong U.S. institutional ETF activity, driven by further adoption of Tradeweb’s RFQ protocol, was more than offset by declining wholesale volumes. European ETF volumes reflected declining overall market volumes.

MONEY MARKETS

Repurchase agreement ADV was up 23.0% YoY to $444.5bn.

• Continued client adoption of Tradeweb’s electronic trading solutions drove record global repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity reached a record high as interest rates remained elevated.