November 2024 proved a remarkable month for Tradeweb
Markets, as the company hit new highs in trading activity. The platform
experienced significant volumes across US bonds, ETFs, and repo markets, with
$48.8 trillion in total trading volume and a 30.5% year-over-year growth.
Political events like the US election and global
uncertainty played an important role in boosting this unprecedented activity.
Tradeweb’s bond trading performance stood out, with US government bonds
experiencing a substantial 50.3% YoY increase in average daily volume, reaching
$246 billion.
European Government Bonds
European government bond trading also surged, growing
18.7% YoY to $53.1 billion. This growth stemmed from a mix of heightened
volatility and broader client adoption of Tradeweb’s diverse trading protocols.
According to Tradeweb’s official statement, Mortgage trading volumes rose 22.5% YoY to $230.6
billion, supported by consistent to-be-announced activity and record
client engagement on Tradeweb’s specified pool platform. However, not all
sectors experienced gains.
Swaps and swaptions trading fell 26.2% year over year, reflecting
reduced compression activity despite higher risk-trading volumes spurred by
volatile market conditions.
Today we reported total trading volume for the month of November 2024 of $48.8 trillion. Average daily volume for the month was $2.35tn, an increase of 30.5% YoY. Read more: https://t.co/z2F41ND1kc pic.twitter.com/1g7xLPow8A
— Tradeweb (@Tradeweb) December 5, 2024
US credit trading volumes increased by 20.8% YoY,
reaching $7.4 billion, driven by higher adoption of request-for-quote protocols
and portfolio trading. European credit volumes rose 8.7% YoY to $2.5 billion,
bolstered by increased portfolio trading toward month-end and the growing use
of Tradeweb’s Automated Intelligent Execution tool.
ETFs and Repo Markets Shine
Municipal bonds, however, saw a 13.8% YoY decline in
activity, although they still outperformed the broader market, which faced an
18.8% contraction. In contrast, credit derivatives posted significant
growth, up 37.2% YoY, reflecting increased hedge fund and systematic trading
activity amid heightened credit volatility.
Equity trading also saw robust growth, with US ETFs
climbing 21.9% YoY to $8.6 billion and European ETFs surging 29.2% YoY to $3.3
billion. The trend reflects investor repositioning following the US election.
Meanwhile, repo trading volumes broke records, growing
31.4% YoY to $702.5 billion, driven by market activity shifts in response to
Federal Reserve policy adjustments. Tradeweb’s November growth underscores the platform’s
ability to navigate complex market conditions while delivering scalable
solutions to its clients.
This article was written by Jared Kirui at www.financemagnates.com.
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