Tradeweb Reports July 2024 Total Trading Volume of $40.5 Trillion and Average Daily Volume of $1.82 Trillion

July 2024 ADV up 43.5% YoY

NEW YORK--(BUSINESS WIRE)--Tradeweb Markets Inc. (Nasdaq: TW), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, today reported total trading volume for the month of July 2024 of $40.5 trillion (tn)¹. Average daily volume (ADV) for the month was $1.82tn, an increase of 43.5 percent (%) year-over-year (YoY).

In July 2024, Tradeweb records included:

• Share of fully electronic U.S. high yield TRACE
• ADV in global repurchase agreements

July 2024 Highlights

RATES

• U.S. government bond ADV was up 47.4% YoY to $206.1 billion (bn). European government bond ADV was up 16.5% YoY to $42.9bn.
  • U.S. government bond volumes were supported by growth across all client sectors. Increased adoption across a range of protocols and favorable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes. Strong double-digit YoY growth in European government bonds and UK Gilts was supported by sustained volatility on the back of key political elections in Europe and the UK earlier in July, as well as a continued active primary market during the first half of the month.
• Mortgage ADV was up 17.6% YoY to $196.8bn.
  • Record July To-Be-Announced (TBA) activity was driven by robust roll trading activity and significant participation from fast-money accounts. Specified pool trading volumes were up YoY.
• Swaps/swaptions ≥ 1-year ADV was up 38.9% YoY to $351.5bn and total rates derivatives ADV was up 85.7% YoY to $671.4bn.
  • Strong volume in swaps/swaptions ≥ 1-year was driven by ongoing institutional client activity, strong tailwinds from global political uncertainties and a 23% YoY increase in compression activity, which carries a lower fee per million. Central banks continued to contribute to increased volatility due to active discussions on rate movements. Clients continued to utilize the request-for-market (RFM) protocol for risk transfers especially in inflation swaps and non-G3 currencies. Emerging markets swap growth remained strong. July compression activity was lower than 2Q24.

CREDIT

• Fully electronic U.S. credit ADV was up 38.3% YoY to $6.7bn and European credit ADV was up 10.5% YoY to $2.1bn.
  • U.S. credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade®. Tradeweb captured 17.8% and a record 9.1% of fully electronic U.S high grade and U.S. high yield TRACE, respectively, as measured by Tradeweb. European credit volumes continued to be led by strong client adoption of portfolio trading as well as increased client adoption of Tradeweb AllTrade®, Automated Intelligent Execution (AiEX) and our unique dealer selection tool (SNAP IOI).
• Municipal bonds ADV was up 21.6% YoY to $363 million (mm).
  • Volume growth outpaced the broader market, which was up approximately 11% YoY², as Tradeweb institutional and retail volumes surpassed 20% YoY growth amidst robust issuance.
• Credit derivatives ADV was up 44.0% YoY to $10.8bn.
  • Increased hedge fund and systematic account activity, along with heightened credit volatility, led to increased swap execution facility (SEF) and multilateral trading facility (MTF) credit default swaps activity.

EQUITIES

• U.S. ETF ADV was down 1.7% YoY to $8.0bn and European ETF ADV was up 9.3% YoY to $2.3bn.
  • ETF market volumes continued to be muted as market volatility remained low. On Tradeweb, U.S. ETF institutional volumes were strong, while wholesale volumes were lower YoY. European ETF volumes increased as clients continued to embrace our automated rules-based trading protocol.

MONEY MARKETS

• Repo ADV was up 25.3% YoY to $621.8bn.
  • Increased client activity on Tradeweb’s electronic repo trading platform drove record global repo activity. The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve’s reverse repo facility to money markets. Retail money markets activity was strong as markets priced in less aggressive Fed rate cuts.

Please refer to the report posted to https://www.tradeweb.com/newsroom/monthly-activity-reports/ for complete information and data related to our historical monthly, quarterly and yearly ADV and total trading volume across asset classes.

About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading, global operator of electronic marketplaces for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analytics, electronic trading, straight-through-processing and reporting for more than 50 products to clients in the institutional, wholesale and retail markets. Advanced technologies developed by Tradeweb enhance price discovery, order execution and trade workflows while allowing for greater scale and helping to reduce risks in client trading operations. Tradeweb serves more than 2,500 clients in more than 70 countries. On average, Tradeweb facilitated more than $1.7 trillion in notional value traded per day over the past four fiscal quarters. For more information, please go to www.tradeweb.com.

Basis of Presentation
All reported amounts are presented in U.S. dollars, unless otherwise indicated. In determining the reported U.S. dollar amounts for non-U.S. dollar denominated securities, the non-U.S. dollar amount for a particular month is translated into U.S. dollars based on the monthly average foreign exchange rate for the prior month. Volumes presented in this release exclude volumes generated by (i) unbilled trial agreements, (ii) products billed on an agreement basis where we do not calculate notional value, and (iii) products that are not rates, credit, equities or money markets products. Please see the footnotes on page 3 of the full report for information regarding how we calculate market share amounts presented in this release.

Market and Industry Data
This press release and the complete report include estimates regarding market and industry data that we prepared based on our management’s knowledge and experience in the markets in which we operate, together with information obtained from various sources, including publicly available information, industry reports and publications, surveys, our clients, trade and business organizations and other contacts in the markets in which we operate. In presenting this information, we have made certain assumptions that we believe to be reasonable based on such data and other similar sources and on our knowledge of, and our experience to date in, the markets in which we operate. While such information is believed to be reliable for the purposes used herein, no representations are made as to the accuracy or completeness thereof and we take no responsibility for such information.

Forward-Looking Statements
This release contains forward-looking statements within the meaning of the federal securities laws. Statements related to, among other things, our outlook and future performance, the industry and markets in which we operate, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions and future events are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed under the heading “Risk Factors” in the documents of Tradeweb Markets Inc. on file with or furnished to the SEC, may cause our actual results, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. In particular, preliminary average variable fees per million dollars of volume traded are subject to the completion of management’s final review and our other financial closing procedures and therefore are subject to change. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements contained in this release are not guarantees of future events or performance and future events, our actual results of operations, financial condition or liquidity, and the development of the industry and markets in which we operate, may differ materially from the forward-looking statements contained in this release. In addition, even if future events, our results of operations, financial condition or liquidity, and events in the industry and markets in which we operate, are consistent with the forward-looking statements contained in this release, they may not be predictive of events, results or developments in future periods.

Any forward-looking statement that we make in this release speaks only as of the date of such statement. Except as required by law, we do not undertake any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise, after the date of this release.

¹ Tradeweb acquired Yieldbroker on August 31, 2023 and r8fin on January 19, 2024. Total volume reported includes volumes from each acquired business subsequent to the date of the applicable acquisition.

² Based on data from MSRB