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Tradeweb Markets, the leading fixed-income, derivatives, and ETF electronic trading platform for institutions, wholesale, and retail investors and dealers, recently released its trading figures for December 2023.
According to the platform, December has seen a significant surge in trading volume, allowing it to reach a figure of $28.9 trillion in a single month. More than that, the figure represents a 43.3% increase compared to December 2022.
Tradeweb reports a massive surge across different sectors
According to Tradeweb’s report, the company has seen a surge in trading volumes, credit, encompassing rates, money markets, equities, underscores, and exceptional trends in the financial landscape.
The platform’s rates market saw an impressive uptrend, particularly regarding the figures for the US market. The company reported that the US government bond ADV rose 39.8% year-on-year (YoY), reaching $159.5 billion. The boost was believed to have been driven by market volatility and the diverse trading protocols that the platform employs.
European government bond ADV also saw a significant increase, although much smaller than its US counterpart. The firm reported an increase of 21.5% YoY, which still rose to $33.4 billion. The ongoing market fluctuations and strong hedge fund activity also drove this increase.
The platform also revealed that the mortgage sector saw its own notable surge of 34.1% YoY, which reflected a rally in market rates and increased customer activities.
After considering credit segments, Tradeweb noted a 56.4% YoY increase in fully electronic US credit ADV, with a total figure of $5.6 billion. As for the European credit ADV, it surged by 26.2% YoY, reaching $1.6 billion in total.
The figures continue to rise on a monthly and yearly basis
The company also noted that the municipal bond ADV slightly decelerated. Its report shows that US ETFs and European ETFs saw significant increases of 44.3% and 29.1%, respectively, and equities, in general, demonstrated an upturn, with some of the highest volumes among all institutional platforms.
The company also recorded significant success in the money markets segment, with repurchase agreement ADV going up by 34.2% YoY, reaching a total of $508.7 billion. The upswing is believed to be a result of the growing adoption of electronic trading solutions that the platform is offering, as well as other factors, like prevailing market rates and global repo activity.
Back in November, the company reported a substantial surge in trading volumes as well, reaching $38.2 trillion at the time. Its ADV climbed up to $1.80 trillion, which was attributed to the major growth across numerous markets, including money markets, credit, equities, and rates.
Tradeweb observed a particular growth in the rates market, when the US government bond ADV rose by nearly 20% YoY, reaching $163.7 billion.
