Tradeweb reports 28.7% rise in repo ADV for October
08 November 2024 US
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Tradeweb has seen a 28.7 per cent year-over-year (YoY) rise in repo average daily volume (ADV) traded on its platform in October, generating US$678.4 billion.
A continued increase in client activity on the repo trading platform drove elevated global repo activity, says the firm.
The combination of elevated funding rates, an unwind of the Federal Reserve’s (Fed) balance sheet, and current rates market activity continued to shift more assets from the Fed’s reverse repo facility to money markets.
Retail money market activity remained strong, adds Tradeweb, as investors adjusted to the potential for continued rate cuts.
For rates trades, US government bond ADV climbed 34.9 per cent YoY to US$220.8 billion. European government bond ADV increased by 26.3 per cent YoY to US$53.4 billion.
According to Tradeweb, US government bond volumes were supported by record volume in its institutional business, as well as strong growth in wholesale and retail volumes.
Strong European government bond market activity, as well as a growing client base, contributed to record European government bond volumes on the platform, the firm adds.
While ADV for swaps and swaptions dropped by 9.4 per cent YoY to US$416.6 billion, the total rates derivatives ADV increased by 5.9 per cent YoY to US$793.2 billion.
The activity was down due to a 40 per cent YoY decline in compression activity, says Tradeweb, which carries a lower fee per million.
Additionally, volatile markets in the run-up to the UK’s new budget and the US presidential election drove strong risk trading volume in swaps and swaptions.
Tradeweb clients continued to utilise the request-for-market (RFM) protocol for risk transfers, says the firm, while emerging markets swaps growth remained strong.
In credit markets, fully electronic US credit ADV was up 32.7 per cent YoY to US$7.4 billion, and European credit ADV grew by 17.6 per cent YoY to US$2.5 billion.
European credit volumes were driven by record volumes in Tradeweb’s Automated Intelligent Execution tool (AiEX) and Tradeweb AllTrade, says the firm.
A continued increase in client activity on the repo trading platform drove elevated global repo activity, says the firm.
The combination of elevated funding rates, an unwind of the Federal Reserve’s (Fed) balance sheet, and current rates market activity continued to shift more assets from the Fed’s reverse repo facility to money markets.
Retail money market activity remained strong, adds Tradeweb, as investors adjusted to the potential for continued rate cuts.
For rates trades, US government bond ADV climbed 34.9 per cent YoY to US$220.8 billion. European government bond ADV increased by 26.3 per cent YoY to US$53.4 billion.
According to Tradeweb, US government bond volumes were supported by record volume in its institutional business, as well as strong growth in wholesale and retail volumes.
Strong European government bond market activity, as well as a growing client base, contributed to record European government bond volumes on the platform, the firm adds.
While ADV for swaps and swaptions dropped by 9.4 per cent YoY to US$416.6 billion, the total rates derivatives ADV increased by 5.9 per cent YoY to US$793.2 billion.
The activity was down due to a 40 per cent YoY decline in compression activity, says Tradeweb, which carries a lower fee per million.
Additionally, volatile markets in the run-up to the UK’s new budget and the US presidential election drove strong risk trading volume in swaps and swaptions.
Tradeweb clients continued to utilise the request-for-market (RFM) protocol for risk transfers, says the firm, while emerging markets swaps growth remained strong.
In credit markets, fully electronic US credit ADV was up 32.7 per cent YoY to US$7.4 billion, and European credit ADV grew by 17.6 per cent YoY to US$2.5 billion.
European credit volumes were driven by record volumes in Tradeweb’s Automated Intelligent Execution tool (AiEX) and Tradeweb AllTrade, says the firm.
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