Tradeweb's May 2024 ADV Sees Momentum Slowdown, Yet Shows Significant YoY Increase

Tradeweb Markets Inc. (Tradeweb), a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, updated its trading metrics for May 2024, reporting a total trading volume of $41.7 trillion for the period, a slight decrease compared to $41.9 trillion in the prior month and a significant increase of 41.8% compared to $29.4 trillion in the year-ago month.

Average daily volume (ADV) for the period came in at $1.90 trillion, decreasing 2.1% on a month-on-month basis (MoM) (April 2024: $1.94 trillion) and increasing 40.7% on a year-on-year basis (YoY) (May 2023: $1.35 trillion).

Trading Overview for May 2024

Rates Market

• The U.S. government bond ADV reached $192.5 billion for the month, 6.2% lower than $205.3 billion in the prior month and 33.4% higher than $144.3 billion in the same period of last year.

• The European government bond ADV dropped 9.9% MoM from $45.6 billion to $41.4 billion, basically unchanged compared to $41.6 billion in the year-ago period.

• Mortgages ADV was 197.1 billion for the month, dropping 4.4% MoM compared to $206.1 billion and rising 18.3% YoY compared to $166.6 billion.

• Swaps/Swaptions ≥ 1-year ADV amounted to $484.2 billion for the month, up 1.8% compared to $475.7 billion in the period month and up 53.3% compared to $315.8 billion in last May.

• Total rates derivatives ADV decreased 1.4% from $796.0 billion in this April to $784.6 billion for the month, jumping 67.9% compared to $467.3 billion in May of last year.

Credit Market

• In May 2024, the fully electronic U.S. credit ADV was down 17.5% MoM from $8.0 billion to $6.6 billion, an increase of 46.7% compared to $4.5 billion in the prior year period.

• European credit ADV was down 4.3% MoM from $2.3 billion to $2.2 billion for the month, rising 15.8% compared to $1.9 billion in the same period of last year.

• Municipal bonds ADV came in at $357 million for the period, 2.9% higher than $347 million in the prior month and 11.2% higher than $321 million in the year-ago month.

• Credit derivatives ADV declined 43.1% MoM from $15.3 billion to $8.7 billion, rising 4.8% compared to $8.3 billion in the same period of 2023.

Equities Market

• The U.S. ETF ADV reached $6.1 billion for the period, down 21.8% compared to $7.8 billion in April this year and down 15.3% compared to $7.2 billion in May of last year.

• European ETF ADV was $2.3 billion, down 17.9% compared to $2.8 billion in the prior month and down 4.2% compared to $2.4 billion in the year-ago month.

Money Market

• In May 2024, ADV of repurchase agreement amounted to 605.1 billion, increasing 1.2% compared to $598.2 billion in April 2024 and jumping 28.7% compared to $470.2 billion in May 2023.