Trading platforms recorded double digit growth in average daily volumes (ADV) in June 2024. Tradeweb saw its June 2024 fully electronic US credit ADV up 41.4% year-over-year (YoY) to $7 billion, while MarketAxess saw June total ADV up 33.8% YoY. Euronext saw its MTS cash ADV in June reach €41.3 million, up 29% month-over-month (MoM), from €32 million, and a 74% YoY increase. Fixed income electronic trading platform Trumid reported ADV in June as US$4.7 billion, up 47% YoY.
Tradeweb
Tradeweb reported total trading volume for the month of June 2024 of US$37.5 trillion. Average daily volume (ADV) for the month was US$1.94 trillion, an increase of 40.9% year-over-year (YoY).
In Q2 2024, total trading volume was US$121 trillion and ADV was US$1.92 trillion, an increase of 48.3% YoY.
Tradeweb CEO Billy Hult said: “Tradeweb in Q2 reported double digit, YoY volume growth in rates, credit, money markets and equities. We set new records for quarterly ADV in US government bonds, fully electronic US high yield and repo, as well as capturing record share of fully electronic U.S. high grade credit.
“The second quarter of 2024 culminated with a strong June, led by a 54% YoY increase in rates ADV and continued momentum in credit ADV – up 67% YoY. In addition to volatility across many of our markets, Tradeweb volumes in June and throughout Q2 reflected increased adoption in a range of trading protocols and strong client engagement.”
In June, US government bond ADV was up 50.8% YoY to US$210.7 billion, while European government bond ADV was up 17.4% YoY to US$50.5 billion. Market volatility and sustained primary issuance across Europe and the UK helped drive trading volume in European government bonds, especially gilts.
Tradeweb said US government bond volumes were boosted by growth across all client sectors. “Increased adoption across a range of protocols and favourable market conditions contributed to the increase in volume. The addition of r8fin continues to contribute positively to wholesale volumes,” the firm added.
Mortgage ADV was up 22.9% YoY to US$208.9 billion, while fully electronic US credit ADV was up 41.4% YoY to US$7 billion, driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade.
European credit ADV was up 24.2% YoY to US$2.5 billion. In Europe, portfolio trading and our unique dealer selection tool (SNAP IOI) saw increased client adoption.
Municipal bonds ADV was up 30.4% YoY to US$410 million. Credit derivatives ADV was up 92% YoY to US$14.7 billion.
In equities, US ETF ADV was down 11.1% YoY to US$8.1 billion and European ETF ADV was up 18.1% YoY to US$2.8 billion. “ETF market volumes remained muted as market volatility remained low,” Tradeweb noted. “On Tradeweb, US ETF institutional volumes remained strong, while wholesale market volumes were lower. European ETF volumes grew as clients continued to embrace our automated rules-based trading protocol.”
MarketAxess
MarketAxess saw June total ADV up 33.8% YoY, based on strong growth in total credit and rates ADV.
Chris Concannon, CEO of MarketAxess, said: “In the second quarter, we delivered 12.4% growth in total credit ADV, driven by strength in US high-grade (+13%), emerging markets (+23%), municipals (+34.2%) and Eurobonds (+8.3%).
“We exited the second quarter with US high-grade estimated market share of 19.9% in June (20.2% including single-dealer portfolio trades), reflecting sequential monthly improvement through the quarter. A record 56% of our portfolio trading volume was executed on X-Pro during the quarter, as momentum continues to build with the roll-out.”
Total average daily volume for June stood at US$36.5 billion, up 33.8% YoY (a 13.5% increase compared to May 2024) on strong growth in total credit ADV (US$14 billion), up 14.3% YoY (up 5% compared to May 2024), and a 49.8% YoY increase in total rates ADV (up 19.4% compared to May 2024).
In US credit, June saw US high-grade ADV hit US$6.6 billion, up 17% YoY (up 8.2% compared to May 2024) on a 21.2% YoY increase in estimated market ADV (up 1.2% compared to May 2024).
In June, US high-yield credit ADV stood at US$1.3 billion, down 13.8% YoY (down 5.2% compared to May 2024). US high-yield estimated market ADV increased 1.1% compared to the prior year, but decreased 12.7% compared to May 2024.
Emerging markets ADV reached US$3.6 billion, up 17.9% YoY (up 17.1% compared to May 2024). The year-over-year increase was driven by a 25.1% increase in hard currency ADV, and record local currency markets ADV, up 12%.
Eurobonds ADV stood at US$2 billion, up 16.1% compared to the prior year, but down 11.5% from May 2024.
Municipal bond ADV reached US$549 million, up 48.4% YoY (but down 4.9% compared to May 2024), with estimated market ADV down 6.2% YoY (down 1.1% compared to May 2024).
Total rates ADV was US$22.5 billion, up 49.8% versus the prior year, and up 19.4% from May 2024.
In the second quarter of 2024, MarketAxess’ total ADV stood at US$34.2 billion, up 22.8% YoY, on strong growth in total credit ADV (US$13.7 billion), up 12.4%, and a 30.9% YoY increase in total rates ADV.
US high-grade ADV reached US$6.4 billion, up 13% YoY. US high-yield ADV dropped to US$1.3 billion, down 9.3% YoY. “We believe the decrease in US high-yield estimated market share year-over-year was driven, in part, by lower levels of credit spread volatility and a greater focus on the new issue calendar by our long-only client segment,” the firm noted.
Lower levels of credit spread volatility also drove an estimated 37.1% decrease in ETF market maker client activity on the platform.
US high-yield new issuance was US$77.9 billion, up 43.9% from the prior year.
Emerging markets ADV hit US$3.3 billion in Q2 2024, up 23% YoY, driven by a 25.6% YoY increase in hard currency ADV, and a 17.4% YoY increase in local markets ADV.
MarketAxess reported a ‘record’ US$4.7 billion in emerging markets portfolio trading volume.
Eurobonds ADV stood at US$2.1 billion, up 8.3% YoY.
Municipal bond ADV was US$522 million, up 34.2% YoY, with estimated market ADV down 2.1%. Total rates ADV was US$20.4 billion in Q2 2024, up 30.9% versus the prior year.
Euronext
In June 2024, Euronext saw its MTS cash ADV reach €41.3 million, up 29% month-over-month (MoM), from €32 million, and a 74% YoY increase (up from €24 million). In Q2 2024, MTS cash reached €36.3 million, a 68% change against the same period the year prior.
MTS repo ADV in June increased 5% against the previous month, reaching €178.6 million. There was a 3% YoY increase. ADV for MTS repo in Q2 2024 hit €174.2 million, a 2% increase against the same period in the year prior.
Trumid
Fintech and fixed income electronic trading platform Trumid reported ADV in June as US$4.7 billion, up 47% YoY.
For Q2 2024, ADV grew 61% versus Q2 2023 and overall market share was up 30%.
Trumid RFQ recorded its fourth consecutive quarter of sequential growth with record traded volume, up nearly 40% quarter-over-quarter. Around 600 users initiated a Trumid RFQ in Q2 and around 700 users responded to an RFQ in Q2.
Trumid’s strong high yield momentum continued into Q2 2024. Trumid’s high yield ADV was up 32% YoY.
©Markets Media Europe 2024
