MarketAxess saw its US high-yield average daily volumes (ADV) for Q3 2023 drop 20.4% against Q3 2022, standing at US$1.3 billion, while high-grade ADV for Q3 2023 YoY remained largely steady at US$5.2billion, up 1.1%.
The 8% increase in emerging markets ADV to US$2.8 billion in Q3 2023 YoY was driven by a 27% increase in local markets trading volume, partially offset by a 4.2% decline in hard currency trading volume. There was an 18.2% increase in Eurobonds ADV to US$1.5 billion in Q3 2023 YoY while municipal bond ADV was up 7.5% to US$388 million over the same period. Total credit ADV was up 1.7% in Q3 2023 YoY to US$11.2 billion.
Chris Concannon, CEO of MarketAxess, said, “Our international businesses and our municipal bond offering registered solid ADV growth in the quarter, reflecting the benefits of our geographic and product diversification. Continued low levels of volatility dampened ETF market maker activity and favoured select trading protocols, including portfolio trading. Adoption of our new trading platform, MarketAxess X-Pro, continues to expand.”
He continued, “We are seeing early signs that our unique proprietary data is enhancing the client experience, including the execution of portfolio trades, and the final week of September was our second strongest week of credit trading volume ever. Additionally, we just completed the acquisition of Pragma, which we expect to accelerate our automation and client algo strategies. We believe that the rapid increase in interest rates since 2022 and the growing risks in financial markets will drive increased credit market volatility in the coming quarters.”
Tradeweb reported total trading volume for September 2023 of US$31.8 trillion. Average daily volume (ADV) for the month was a reported record US$1.57 trillion, an increase of 30.8% YoY. For Q3 2023, total trading volume was US$90.4 trillion and ADV was US$1.42 trillion, an increase of 29.6% YoY.
US government bond ADV was up 12.4% in Q3 2023 YoY to US$145.3 billion. European government bond ADV was up 1.9% YoY to US$42.4bn across the same period. The firm said US government bond volumes were supported by growth across all client sectors and higher interest rates continued to drive trading in the retail market. US and European government bond volumes were supported by sustained rates market volatility.
Fully electronic US credit ADV was up 14.3% YoY in Q3 2023 to US$4.9 billion and European credit ADV was up 22.6% YoY to US$2.1 billion. Strong US credit volumes reflected continued client adoption across Tradeweb protocols, including request-for-quote (RFQ), Tradeweb AllTrade and portfolio trading. Higher European credit volumes were supported by strong activity in sessions-based trading and RFQ. Credit derivatives ADV was down 1.1% YoY to US$36.6 billion.
Municipal bonds ADV was down 7.1% YoY to US$357 million in Q3 2023. Tradeweb said municipal volumes reflected healthy institutional and retail client activity, as broader municipal bond market volumes declined 15.4%.
CME Group saw an average daily volume (ADV) of 22.7 million futures contracts in September, representing the company’s second-highest September ADV on record. Q3 ADV was 22.3 million contracts, the second-highest Q3 volume ever.
The firm’s US Treasuries average daily notional volume dropped 22% in September 2023 YoY from US$127.5 billion to US$99.9 billion.
Q3 2023 ADV for interest rates increased 6% against Q3 2022 while equities dropped 15% across the same period. Monthly ADV in September 2023 for interest rates dropped 10% YoY while equities saw a more substantial decline of 24% over the same period.
©Markets Media Europe 2023
