Fixed income platforms saw their average daily volume (ADV) in September reach record highs with MarketAxess witnessing a 52% increase compared to September last year, and Tradeweb a total trading volume in September of US$56.1 trillion and ADV of US$2.63 trillion, an increase of 68.3% YoY. Similarly, Trumid saw an ADV of US$6.8 billion in September, up 78% year-over-year and 37% month-over-month.
MarketAxess
MarketAxess saw its total average daily volume (ADV) in September hit US$45.2 billion, an increase of 52% compared to the same period last year.
The firm said the “strong” results were driven by record total credit ADV of US$16.5 billion, an increase of 40% year-over-year (YoY), and increase of 24.4% compared to August 2024.
MarketAxess CEO Chris Concannon said, “Strong market volumes and a robust new issue calendar helped drive an increase in the velocity of electronic trading and record levels of trading activity in September across our platform.
“Total rates ADV of US$28.7 billion, which increased 60.7% compared to the prior year, and increased 1.2% compared to August 2024 levels, also contributed to the strong performance in September 2024.
“Against this improving market backdrop, in 3Q24 we delivered 27% growth in total credit ADV compared to the prior year, driven by strength in US high-grade (+36%), emerging markets (+19%), Eurobonds (+27%) and municipals (+49%), with record municipal bond estimated market share. We also generated record portfolio trading ADV of US$1.1 billion, which helped drive our portfolio trading quarterly estimated market share of US high-grade and US high-yield TRACE to 20%, its highest quarterly level in 2024.”
In US credit, MarketAxess saw investment grade (IG) ADV of US$8.4 billion in September, a 56.2% increase YoY, and 25.5% increase compared to August 2024. The US IG new issue calendar was US$171 billion in September, up 36.7% compared to the prior year, and up 58.5% compared to August 2024.
US high-yield ADV of US$1.4 billion increased 8.1% compared to the prior year, and increased 11.5% compared to August 2024. The US high-yield new issue calendar was US$36.7 billion in September, the highest level of monthly new issue since September 2021, representing an increase of 56.1% compared to the prior year, and an increase of 102.8% compared to August 2024.
In other credit, emerging markets ADV stood at US$3.7 billion, an increase of 25.1% compared to the prior year, and an increase of 15.8% compared to August 2024. The YoY increase was driven by a 40.4% increase in hard currency ADV, and an 8.7% increase in local currency ADV.
Eurobonds ADV of US$2.4 billion was an increase of 42.3% compared to the prior year, and an increase of 58.5% compared to August 2024.
Municipal bond ADV of $577 million increased 35.1% compared to the prior year, but declined 0.5% compared to August 2024.
The ‘record’ US$1.5 billion in total portfolio trading ADV represented an increase of 191.8% compared to the prior year, and an increase of 52.3% compared to August 2024.
Total rates ADV stood at US$28.7 billion, up 60.7% compared to the prior year, and up 1.2% compared to August 2024.
Tradeweb
Tradeweb reported a total trading volume in September of US$56.1 trillion and ADV of US$2.63 trillion, an increase of 68.3% YoY. The firm also reported its “best quarter ever”.
Excluding the impact of the ICD acquisition, which closed on 1 August 2024, total ADV for the month of September was up 50.3% YoY and total ADV for the third quarter of 2024 was up 42.7% YoY.
Tradeweb’s ADV in September for high-grade fully electronic credit was US$7.8 billion (an 86% increase YoY), while the firm’s ADV for high-yield fully electronic credit was US$856 million (a 36% increase YoY).
Tradeweb CEO Billy Hult said, “Looking at trading volume for the third quarter of 2024, this was our best quarter ever with record volumes in multiple asset classes. Average daily volume for the quarter climbed more than 55% YoY to a record $2.21tn (September ADV was up more than 68% YoY to a record $2.63tn), reflecting strong organic growth and solid contributions from our acquisitions of Yieldbroker, r8fin, and ICD.
“Momentum in credit volumes also remained strong, with record ADV for the quarter in fully electronic US high yield credit and record ADV for September in fully electronic US high grade credit. The third quarter for Tradeweb culminated with broadly strong volumes in September reflecting continued momentum across asset classes.”
In September 2024, Tradeweb reported a US government bond ADV increase of 59.8% YoY to US$232.2 billion. European government bond ADV was up 16.7% YoY to US$49.5 billion.
Record US government bond volumes were supported by record ADV in the firm’s institutional business, as well as strong growth in wholesale and retail volumes. Increased adoption across a wide range of protocols and “favourable” market conditions contributed to the increase in volume.
European government bonds reported strong double-digit volume growth, largely driven by a 30% YoY increase in UK Gilts activity.
Mortgage ADV was up 32.3% YoY to US$240.2 billion.
Fully electronic US credit ADV was up 77% YoY to US$8.6 billion and European credit ADV was up 27.9% YoY to US$2.7 billion.
US credit volumes were driven by increased client adoption, most notably in request-for-quote (RFQ), portfolio trading and Tradeweb AllTrade, Tradeweb noted.
European credit volumes were driven by record volumes in European portfolio trading and increased adoption of RFQ YoY.
Municipal bonds ADV increased by 7.7% YoY to US$385 million.
Credit derivatives ADV was up 49.9% YoY to US$54.9 billion.
Trumid
Trumid reported a ADV of US$6.8 billion in September, up 78% year-over-year and 37% month-over-month.
Each of Trumid’s protocols had ‘record’ client engagement, with a ‘record’ number of counterparties trading each day in Trumid RFQ, Portfolio Trading (PT), Attributed Trading (AT), and Swarms.
Trumid reportedly handled more than a third of all new issue secondary trading volume while increased client activity in high yield trading drove platform ADV, the firm noted. High yield average daily traded volume on Trumid was up around 40% against September 2023.
More than 50% more users traded daily on Trumid compared to a year ago. Around 10,000 bonds traded in September – a new record – and over 1,400 traders transacted on the platform – also a new record.
©Markets Media Europe 2024
