Tradeweb reports 25.3% rise YoY in repo ADV for July
06 August 2024 US
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Repo average daily volume (ADV) traded on the Tradeweb platform jumped 25.3 per cent year-over-year (YoY) to US$621.8 billion for July.
The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve鈥檚 reverse repo facility to money markets, the firm says.
For rates trades, US government bond ADV was up 47.4 per cent YoY to US$206.1 billion. European government bond ADV rose 16.5 per cent YoY to US$42.9 billion.
According to Tradeweb, US government bond volumes were supported by growth across all client sectors, increased adoption across a range of protocols, and favourable market conditions.
The growth in European government bonds and UK gilts was a result of sustained volatility on the back of political elections in Europe earlier in July, as well as a continued active primary market during the first half of the month.
For swaps and swaptions, ADV was up 38.9 per cent YoY to US$351.5 billion, and total rates derivatives ADV climbed 85.7 per cent YoY to US$671.4 billion.
Tradeweb reports that swaps and swaptions volume was driven by ongoing institutional client activity, strong tailwinds from global political uncertainties, and a 23 per cent YoY increase in compression activity, which carries a lower fee per million.
In credit markets, fully electronic US credit ADV rose 38.3 per cent YoY to US$6.7 billion, while European credit ADV increased by 10.5 per cent YoY to US$2.1 billion.
US and European credit volumes were driven by increased client adoption of portfolio trading and Tradeweb AllTrade.
The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve鈥檚 reverse repo facility to money markets, the firm says.
For rates trades, US government bond ADV was up 47.4 per cent YoY to US$206.1 billion. European government bond ADV rose 16.5 per cent YoY to US$42.9 billion.
According to Tradeweb, US government bond volumes were supported by growth across all client sectors, increased adoption across a range of protocols, and favourable market conditions.
The growth in European government bonds and UK gilts was a result of sustained volatility on the back of political elections in Europe earlier in July, as well as a continued active primary market during the first half of the month.
For swaps and swaptions, ADV was up 38.9 per cent YoY to US$351.5 billion, and total rates derivatives ADV climbed 85.7 per cent YoY to US$671.4 billion.
Tradeweb reports that swaps and swaptions volume was driven by ongoing institutional client activity, strong tailwinds from global political uncertainties, and a 23 per cent YoY increase in compression activity, which carries a lower fee per million.
In credit markets, fully electronic US credit ADV rose 38.3 per cent YoY to US$6.7 billion, while European credit ADV increased by 10.5 per cent YoY to US$2.1 billion.
US and European credit volumes were driven by increased client adoption of portfolio trading and Tradeweb AllTrade.
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