Tradeweb reports 28.6% rise in repo ADV for September
04 October 2024 US
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Repo average daily volume (ADV) traded on the Tradeweb platform rose by 28.6 per cent year-over-year (YoY) to US$681 billion for September.
The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve’s reverse repo facility to money markets, the firm says.
For rates trades, US government bond ADV jumped 59.8 per cent YoY to US$232.2 billion. European government bond ADV increased by 16.7 per cent YoY to US$49.5 billion.
According to Tradeweb, US government bond volumes were supported by growth in wholesale and retail volumes, increased adoption across a range of protocols, and favourable market conditions.
The growth in European government bonds was a result of a 30 per cent YoY increase in UK gilts activity, the firm adds.
For swaps and swaptions, ADV climbed 73.1 per cent YoY to US$576.3 billion, and total rates derivatives ADV jumped 79.1 per cent YoY to US$1.02 trillion.
Tradeweb reports that swaps and swaptions volume was driven by strong client demand around the September Federal Reserve meeting.
Compression activity, which carries a lower fee per million, grew 95 per cent YoY for September, but Q3 2024 compression activity as a percentage of swaps and swaptions was lower than Q2 2024.
In credit markets, fully electronic US credit ADV was up 77 per cent YoY to US$8.6 billion, while European credit ADV increased by 27.9 per cent YoY to US$2.7 billion.
Increased client adoption drove both US and European credit volumes, says Tradeweb, and European credit volumes were also driven by record volumes in European portfolio trading.
The combination of quantitative tightening, increased collateral supply, and current rates market activity shifted more assets from the Federal Reserve’s reverse repo facility to money markets, the firm says.
For rates trades, US government bond ADV jumped 59.8 per cent YoY to US$232.2 billion. European government bond ADV increased by 16.7 per cent YoY to US$49.5 billion.
According to Tradeweb, US government bond volumes were supported by growth in wholesale and retail volumes, increased adoption across a range of protocols, and favourable market conditions.
The growth in European government bonds was a result of a 30 per cent YoY increase in UK gilts activity, the firm adds.
For swaps and swaptions, ADV climbed 73.1 per cent YoY to US$576.3 billion, and total rates derivatives ADV jumped 79.1 per cent YoY to US$1.02 trillion.
Tradeweb reports that swaps and swaptions volume was driven by strong client demand around the September Federal Reserve meeting.
Compression activity, which carries a lower fee per million, grew 95 per cent YoY for September, but Q3 2024 compression activity as a percentage of swaps and swaptions was lower than Q2 2024.
In credit markets, fully electronic US credit ADV was up 77 per cent YoY to US$8.6 billion, while European credit ADV increased by 27.9 per cent YoY to US$2.7 billion.
Increased client adoption drove both US and European credit volumes, says Tradeweb, and European credit volumes were also driven by record volumes in European portfolio trading.
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