Tradeweb reports 31.4% YoY jump in repo ADV for November
05 December 2024 US, Europe
Image: enterdigital/stock.adobe.com
Tradeweb has seen a 31.4 per cent year-over-year (YoY) rise in repo average daily volume (ADV) traded on its platform in November, generating US$702.5 billion.
A continued increase in client activity on the repo trading platform drove elevated global repo activity, according to the global electronic marketplace operator.
“In Europe, repo volumes were driven by clients positioning for year-end, as well as healthy quality liquid asset collateral in the market despite a tightening of repo rates,” says Tradeweb.
In the US, an unwind of the Federal Reserve’s (Fed) balance sheet acted as the driver, and current rates market activity continued to shift more assets from the Fed’s reverse repo facility to money markets.
Retail money markets activity remained robust, adds Tradeweb, as cash continued to flow into the front end as the Fed cut rates in November 2024.
For rates trades, US government bond ADV jumped 50.3 per cent YoY to US$246 billion. European government bond ADV increased by 18.7 per cent YoY to US$53.1 billion.
According to Tradeweb, US government bond volumes were supported by record volume in its institutional business, as well as strong growth in wholesale and retail volumes.
In addition, the platform saw an increased number of clients trading on the platform, alongside heightened market volatility amid the US election and French political uncertainties, which both impacted the monthly figures.
The ADV for swaps and swaptions dropped by 26.2 per cent YoY to US$425.7 billion, with total rates derivatives ADV decreasing by 5.7 per cent YoY to US$748.9 billion.
The activity was down due to a 50 per cent YoY decline in compression activity, says Tradeweb, which carries a lower fee per million.
Additionally, continued volatility in global markets following the US election results and uncertainty surrounding the central bank policy path drove strong risk trading volume in swaps and swaption.
In credit markets, fully electronic US credit ADV was up 20.8 per cent YoY to US$7.4 billion, and European credit ADV grew by 8.7 per cent YoY to US$2.5 billion.
US credit volumes were driven by increased client adoption, says the firm, while European credit volumes were supported by an increase in portfolio trading activity, particularly towards the end of the month.
A continued increase in client activity on the repo trading platform drove elevated global repo activity, according to the global electronic marketplace operator.
“In Europe, repo volumes were driven by clients positioning for year-end, as well as healthy quality liquid asset collateral in the market despite a tightening of repo rates,” says Tradeweb.
In the US, an unwind of the Federal Reserve’s (Fed) balance sheet acted as the driver, and current rates market activity continued to shift more assets from the Fed’s reverse repo facility to money markets.
Retail money markets activity remained robust, adds Tradeweb, as cash continued to flow into the front end as the Fed cut rates in November 2024.
For rates trades, US government bond ADV jumped 50.3 per cent YoY to US$246 billion. European government bond ADV increased by 18.7 per cent YoY to US$53.1 billion.
According to Tradeweb, US government bond volumes were supported by record volume in its institutional business, as well as strong growth in wholesale and retail volumes.
In addition, the platform saw an increased number of clients trading on the platform, alongside heightened market volatility amid the US election and French political uncertainties, which both impacted the monthly figures.
The ADV for swaps and swaptions dropped by 26.2 per cent YoY to US$425.7 billion, with total rates derivatives ADV decreasing by 5.7 per cent YoY to US$748.9 billion.
The activity was down due to a 50 per cent YoY decline in compression activity, says Tradeweb, which carries a lower fee per million.
Additionally, continued volatility in global markets following the US election results and uncertainty surrounding the central bank policy path drove strong risk trading volume in swaps and swaption.
In credit markets, fully electronic US credit ADV was up 20.8 per cent YoY to US$7.4 billion, and European credit ADV grew by 8.7 per cent YoY to US$2.5 billion.
US credit volumes were driven by increased client adoption, says the firm, while European credit volumes were supported by an increase in portfolio trading activity, particularly towards the end of the month.
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