Repo average daily volume (ADV) traded on the Tradeweb platform increased 20.8 per cent year-over-year (YoY) to US$599.2 billion for June 2024.
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, according to Tradeweb.
ADV across all asset classes on the platform jumped 40.9 per cent YoY to US$1.94 trillion for the month of June.
The second quarter of 2024 meant a 48.3 per cent YoY increase in ADV to US$1.92 trillion.
US government bond ADV was up 50.8 per cent YoY to US$210.7 billion. European government bond ADV was also on the rise by 17.4 per cent to US$50.5 billion.
According to Tradeweb, US government bond volumes were supported by growth across all client sectors, and the addition of r8fin contributed positively to wholesale volumes.
Market volatility and sustained primary issuance across Europe helped to drive trading volume in European government bonds, especially gilts, says Tradeweb.
For swaps and swaptions, ADV climbed 56.0 per cent YoY for June to US$437.3 billion. Total rates derivatives ADV also increased by 69.1 per cent to US$782.2 billion.
This was driven by global political uncertainty and pending central bank policy decisions, as well as a 41 per cent increase in compression activity, which carries a lower fee per million, according to the global operator of digital marketplaces for rates, credit, equities, and money markets.
In credit markets, fully electronic US credit ADV was up 41.4 per cent YoY to US$7.0 billion, while European credit ADV was up 24.2 per cent YoY to US$2.5 billion.
Tradeweb captured 18.9 per cent share of fully electronic US high grade TRACE and 8.1 per cent share of fully electronic US high yield TRACE.
Tradeweb CEO Billy Hult says: “Tradeweb in Q2 reported double-digit, YoY volume growth in rates, credit, money markets and equities. We set new records for quarterly ADV in US government bonds, fully electronic US high yield and repo, as well as capturing record share of fully electronic US high-grade credit.
“The second quarter of 2024 culminated with a strong June, led by a 54 per cent YoY increase in rates ADV and continued momentum in credit ADV — up 67 per cent YoY. In addition to volatility across many of our markets, Tradeweb volumes in June and throughout Q2 reflected increased adoption in a range of trading protocols and strong client engagement.”