Tradeweb hits record total trading volume in January

Total trading volume for January at Tradeweb reached a record $20 trillion across its electronic marketplaces for rates, credit, equities and money markets.  

Fixed income trading platform provider Tradeweb hit a new record for total trading volume in January, reaching $20 trillion across its rates, credit, equities, and money markets businesses.  

The platform provider also saw its average daily volume (ADV) for the month reach a record $1 trillion, marking a 29.5% increase year over year.

“January 2021 was Tradeweb’s busiest month ever, and the second time in the last twelve months that our monthly ADV topped $1 trillion. We saw increased momentum building on the back of our record Q4 activity, with heavy volumes across asset classes,” said Lee Olesky, chief executive of Tradeweb.  

“While there were many factors contributing to this activity, there is no question that client-driven innovation continues to inspire stronger adoption of our tools and technology.”

Across its equities offering, Tradeweb’s US exchange traded fund (ETF) ADV increased by 57.4% to $5.6 billion in comparison with January 2020, while European ETF ADV increased 83.7% to $3.1 billion.

Elsewhere, US government bond ADV surged by more than 30% to $114.5 billion in comparison with January last year, while European government bond ADV went up by 13.2% to $30.3 billion.

Tradeweb also released its fourth quarter and full year 2020 earnings results, reporting an 18% increase in quarterly gross revenues to $233.1 million, with gross revenue up 15% in 2020 compared to the previous year.

Olesky commented that the strong financial results for the fourth quarter capped off a transformative year for Tradeweb.

“Wherever our clients were working in 2020, we know that electronic trading, digital processing and data helped them navigate unprecedented debt issuance and market volatility,” he added. “Our markets are evolving, and with 2021 volumes off to a strong start we are excited about the role electronic trading continues to play in that evolution.”

The record volumes follow news earlier this week that Tradeweb had entered into a definitive agreement to buy US exchange Nasdaq’s fixed income electronic trading platform for $190 million, in a deal that will help it massively expand into the US treasuries market. 

The central limit order book platform for electronic trading in on-the-run US treasuries will serve Tradeweb’s wholesale sector via Dealerweb.