Tradeweb, a global operator of electronic marketplaces for rates, credit, equities, and money markets, has reported a strong growth in global repo activity for September.
Repo average daily volume (ADV) was US$326.8 billion, representing a 27.8 per cent rise for the month of September compared to September 2020.
The sustained addition of new clients on the platform supported the strong growth in activity, whilst retail money markets activity remained pressured by the low interest rate environment.
Additionally, the U.S. exchange-traded fund (ETF) ADV was up 6.1 per cent YoY to US$5.7 billion. European ETF ADV was up by 35.3 per cent YoY to US$2.2 billion.
This came as a result of the continued growth of institutional clients and elevated market volatility, particularly towards month-end, proved supportive of trading activity.
Tradeweb reports that total trading volume for September was US$21.7 trillion across electronic marketplaces for rates, credit, equities and money markets.
In US credit trading, high grade TRACE market share was 21 per cent, of which 11.9 per cent was traded fully electronically. The US high yield ADV was a record on the platform with a TRACE market share of 9.4 per cent (6.1% fully electronic).
Lee Olesky, Tradeweb CEO, says: “Tradeweb is now the leading marketplace for U.S. Treasuries, with record monthly activity in our institutional and wholesale client sectors. In the third quarter, we continued to capture more market share in U.S. credit led by portfolio trading and electronic request-for-quote, as innovation and momentum helped drive volume gains across our markets."
