Repo average daily volume (ADV) traded on the Tradeweb platform climbed 34.2 per cent year-on-year to US$508.7 billion for December.
The global operator of electronic marketplaces for rates, credit, equities and money markets indicates a shift from the Federal Reserve’s reverse repo facility to money markets.
For rates trades, US government bond ADV was up 39.8 per cent YoY to US$159.5 billion, with European government bond ADV rising 21.5 per cent YoY to US$33.4 billion.
Tradeweb reports that trading in the retail market was driven by higher interest rates. European government bond volumes were supported by sustained rates, market volatility and strong hedge fund activity.
For swaps and swaptions, ADV has grown 80.1 per cent YoY to US$336.5 billion, and total rates derivatives ADV increased by 62.0 per cent to US$513.2 billion.
In credit markets, fully electronic US credit ADV has risen 56.4 per cent YoY to US$5.6 billion. European credit ADV has also increased 26.2 per cent YoY to US$1.6 billion.
