Tradeweb released figures showing repo average daily volume (ADV) in November was up 17.9% year-on-year (y/y) at $828.4 billion, also higher than October’s $790.6 billion. Record global repo trading activity was supported by increased client participation across the platform.
In the US, strong growth was driven by the effects of the Fed’s balance sheet unwind. Additionally, balances in the Fed’s reverse repo facility (RRP) remained close to zero for a majority of the month. In Europe, strong activity continued despite ongoing central bank balance sheet reduction putting some mild upward pressure on European funding levels.
Other Money Markets ADV was flat at $304.4 billion y/y, but significantly higher than October’s $271.3 billion. Record other money markets activity was driven by record ICD money market fund balances, aided by recent debt issuance from several large clients that replenished liquidity after periods of elevated capex, share buybacks, and dividend activity had reduced cash earlier in the year, alongside addition from new clients.