Average Daily Volume exceeded USD590bn for the month, a 45% increase from June 2017. Average Daily Volume for 2Q18 was USD540bn vs USD380bn for 2Q17. Following were some notable trends within that trading volume:
- Fixed Income and Derivatives Volume Surges Post-MiFID: Volume growth in June was driven by a significant jump in rates derivatives activity, which is up 144% YoY and 100% since just before the start of MiFID II (December 2017). The first 6 months of MiFID II have seen noticeable increases in European Government Bonds, Corporate Bonds, and ETF activity. EGBs are up 45%, European Corporate Bonds up 51%, and European ETFs are up 59% vs 1H17. Over EUR2tn European Government Bond traded in 1H18, the first time this milestone has been reached in a half.
- Repo Roars Back to Pre-Reform Levels: Repo Activity continues to grow at Tradeweb Markets, with volumes up 30% vs June 2017. Activity is back at levels last seen in 2010.
- Chinese Bond Activity Surges: A year on from the Bond Connect launch Chinese bond volume averaged $1 billion per day in June.
- Credit Gains: U.S. Credit volume doubled in the first half of the year and European credit volume up 50%.
- Institutional Trading of ETFs Continues to Grow: European ETF volume up 115% vs. June 2017 and U.S. ETF volume up 65% vs. June 2017.