Tradeweb reported that in its money markets segment, repurchase Agreement average daily volume (ADV) was up 20.7% year-on-year (yoy) to $379 billion in December 2022, down from November’s $395.6 billion.
Continued client adoption of Tradeweb’s electronic trading solutions drove global repo activity, despite significant volatility in money markets and sustained elevated usage of the Federal Reserve’s reverse repo facility. Retail money markets activity reflected Tradeweb’s second-best month since November 2022 as interest rates remained elevated.
Total trading volume across rates, credit, equities and money markets for December 2022 was at $21.2 trillion and ADV for the month was $1.02 trillion, an increase of 11.6% yoy. For the fourth quarter of 2022, total trading volume was $65.8 trillion and ADV was $1.07 trillion, a decrease of 4.1% yoy.
Billy Hult, Tradeweb CEO, said in a statement: “Despite a complex backdrop of inflation, rates volatility, geopolitical risk and a strong US dollar, we saw an increase of nearly 10% in our average daily volumes year-over-year in 2022. While rates volumes reflected these headwinds in the early part of the fourth quarter, we finished the year with a strong December across our global platform. The growth we experienced was broad-based across our markets, and reflected stronger client engagement in an array of tools and protocols including portfolio trading, request-for-quote (RFQ) and request-for-market (RFM).”