Tradeweb reported repurchase Agreement ADV (average daily volume) was up 3.1% year over year (yoy) to $314.0bn in its money markets segment in December. On a month over month basis, ADV is down from $367 billion in November.
In a statement, Tradeweb noted that the addition of new clients on the platform continued to support growth in global repo activity even as record usage of the Fed’s reverse repo facility weighed on the overall repo market. Retail money markets activity remained pressured by the low interest rate environment.
Total trading volume for December 2021 was $20 trillion, down from $24.2 trillion in November. Average daily volume (ADV) for December was $915.9 billion, an increase of 9.8% yoy, also down from November’s $1.18 trillion.
Lee Olesky, Tradeweb CEO, said in a statement: “Tradeweb facilitated record trading volume in 2021, exceeding $1 trillion in average daily volume and culminating with a record fourth quarter. This was a breakthrough year for us in credit, fueled by Tradeweb’s leadership in electronic portfolio trading and other innovations such as AiEX and sweep. In rates, we became the leading electronic trading platform for US Treasuries, while interest rate volatility around the world contributed to higher volumes in government bonds and swaps globally. Looking across asset classes, trends in passive investing drove strong interest in our ETF and credit platforms, while increased automation played a powerful role in all of our markets. Most importantly, we believe 2021 represented a clear inflection point in the long-term trends towards more electronic trading.”