E-trading in municipal bonds was up 2 percentage points year-on-year (YoY) in Q1 2025, representing 20.6% of the market – beating the previous record of 20.2% set in Q4 2023.
A recent Coalition Greenwich report states that this increase is particularly notable, as e-trading generally peaks in Q4.
“E-trading solutions for munis, in addition to facilitating the execution of more liquid bonds from liquid issuers, do and will continue to offer creative methods of executing those more local trades as well,” stated authors Kevin McPartland and Neha Jain.
“Corporate bond and US Treasury markets have shown that relationships can and do still matter in an electronic world, and munis are heading in that same direction.”
Average daily notional volumes (ADNV) of US$13.5 billion marked a 1% YoY decline, while average daily trade count jumped 3% to 66,480. Compared to year-end 2025 figures, ADNV has fallen by 9.4% and average daily trade count by 5.6%.
READ MORE: US muni market expands, automation trails
Average trade sizes are falling as e-trading continues its shaky rise, and currently sits at its lowest overall level since Q1 2022. For customers they fell by 5% YoY to US$271 thousand, and for interdealer trades they rose 4% to US$99 thousand.
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