Tradeweb hits US$1.2 trillion quarterly volume in Q1 2022

Dan Barnes

Tradeweb Markets, the operator of electronic marketplaces for rates, credit, equities and money markets, has reported financial results for first quarter of 2022, with US$311.5 million of quarterly revenues, a rise of 13.9% compared to the prior year period.

The firm saw US$1.2 trillion average daily volume (ADV) for the quarter, an increase of 10.9% compared to prior year period, with a reported record ADV in many asset classes.

Rates revenues hit US$160.3 million in the first quarter of 2022 up 12.2% compared to Q1 2021 while ADV was up 12.4% with record ADV in US and European government bonds, as well as swaps/swaptions ≥ 1- year.

In credit the firm saw quarterly revenue of US$86.3 million which was up 16.1% compared to the prior year period. Tradeweb also reported that credit ADV was up 22.7% with record ADV in fully electronic US investment grade credit, fully electronic US high yield credit, and European credit.

The company’s equity trading revenues reached US$26.5 million in the first quarter of 2022 up 40.7% on the same quarter last year, with ADV up 32.6%. Tradeweb reported record ADV in US and European ETFs.

Money Market revenues of US$11.5 million in Q1 represented a 6.5% growth compared to the prior year’s Q1 with ADV up 6.4% led by repo volumes.

The firm also saw good growth in market data as revenues hit US$21.4 million in the first quarter of 2022, up 7% with the increase derived largely from increased third party market data fees, Refinitiv market data fees and revenue from its APA reporting service.

Lee Olesky, chairman and CEO of Tradeweb Markets, said, “Tradeweb surpassed US$300 million in quarterly revenue for the first time in our history, showcasing the diversity of our business with strong contributions from rates, credit and equities. Increased rates volatility in the first quarter of 2022 contributed to record volumes in US Treasuries, European government bonds and swaps. Credit delivered a record revenue quarter driven by broad-based product growth and strong corporate bond client engagement across request-for-quote (RFQ), Tradeweb AllTrade, and portfolio trading – which saw a ~60% YoY increase in the number of firms using the tool. In February, our board announced succession plans for the company; I was honoured to be appointed chairman, and I am tremendously excited that my long-time partner Billy Hult will succeed me as CEO on 1 January, 2023. Tradeweb has an outstanding leadership team and we believe we are well positioned for the future.”

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