Tradeweb sees credit default swap volume double in March

Dan Barnes

Tradeweb has reported total trading volume for March 2022 of US$28.2 trillion, with US$811 billion in credit default swaps, up from US$330 billion in February 2022 and US$667 billion in March 2021. Overall volumes are typically higher in quarter end months.

Average overall daily volume (ADV) for the month was US$1.23 trillion, an increase of 14% year-over-year (YoY). For the first quarter of 2022, total trading volume was US$73.1trillion and ADV was a reported record US$1.17 trillion, an increase of 10.9% YoY, with preliminary average variable fees per million dollars of volume traded of $2.93.

Reported US government bond ADV was up 30.1% YoY to US$148.6 billion and European government bond ADV was up 22.4% YoY to $37.9 billion. The firm noted that trading in US government bonds was supported by strong client activity in institutional and wholesale markets; the continued momentum of session-based trading and streaming protocols; and the addition of the Nasdaq Fixed Income business. Global government bond trading remained strong amidst heightened rates market volatility as yields continued to rise across developed markets.

Mortgage ADV was down 7.9% YoY to US$185.9billion, as declining issuance and rising yields continued to weigh on overall market activity.

Fully electronic US Credit ADV was up 5.7% YoY to US$3.8 billion and European credit ADV was down 0.7% YoY to US$2.1billion. Tradeweb reported that US and European credit volumes reflected continued client adoption across all Tradeweb protocols, including Tradeweb AllTrade’s request-for-quote (RFQ) and portfolio trading, as declining overall market activity YoY weighed on volumes.

It also noted that that further client adoption of Tradeweb’s Multi-Client Net Spotting tool boosted electronically processed activity.

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