Tradeweb sees strong January; adds Jump Trading to European rates market

Dan Barnes

Tradeweb Markets has added Jump Trading to its European government bond marketplace to provide bank participants with streaming liquidity via the new Tradeweb EUGV STAQ application programming interface (API). Jump, a proprietary trading firm, already uses the functionality to stream its actionable prices for US Treasuries on Tradeweb.

Nicola Danese, head of European fixed income at Tradeweb.

“We share Jump’s passion for breakthrough technology innovations, and we are very pleased to welcome them onboard as a specialist liquidity provider for European government bonds,” said Nicola Danese, head of European fixed income at Tradeweb. “Traders will benefit from quicker execution and minimum information footprint, two valuable features particularly in fast markets. Our EUGV STAQ API makes the execution workflow simpler, faster and more efficient for our customers, setting the scene for a new generation of European government bond trading.”

Harry Kent, head of distribution for Europe, Middle East and Africa (EMEA) at Jump Trading.

Harry Kent, head of distribution for Europe, Middle East and Africa (EMEA) at Jump Trading, said “We are excited to be live on Tradeweb as a market maker for European Government bonds providing our price streams to our bank counterparts. Using Tradeweb’s new and innovative EUGV STAQ technology, we are dedicated to being a strong, reliable and efficient source of liquidity in a range of bonds.”

The new EUGV STAQ API allows traders to efficiently execute on these price streams on a name disclosed basis in a single centralised location. They can either trade the price levels during a request-for-quote (RFQ) negotiation manually or build it into an automated trading workflow via Tradeweb’s rules-based AiEX (Automated Intelligent Execution) tool.

A record US$37 billion in average daily volume was executed on Tradeweb’s European Government Bond platform in January 2022, up 22.2% from January 2021. The marketplace provides institutional investors with access to liquidity in bonds from 19 European countries in six currencies (EUR, GBP, DKK, SEK, NOK, CHF). Available trading protocols include RFQ, request-for-market (RFM) and click-to-trade (CTT).

Tradeweb reported a total trading volume of US$22.3 trillion for January 2022 across electronic marketplaces for rates, credit, equities and money markets. Average daily volume (ADV) for the month was US$1.12 trillion, an increase of 7.6% year-on-year (YoY).

US government bond ADV was up 28.4% YoY to US$146.6 billion 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. European government bond ADV was US$37 billion backed by robust issuance, along with heightened rates market volatility.

Mortgage ADV fell 15% YoY to US$211.8 billion as declining issuance and uncertainty over the future of the Federal Reserve’s balance sheet weighed on overall market activity.

Swaps/swaptions ≥ 1-year ADV was up 12.7% YoY to US$163.9billion, and total rates derivatives ADV was up 17.1% YoY to US$307.1billion.

Fully electronic US Credit ADV was up 19.7% YoY to US$3.8billion and European credit ADV was up 2.8% YoY to US$2.1billion with higher volumes across Tradeweb AllTrade protocols, reflecting continued client adoption of our request-for-quote (RFQ) protocol, and electronic portfolio trading.

Credit derivatives ADV was up 37.3% YoY to US$13.1 billion as market-wide volatility boosted volumes overall.

Repurchase agreement (repo) ADV was up 5.5% YoY to US$346.5 billion, with the addition of new clients on the platform continuing to support growth in global repo activity, even as elevated usage of the Federal Reserve’s reverse repo facility weighed on the overall repo market. Retail money markets activity remained pressured by the low interest rate environment.

©Markets Media Europe, 2022