Average daily notional volumes (ADNV) rose by more than a fifth (22%) in US rates last month, reaching US$1.2 trillion.
At the same time, CME Group’s volatility index fell 34% year-on-year (YoY) to 24.36 – and hit an almost five-year low on 15 January.
Amid it all, electronic trading fell by four percentage points YoY to 54%, which Coalition Greenwich attributes to a decline in dealer-to-dealer (D2D) e-trading. Dealer-to-client e-trading remained at a steady 61% of volumes YoY.
“The D2D market is in the midst of a transformation, where trading via direct pricing streams and timed auctions is joining central limit order book activity and voice interdealer brokers as major execution channels. We expect more change here in the year ahead,” report authors Kevin McPartland and Neha Jain observed.
D2D trade sizes in US Treasuries have been increasing fairly steadily since May 2025, and reached US$2.36 million in January. D2C trade sizes, by contrast, have grown at a rockier pace. January’s US$4.48 million is a dip from December’s peak, but continues the overall upward trend seen since late 2023.
©Markets Media Europe 2025
