NEW YORK – Tradeweb Markets Inc . (NASDAQ: NASDAQ:), a prominent global operator of electronic marketplaces, reported a record total trading volume for September 2024 of $56.1 trillion, with an average daily volume (ADV) reaching a record $2.63 trillion. This represents a significant year-over-year increase of 68.3%. The third quarter of 2024 also saw record figures, with a total trading volume of $147.5 trillion and an ADV of $2.21 trillion, up 55.3% from the previous year.
The company’s CEO, Billy Hult, attributed the record-breaking performance to strong organic growth and contributions from recent acquisitions, including Yieldbroker, r8fin, and ICD. Tradeweb has seen substantial volume increases in multiple asset classes, notably in U.S. government bonds and fully electronic U.S. high-grade credit.
In the rates category, U.S. government bond ADV surged 59.8% year-over-year to $232.2 billion. European government bond ADV also grew by 16.7% to $49.5 billion, with a notable 30% increase in UK Gilts activity. Mortgage ADV rose 32.3% to $240.2 billion, influenced by market volatility and a pivotal Federal Reserve meeting in September. Swaps and swaptions saw a 73.1% increase in ADV to $576.3 billion, with total rates derivatives ADV up 79.1% to $1.02 trillion.
Credit markets also experienced robust growth, with fully electronic U.S. credit ADV up 77.0% to $8.6 billion and European credit ADV increasing by 27.9% to $2.7 billion. U.S. credit volumes benefitted from greater client adoption of trading protocols, while European credit volumes were buoyed by record European portfolio trading.
Municipal bond ADV advanced by 7.7% to $385 million, outpacing the broader market. Credit derivatives ADV climbed 49.9% to $54.9 billion, propelled by hedge fund and systematic account activity, as well as increased credit volatility.
Equities and money markets also saw growth, with U.S. ETF ADV up 2.7% to $7.6 billion and European ETF ADV jumping 39.8% to $3.1 billion. Repo ADV increased by 28.6% to $681.0 billion, driven by heightened client activity on Tradeweb’s repo trading platform.
The report is based on a press release statement and provides a snapshot of Tradeweb’s performance without speculating on the broader industry impacts or trends. The complete report with detailed information and data can be found on Tradeweb’s website.
In other recent news, Tradeweb Markets Inc. has reported a record-breaking second quarter for 2024, with revenues reaching $405 million, marking a 30.4% increase year-over-year. The company primarily attributes this growth to strong client activity, share gains, and a favorable risk environment. Tradeweb has also announced the addition of Daniel Maguire to its Board of Directors, a move that is expected to leverage his extensive experience in financial services and regulatory frameworks.
Furthermore, the company disclosed a record trading volume of $50.9 trillion for August 2024, with a daily average volume reaching a new high of $2.21 trillion, marking a 53.9% increase year-over-year. This surge in trading activity is partly attributed to the recent integration of ICD, an acquisition completed on August 1, 2024.
In terms of future developments, Tradeweb anticipates the ICD acquisition to contribute around $40 million in revenue over the next five months. It also projects an adjusted EBITDA margin expansion slightly above 2023 levels. These recent developments highlight the company’s commitment to enhancing the client experience and maintaining its leading position in portfolio trading.
InvestingPro Insights
Tradeweb Markets Inc.’s record-breaking performance in September 2024 is reflected in its strong financial metrics and market position. According to InvestingPro data, the company boasts a market capitalization of $29.69 billion, underscoring its significant presence in the electronic marketplace sector.
The company’s impressive revenue growth aligns with its reported volume increases across multiple asset classes. InvestingPro data shows a robust revenue growth of 23.92% over the last twelve months as of Q2 2024, with an even more impressive quarterly revenue growth of 30.39% in Q2 2024. This growth trajectory supports the company’s record-breaking trading volumes mentioned in the article.
Tradeweb’s profitability is also noteworthy, with a high gross profit margin of 94.26% and an operating income margin of 40.18% over the last twelve months. These figures suggest that the company is efficiently converting its record volumes into substantial profits.
InvestingPro Tips highlight that Tradeweb is trading near its 52-week high, with a strong return over the last three months. This aligns with the company’s reported record performance in Q3 2024. Additionally, the tip indicating that Tradeweb has been profitable over the last twelve months corroborates the positive financial results discussed in the article.
For investors seeking a more comprehensive analysis, InvestingPro offers 11 additional tips for Tradeweb Markets Inc., providing a deeper understanding of the company’s financial health and market position.
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