Tradeweb: Fixed income and derivatives volume surges post-MiFID
11 July 2018 London
Image: Shutterstock
Fixed income and derivatives volume has surged after the implementation of the second Markets in Financial Instruments Directive (MiFID II), according to new findings by Tradeweb.
Volume growth in June 2018 was driven by a significant jump in rates derivatives activity which is up 144 percent year-on-year and 100 percent since just before the start of MiFID II in December 2017.
The first six months of MiFID II have seen noticeable increases in European government bonds, corporate bonds, and exchange traded funds (ETF) activity, said Tradeweb.
European Corporate Bonds were up 51 percent, and European ETFs were up 59 percent versus the first half of 2017. There was over 鈧�2 trillion-worth of European government bonds traded in the first half of 2018.
The report covers other aspects of Tradeweb's business, such as muni bonds, corporate credit, mortgages, repo and derivatives/swaps.
TradeWeb found that repo in particular had 鈥渞oared back to pre-banking reform鈥濃�攁nd matched figures from before the initiation of Dodd-Frank for one.
The Dodd-Frank Act is a US federal law, signed by President Obama, that places regulation of the financial industry in the hands of the government.
Results from this June showed repo volumes were up 30 percent compared to June 2017.
Tradeweb added: 鈥淥verall, this report shows that June was a huge month for Tradeweb鈥�, with average daily volume (ADV) exceeding $590 billion for the month, a year-on-year increase of 45 percent from June 2017's $400 billion.
Average daily volume for Q2 2018 was $540 billion compared to $380 billion for Q2 2017鈥攁n increase of 42 percent.
The new activity report, which will now be coming out on a monthly basis, aims to give a fresher snapshot of market volume trends.
Volume growth in June 2018 was driven by a significant jump in rates derivatives activity which is up 144 percent year-on-year and 100 percent since just before the start of MiFID II in December 2017.
The first six months of MiFID II have seen noticeable increases in European government bonds, corporate bonds, and exchange traded funds (ETF) activity, said Tradeweb.
European Corporate Bonds were up 51 percent, and European ETFs were up 59 percent versus the first half of 2017. There was over 鈧�2 trillion-worth of European government bonds traded in the first half of 2018.
The report covers other aspects of Tradeweb's business, such as muni bonds, corporate credit, mortgages, repo and derivatives/swaps.
TradeWeb found that repo in particular had 鈥渞oared back to pre-banking reform鈥濃�攁nd matched figures from before the initiation of Dodd-Frank for one.
The Dodd-Frank Act is a US federal law, signed by President Obama, that places regulation of the financial industry in the hands of the government.
Results from this June showed repo volumes were up 30 percent compared to June 2017.
Tradeweb added: 鈥淥verall, this report shows that June was a huge month for Tradeweb鈥�, with average daily volume (ADV) exceeding $590 billion for the month, a year-on-year increase of 45 percent from June 2017's $400 billion.
Average daily volume for Q2 2018 was $540 billion compared to $380 billion for Q2 2017鈥攁n increase of 42 percent.
The new activity report, which will now be coming out on a monthly basis, aims to give a fresher snapshot of market volume trends.
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