TRADEWEB MARKETS MONTHLY ACTIVITY REPORT APRIL 2021 CONTACT US [email protected] tradeweb.com TRADEWEB MARKETS – ACTIVITY RECAP APRIL 2021 TRADEWEB REPORTS VOLUME RATES CREDIT EQUITIES OF $19.3 TRILLION IN APRIL U.S. government bond ADV was up 7.4% U.S. Credit ADV was up 21.0% YoY to $6.0bn U.S. ETF ADV was up 34.7% YoY to $6.4bn YoY to $95.5bn, and European government and European credit ADV was up 30.7% YoY and European ETF ADV was up 25.8% YoY Average daily volume (ADV) for the month was bond ADV was up 3.8% YoY to $28.4bn. to $1.9bn. to $2.3bn. $896.8 billion (bn)1, an increase of 17.5 percent Tradeweb facilitated strong client activity in Robust client activity, particularly in the U.S., Continued client growth and adoption, streams and session-based trading in U.S. more than offset the decline in overall market particularly in the institutional sector, more (%) year over year (YoY). Average daily trades for Treasuries. Steady global government bond activity. U.S. High Grade TRACE market share than offset declining market volatility. the month totaled 57,837. issuance remained supportive of trading was a record 21.7% (11.7% fully electronic) generally despite waning market volatility. and TRACE High Yield market share was a In U.S. Credit, Tradeweb captured 21.7% of U.S. record 8.9% (4.8% fully electronic). Volumes MONEY MARKETS Mortgage ADV was down 1.2% YoY to High Grade TRACE share and 8.9% of U.S. High remained strong across protocols, with record Repurchase Agreement ADV was up 46.6% $171.8bn. Tradeweb AllTrade activity in Europe. As YoY to $326.4bn. Yield TRACE share, with fully electronic activity of A more measured pace of rates tempered increasing numbers of clients use Multi-Client Global Repo activity grew with the addition 11.7% and 4.8%, respectively—all records for the activity, though Fed purchase commitments Net Spotting and the solution continues to of new dealers and increased support of new remained supportive of the market. scale, the benefit to client workflow, including platform. In addition, U.S. High Yield ADV was a collateral and functionality. Retail money cost efficiencies, drove trading activity on the markets activity remained pressured by the record. Swaps/swaptions ≥ 1-year ADV was down Tradeweb platform during the month. low interest rate environment. 4.2% YoY to $138.5bn, and total rates There is a marked change in client behavior from derivatives ADV was up 10.7% YoY to Credit derivatives ADV was down 23.0% YoY $221.1bn. to $9.8bn. prior to the pandemic as participants integrate Activity in swaps/swaptions ≥ 1-year CDS indices traded in their tightest monthly newer execution protocols and advanced trading decreased as overall market activity eased, range of the year, which muted market volumes technologies that allow for more efficient price though Tradeweb’s share of institutional versus a historically busy April 2020. activity increased. The trends seen in Q1 discovery and enhanced automation into their persisted—continued growth in engagement trading workflows. For example, U.S. Treasury from international clients, faster growth in the request-for-market (RFM) protocol relative volumes saw year-over-year growth, despite to compression, and strong emerging market 1 As recommended by SIFMA, April 2nd was an official Primary Dealer and TRACE data showing overall trading with first trades in Brazilian Real, trading day for U.S. Fixed Income markets—including Colombian Peso and Chilean Peso. U.S. Government bonds, U.S. Credit and USD-denominated market volumes easing. Furthermore, Institutional swaps. Therefore, there were 22 trading days in April for swaps SEF market share grew over 500bp vs April those products, rather than 21. Using 21 trading days would increase ADVs in those products by 4.8%. 2020 according to ClarusFT data. ©2021 Tradeweb Markets LLC. All rights reserved. The information contained herein: (1) is proprietary; (2) may not be copied or 1 redistributed without written permission; (3) and is not offered as investment, tax or legal advice or an offer to buy or sell securities. TRADEWEB MARKETS – SINGLE COUNT APRIL 2021 April 2021 March 2021 April 2020 MoM YoY Asset Class Product ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) ADV ADV Rates Cash 300,212 6,542,226 351,522 8,085,012 294,970 6,165,884 -14.60% 1.78% U.S. Government Bonds 95,542 2,101,923 113,397 2,608,138 88,955 1,868,052 -15.75% 7.41% European Government Bonds 28,383 567,650 30,986 712,679 27,344 546,886 -8.40% 3.80% Mortgages 171,764 3,778,807 201,938 4,644,571 173,879 3,651,451 -14.94% -1.22% Other Government Bonds 4,524 93,846 5,201 119,623 4,792 99,494 -13.02% -5.60% Derivatives 221,131 4,692,290 315,382 7,253,777 199,686 4,111,338 -29.88% 10.74% Swaps/Swaptions ≥ 1Y 138,487 2,906,838 222,073 5,107,690 144,608 2,975,429 -37.64% -4.23% Swaps/Swaptions < 1Y 81,964 1,770,493 92,418 2,125,611 54,683 1,127,604 -11.31% 49.89% Futures 680 14,959 890 20,476 395 8,305 -23.56% 72.07% Total 521,344 11,234,516 666,904 15,338,788 494,657 10,277,221 -21.83% 5.40% Credit Cash 9,383 201,352 10,313 237,188 7,504 156,095 -9.01% 25.03% U.S. High Grade 5,152 113,338 5,544 127,517 4,451 93,472 -7.08% 15.74% U.S. High Yield 881 19,393 857 19,713 534 11,218 2.84% 65.01% European Credit 1,912 38,233 2,111 48,549 1,463 29,260 -9.44% 30.66% Municipal Bonds 188 4,134 201 4,634 290 6,098 -6.75% -35.30% Chinese Bonds 1,131 23,746 1,477 33,960 711 14,923 -23.42% 59.12% Other Credit Bonds 119 2,509 122 2,815 55 1,123 -2.39% 117.06% Derivatives 9,754 206,792 29,030 667,696 12,669 260,118 -66.40% -23.01% Swaps 9,754 206,792 29,030 667,696 12,669 260,118 -66.40% -23.01% Total 19,137 408,144 39,343 904,884 20,173 416,213 -51.36% -5.14% Equities Cash 8,738 181,154 10,086 231,980 6,609 136,939 -13.37% 32.20% U.S. ETFs 6,399 134,369 7,066 162,508 4,749 99,736 -9.44% 34.73% European ETFs 2,339 46,785 3,021 69,472 1,860 37,203 -22.55% 25.76% Derivatives 7,408 154,166 8,732 200,827 3,533 73,824 -15.15% 109.68% Convertibles/Swaps/Options 2,886 59,274 3,414 78,518 473 9,615 -15.45% 510.31% Futures 4,522 94,892 5,318 122,309 3,060 64,209 -14.96% 47.77% Total 16,146 335,321 18,818 432,807 10,143 210,762 -14.20% 59.19% Money Markets Cash 340,177 7,318,787 349,609 8,041,012 237,991 4,956,012 -2.70% 42.94% Repurchase Agreements (Repo) 326,397 7,016,643 334,506 7,693,638 222,683 4,635,507 -2.42% 46.57% Other Money Markets 13,780 302,144 15,103 347,374 15,307 320,505 -8.76% -9.98% Total 340,177 7,318,787 349,609 8,041,012 237,991 4,956,012 -2.70% 42.94% ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) ADV (USD mm) Volume (USD mm) MoM YoY Total 896,804 19,296,768 1,074,674 24,717,492 762,963 15,860,208 -16.55% 17.54% PRODUCT CATEGORIES INCLUDE VOLUMES U.S. Government Bonds: U.S. Treasury bills, notes and bonds, and Treasury Inflation-protected Securities, Chinese Bonds: Chinese Interbank Bond Market (CIBM) instruments – government and corporate – Volumes include Tradeweb, Dealerweb and Tradeweb Direct. Except with respect to U.S. Treasuries, both including when-issued securities. transacted via Bond Connect Company Limited (BCCL) and CIBM Direct. sides of a trade are included in volume totals where the trade is fully-anonymous and a Tradeweb broker- Mortgages: To-be-announced mortgage-backed securities, specified pools, collateralized mortgage Other Credit Bonds: Other developed market (including non-TRACE-reported bonds, preferreds dealer is the matched principal counterparty. Riskless principal trades on Tradeweb Direct are single-count. obligations, commercial mortgage-backed securities, other mortgage derivatives and other and structured notes), developing and emerging market corporate and government bonds. All volumes converted to U.S. Dollars. asset-backed securities. Credit Swaps: Index and single name credit default swaps.ETF: Exchange traded funds (ETFs), ETF leg of Volumes for Mortgages represent current face value at time of trade. Other Government Bonds: Japanese, Canadian, Australian and New Zealand government bonds, covered EFPs, and net asset value trades. Volumes can reflect cancellations and corrections that occur after prior postings. bonds (including Pfandbriefe), other government-guaranteed securities, supranational, sub-sovereign and Convertibles/Swaps/Options: Convertible bonds, equity swaps, call and put strategies, and other equity agency bonds/debentures. Starting in February 2019, Canadian Government Bonds effected on Tradeweb derivatives excluding futures. by non-Canadian clients have been added to these volumes.