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Tradeweb's High Grade Volume Data Reveals the Changing Landscape For The Fixed Income Market


This post will examine the High Grade Volume data set provided by Tradeweb, which monitors the trading volume of high grade bonds on its electronic platform.

Over the past few years, I have been designing graphics using Tradeweb's Corporate Bond data set, which are available on the Credit ET Volumes Page.


Tradeweb divides its trading volume into two categories: fully electronic trading and electronically processed trading. Fully electronic trading involves trades that are executed entirely through the electronic platform, with no human intervention. In contrast, electronically processed trading refers to trades that are initiated electronically but require some degree of manual intervention.

Firstly, the data shows a clear increase in electronic trading volumes for high grade bonds over the past five years. In January 2018, the combined fully electronic and electronically processed trading volume was $38 million, and by January 2023, it had reached $157million, representing an increase of 310% over the period. This is a staggering growth rate and is indicative of the increasing adoption of electronic trading in the fixed income market.

Secondly, the data reveals that the growth in electronic trading volumes has been driven by the fully electronic trading segment. In January 2018, fully electronic trading accounted for only 40.8% of the total trading volume, but by January 2023, it had increased to 57.3%. Over the same time period electronically processed trading has remained relatively stable.

These trends reflect the changing landscape of fixed income trading, as institutional investors increasingly turn to electronic platforms to trade high grade bonds. The benefits of electronic trading are clear: lower transaction costs, faster execution times, and greater transparency. Electronic platforms also allow investors to access a wider range of bond offerings from different issuers and geographies, which can help to diversify their portfolios and manage risk more effectively.

However, as with any new technology, electronic trading is not without its challenges. One of the main challenges is ensuring that investors receive the best price for their trades. The data from Tradeweb suggests that the adoption of fully electronic trading may be one way to address this challenge, as it eliminates the potential for human error or bias in the pricing process.

Another challenge is the potential for market fragmentation, as different electronic platforms may have different liquidity pools and pricing mechanisms. This can make it difficult for investors to compare prices across different platforms and may lead to inefficiencies in the market. To address this challenge, regulators may need to develop a more standardized framework for electronic trading platforms to ensure greater consistency in the market.

In conclusion, the data from Tradeweb's high grade bond trading volumes provides valuable insights into the changing landscape of fixed income trading.


The increasing adoption of electronic trading, particularly in the fully electronic segment, is transforming the way institutional investors trade high grade bonds.

While electronic trading offers many benefits, it is important to remain vigilant in ensuring that investors receive the best price for their trades and that the market remains efficient and transparent.





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