Tradeweb records 96% automated ETF trades in Europe
Tradeweb’s European ETF platform routed a record 96% of trades through AiEX in July, with volume of €77.5bn, up about 29% year-on-year.
Tradeweb reported that its Automated Intelligent Execution (AiEX) tool handled 96% of tickets on its European-listed ETF marketplace in July, while AiEX accounted for 32% of the platform’s notional volume. Total traded volume reached €77.5 billion, about 29% higher than in July last year.
The firm said institutional clients used electronic workflows such as AiEX alongside net asset value (NAV) and Market-on-Close functions to access liquidity and execute around benchmark pricing. Adam Gould, Tradeweb’s Global Head of Equities, noted: “Clients are increasingly using a broader range of electronic workflows to execute ETF trades.”
Equity ETFs represented 75% of flow on the European platform in July, six percentage points above the prior 12-month rolling average. Fixed income products made up 20% and commodities 5%. Buys exceeded sells by 16 percentage points in both equity and fixed income ETFs, and by 14 percentage points in commodity products.
Global Equities was the most traded category with €17.5 billion in notional volume, narrowly ahead of North America Equities at €16.9 billion. Emerging Markets, Europe Equities and Government Bonds completed the top five. Share-based products filled most of the top 10 by notional value; the iShares Core EURO STOXX 50 UCITS ETF was top for a second month and the Invesco Physical Gold ETC was the only non-equity product in the list, ranked sixth.
In the US, consolidated ETF notional value traded in July was $90.6 billion, up 45% year-on-year. On Tradeweb’s US platform, AiEX accounted for 58% of transactions and 17% of notional volume. Equities made up 66% of US notional value and fixed income 27%, with the remainder in commodity and specialty ETFs. Gould added that the breadth of activity across equity and fixed income products reflected continued institutional engagement.
The July data show increased use of automated execution tools and expanded use of closing and NAV-based trading options among institutional ETF investors.
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