Tradeweb Sees a 24.6% Increase in Its Revenues during Q3 2021

Tradeweb Markets, a leading international operator of electronic marketplaces for rates, credit, equities and money markets, published the report of its financial results for the third quarter of 2021. The firm noticed an increase of 24.6% in its quarterly revenues to hit $265.3 million compared to the same period last year.

The average daily volume (ADV) accounted for $964.5 billion, which is up 23.6% from the last year’s figure for the Q3 period, highlighting a record on its ADV in US government bonds. Moreover, Tradeweb witnessed $65.3 million in net income, while its adjusted net income was $94.2 million for the third quarter of the current year.

“Tradeweb’s strong momentum from the first half of the year continued through the third quarter of 2021, producing our second-best revenue quarter ever. Growth in trading volume was broad-based across our markets, with US Credit, global swaps, and US Treasuries leading the way. We were delighted to welcome Sara Furber as our new CFO, helping us navigate Tradeweb’s next phase of growth and development. Finally, we published our inaugural Corporate Sustainability Report to increase transparency for our strong foundation in ESG,” Lee Olesky, Tradeweb Markets CEO, commented on the report.

Increase in Operating Expenses

In terms of operating expenses, the firm reported $179.8 million for the period, which represented an increase of 16.5% compared to $154.3 million seen last year.

Tradeweb provided the following reasons for such an increase: “Higher employee compensation and benefits associated with higher headcount to support growth and higher performance-related compensation; higher depreciation and amortization expense; higher technology and communications expenses primarily due to investments in our data strategy and cybersecurity and clearance and data fees driven by higher trading volumes; and higher general and administrative expenses as we gradually recover from the pandemic, which were partially offset by lower foreign exchange losses.”

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