Tradeweb has reported that all ETF asset classes saw net buying in October, according to its most recent monthly trading report.
All three asset classes of ETFs (equities, fixed income, and commodities) experienced net buying during October, reports Tradeweb.
On the platform’s European ETF Marketplace, ‘buys’ in equity and bond ETFs outstripped ‘sells’ by four and three percentage points respectively, as a proportion of the entire platform flow. In the commodities ETF space, ‘buys’ exceeded ‘sells’ by one percentage point.
Equity ETFs dominated trading on the exchange, accounting for 60% of total platform activity, although this level was two percentage points below the previous 12-month rolling average. Fixed income ETF activity amounted to 35% of the total notional volume, beating the previous 12-month rolling average by three percentage points. European and North American equities were the most actively traded categories, followed closely by corporate bonds.
October proved to be another strong month for the platform as total traded volume surpassed €13.7 billion, beating September by more than half a billion euros.
Source: Tradeweb.
Top ten ETFs by traded volume
Equity ETFs dominated October’s most heavily traded ETF list, with the db x-trackers MSCI World Index UCITS ETF (XMWO GR) ranked first. This is the sixth month the fund has featured among the top ten ETFs this year, highlighting the benefit to investors in trading in and out of a portfolio of diversified global developed market equities through a single ticket.
Source: Tradeweb.
Commenting on the new regulatory landscape expected under soon-to-be-implemented MiFID II, Adriano Pace, managing director for equity derivatives at Tradeweb, said: “Despite ETFs not being subject to the new trading obligation under MiFID II, market participants still need to prepare for the advent of pre- and post-trade transparency requirements for transactions executed both on venue and OTC.
“By trading on a regulated platform such as Tradeweb’s MTF, clients can rest assured that all reporting requirements will be taken care of. And if they opt to trade off venue, Tradeweb’s FCA-authorised APA stands ready to offer full-scale comprehensive reporting services.”