Conferencia de resultados del T3 de 2026 de Tradeweb (TW): Los ingresos aumentan un 14,9%, Trumid en el foco

Puntos clave

• Tradeweb Markets (TW) informó de unos ingresos en el tercer trimestre de 2026 de 585 millones de dólares, un aumento del 14,9% interanual y del 15,4% a tipo de cambio constante, lo que marca los segundos ingresos trimestrales más altos en la historia de la empresa.
• El margen EBITDA ajustado alcanzó el 54,5%. La dirección afirmó que la empresa puede lograr una expansión del EBITDA ajustado y del margen operativo en comparación con 2025, mientras sigue invirtiendo en tecnología, IA y crecimiento internacional.
• Los ingresos internacionales aumentaron más de un 22% y generaron más del 60% del crecimiento total de los ingresos. Los ingresos procedentes de clientes europeos y asiáticos aumentaron casi un 20% y un 30%, respectivamente.
• El segmento de tipos de interés siguió siendo un importante motor de crecimiento. Los ingresos por swaps globales aumentaron un 26%, mientras que los ingresos por Bonos del Tesoro de EE. UU. crecieron más de un 15% a medida que la cuota de mercado aumentó 160 puntos básicos hasta el 23,6%.
• Tradeweb acordó adquirir Trumid, con 1.890 millones de dólares de contraprestación en efectivo previstos al cierre. La dirección considera las nuevas emisiones como un punto de entrada para los ingresos por transacciones a lo largo de todo el ciclo de vida de los bonos, respaldado por la base de clientes de fondos de cobertura y sistemáticos de Trumid.
• El impulso a principios del cuarto trimestre se mantuvo fuerte: a falta de dos días de negociación a finales de octubre, los ingresos diarios medios aumentaron un 26% interanual, según la dirección.

Datos financieros clave

Tradeweb generó más de 1.700 millones de dólares de ingresos durante los primeros nueve meses de 2026, superando sus ingresos de todo 2024. Aproximadamente el 44% de los ingresos del Q3 provino de clientes internacionales, mientras que alrededor del 30% de la base de ingresos está denominada en monedas distintas del dólar estadounidense.

Desempeño operativo y del negocio

Tipos de interés

Los ingresos por bonos del Tesoro de EE. UU. aumentaron más del 15%, impulsados por un aumento de la cuota de mercado hasta el 23,6%. Los ingresos institucionales por bonos del Tesoro de EE. UU. aumentaron casi un 20%, y Tradeweb mantuvo una cuota superior al 50% en bonos del Tesoro de EE. UU. institucionales electrónicos en relación con su mayor competidor electrónico.

El volumen diario medio en operaciones sobre basis y de múltiples tramos del Tesoro creció más del 50%. El volumen diario medio de múltiples tramos se acercó a 19.000 millones de dólares, con siete trimestres consecutivos de crecimiento secuencial. Los ingresos mayoristas por bonos del Tesoro de EE. UU. también aumentaron más del 15%, liderados por los protocolos de sweep y streaming mayorista.

Los swaps globales generaron sus segundos ingresos trimestrales más altos, aumentando un 26%. La cuota de mercado total aumentó del 21,8% en el Q3 de 2025 al 25,3% en el Q3 de 2026, mientras que la cuota de mercado del riesgo principal avanzó 330 puntos básicos. Los swaps en APAC alcanzaron ingresos récord y el volumen diario medio de RFM aumentó más del 65%.

Crédito

Los ingresos globales por crédito aumentaron un 10%, incluido un 15% de crecimiento en el crédito institucional de EE. UU., 8% de crecimiento en bonos municipales y un 7% de crecimiento en crédito internacional. Los ingresos por crédito minorista cayeron un 1%.

El volumen medio diario de RFQ institucional aumentó más de un 30%, con un crecimiento de dos dígitos en bonos de grado de inversión y de alto rendimiento. El volumen medio diario all-to-all subió más de un 40%, mientras que el volumen de RFQ entre intermediarios se duplicó con creces. Los ingresos por crédito de mercados emergentes aumentaron un 23%.

Tradeweb mejoró su motor AI Price con datos adicionales, modelos de aprendizaje automático actualizados y una fijación de precios intradía más ágil. También continuó desarrollando SNAP+ y ampliando el uso de su asistente basado en IA, Terra.

La adquisición prevista de Trumid tiene como objetivo extender la presencia de Tradeweb a las nuevas emisiones de crédito y profundizar su alcance entre los fondos de cobertura y las firmas sistemáticas. La directiva afirmó que los fondos de cobertura representan actualmente menos del 15% del negocio de crédito de Tradeweb en EE. UU., lo que deja margen para una mayor penetración.

Renta variable y mercados monetarios

Los ingresos por ETF crecieron más de un 25%. El promedio diario de operaciones con ETF aumentó más de un 65%, incluido un crecimiento de más del 70% en ETF europeos y del 20% en ETF de EE. UU. Los ingresos por derivados de renta variable institucional aumentaron más de un 30%.

El crecimiento de los mercados monetarios estuvo liderado por los repos globales e ICD. Los ingresos por datos de mercado aumentaron casi un 20%, impulsados por el contrato de datos de mercado de Tradeweb con LSEG.

Previsiones de la directiva

Tradeweb elevó sus previsiones de gastos ajustados para 2026 a 1.155-1.175 millones de dólares y afirmó que el gasto tendía hacia el punto medio. La directiva prevé una expansión del EBITDA ajustado y del margen operativo con respecto a 2025 en cualquiera de los dos extremos de ese rango, aunque se espera que la mejora del margen incremental sea más moderada que el año pasado.

Las prioridades de inversión incluyen los mercados de frontera, la electronificación en Asia y los mercados emergentes, las iniciativas de IA, la infraestructura de datos y las relaciones con los clientes.

La directiva prevé que los otros ingresos del cuarto trimestre disminuyan en un porcentaje de un solo dígito bajo con respecto al tercer trimestre, en parte porque las comisiones de los supervalidadores deberían moderarse a medida que validadores adicionales se unan a la red Canton. Se espera que los honorarios profesionales aumenten ligeramente con respecto al tercer trimestre.

Riesgos y factores a vigilar

• La directiva enfatizó que el crecimiento de la renta fija no es lineal y puede verse afectado por cambios en la volatilidad, las emisiones, los tipos de interés y el comportamiento de los clientes.
• Los costes ajustados de tecnología y comunicaciones aumentaron un 31,8%, incluidos aproximadamente 4,5 millones de dólares relacionados con la aceleración de la inversión en IA y los mayores costes de datos de referencia. Los honorarios profesionales aumentaron un 38,8%.
• Las comisiones promedio por millón disminuyeron un 10,5% en los swaps a largo plazo, debido principalmente a una mayor actividad de compresión y a una menor duración. Las comisiones por millón en crédito al contado cayeron un 10,6% debido a que la actividad se desplazó hacia el portfolio trading con comisiones más bajas y se alejó del crédito municipal y minorista.
• La transacción con Trumid sigue sujeta al cierre. Tradeweb prevé pagar 1.890 millones de dólares en efectivo una vez completada.
• Otros ingresos siguen siendo variables porque dependen de factores como el valor de las monedas Canton, la participación de los validadores y los trabajos tecnológicos periódicos para clientes minoristas.

Aspectos destacados del turno de preguntas y respuestas con analistas

La directiva describió a Trumid principalmente como una oportunidad de ingresos por transacciones. Las nuevas emisiones pueden atraer la atención del mercado y de los clientes, mientras que sus datos podrían reforzar AI Price y SNAP+. Tradeweb planea en última instancia conectar protocolos como Swarms, Sweep y RFQ en un único flujo de trabajo.

En cuanto a la franquicia de swaps, la directiva citó su cobertura de 28 divisas, su infraestructura regulada y la conectividad con las cámaras de compensación como ventajas competitivas clave. Tradeweb estimó que posee el 70%-80% del mercado de swaps electrónicos, al tiempo que destacó la necesidad de mantener la inversión y la innovación.

La directora financiera, Sara Furber, afirmó que un aumento de 100 puntos básicos en los tipos reduciría normalmente las comisiones por millón de los swaps en aproximadamente un 4%-5%, en igualdad de condiciones. Una extensión de un año en la duración del swap podría aumentar las comisiones por millón aproximadamente un 6%-8%; el impacto comparable en crédito sería de alrededor del 3%. Asimismo, señaló que la combinación de negocio y de protocolo sigue siendo el factor determinante más relevante.

La directiva prevé que el crecimiento del volumen continúe hacia 2027 y considera que un entorno potencialmente volátil en los tipos de interés y el crédito es constructivo para la actividad. Sin embargo, también reconoció la incertidumbre en torno a la inflación, la política de los bancos centrales, la oferta fiscal y las condiciones tras las elecciones de mitad de mandato.

Transcripción completa de la conferencia de resultados

Transcripción completa de la conferencia de resultados

Comentarios de la dirección

Operator

Good morning, and welcome to Tradeweb's Third Quarter 2026 Earnings Conference Call. As a reminder, today's call is being recorded and will be available for playback. To begin, I'll turn the call over to Head of Treasury, FP&A, Investor Relations, Ashley Serrao. Please go ahead.

Ashley Serrao

Thank you, and good morning. Joining me today for the call are our CEO, Billy Hult, who will review our business results and key growth initiatives and our CFO, Sara Furber, who will review our financial results. We intend to use the website as a means of disclosing material, nonpublic information and complying with our disclosure obligations under Regulation FD.

I'd like to remind you that certain statements in this presentation and during the Q&A may relate to future events and expectations, and as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements related to, among other things, our guidance, our future performance, our proposed acquisition of Trumid and the industry and markets in which we operate are forward-looking statements. Actual results may differ materially from these forward-looking statements. Information concerning factors that could cause actual results to differ from forward-looking statements is contained in our earnings release, earnings presentation and periodic reports filed with the SEC.

In addition, on today's call, we will reference certain non-GAAP measures as well as certain market and industry data. Information regarding these non-GAAP measures, including reconciliations to GAAP measures is in our earnings release and earnings presentation. Information regarding market and industry data, including sources is in our earnings presentation.

Now let me turn the call over to Billy.

William Hult

Thanks, Ashley. Good morning, and thank you for joining our third quarter earnings call. We delivered another outstanding quarter generating the second highest quarterly revenue in our history and building on the record performance we achieved in the first half of the year. Through the first 9 months of the year, we've generated over $1.7 billion of revenue surpassing what we delivered in all of 2024. Growth in our markets is never going to be a straight line. volatility changes, issuance changes, interest rates change and client behavior changes. But if you believe that over the next 10 years, global fixed income markets are going to continue to grow and that more of the activity in those markets is going to move from voice and manual workflows towards electronic, automated and increasingly intelligent workflows, then our opportunity is going to compound right along with that.

We are already seeing that opportunity play out in our results. In the third quarter, we set a record for monthly swap share in September, posted our second highest monthly electronic share and investment-grade credit in September, excluding affiliate trades, and reached our second highest U.S. treasury share in August. And yet, as encouraging as that progress is, we believe that we are still early in this journey. The majority of global fixed income activity is done over the phone or chat and the electronification runway in front of us is substantial. We intend to keep investing into our strength organically and inorganically.

Last week, we announced we entered into a definitive agreement to acquire Trumid, which would further expand our presence across the credit markets, specifically in the new issue space that trades mainly over the phone. With this acquisition, we will expand our suite of protocols and expand our client coverage across hedge fund clients.

Diving into the third quarter, strong client activity and a risk-on environment drove 14.9% year-over-year revenue growth on a reported basis. Our international business remains a key priority with revenue growing more than 22% as our strategic initiatives across Europe, APAC and EM continued to pay off. International continued to fire on all cylinders this quarter, contributing more than 60% of over overall revenue growth. Importantly, that strength was broad-based, with revenue from European and Asian clients growing nearly 20% and 30% year-over-year, respectively.

European government bonds achieved record volumes in September and their second best quarter ever, while SNAP+ usage and AIX trading volumes in European credit also reached record levels in September, underscoring the continued adoption of our innovative protocols and solutions.

We continue to balance investing for growth and profitability as adjusted EBITDA margins expanded by 59 basis points relative to the third quarter of 2025.

Turning to Slide 5. We produced the second highest quarterly revenues in our history across rates and credit. Our rates revenues were driven by continued organic growth across swaps and global government bonds. Credit revenues were led by strength across global corporate bonds, municipal bonds and credit derivatives. Equities were led by growth in global ETFs and equity derivatives. Money markets revenue growth was led by global repos and ICD. Finally, market data revenues were up nearly 20% year-over-year, driven by our LSEG market data contract.

Turning to Slide 6. I will provide a brief update on a few of our focus areas: U.S. treasuries and ETFs, and then I will dig deeper into U.S. credit and global interest rate swaps.

Starting with U.S. treasuries, yields climbed through the quarter and September brought real turbulence, the Fed raised rates for the first time since 2023, the 10-year jumped 50 basis points to above 5.2% and intraday volatility hit its highest level of the year. Through it all, we continue to perform strongly. Our third quarter market share increased to 23.6%, up 160 basis points year-over-year, leading to over 15% year-over-year revenue growth.

Institutional U.S. treasuries once again produced another strong quarter with revenues increasing nearly 20% year-over-year, reflecting deeper client engagement and continued adoption of electronic workflows. And -- our competitive position remains strong. We continue to have over 50% share in electronic institutional U.S. treasuries versus our largest electronic peer and further widened our share lead year-over-year during the period. We're continuing to build momentum in the basis and multi-leg trades, to large and strategically important workflows that have traditionally remained predominantly voice driven. Combined, average daily volume across these initiatives grew in excess of 50% year-over-year in the third quarter.

We're still early and onboarding clients and dealers across these initiatives, and that's the exciting part because the momentum is already building and we see significant runway from here. Our wholesale U.S. treasury saw revenues grow over 15% led by our sweep and wholesale streaming protocols, Wholesale remains a strategic priority for us, and our opportunity there extends well beyond competing on price alone. By broadening our execution capabilities, introducing new protocols, expanding our liquidity network and deepening client relationships, we're focused on building a more differentiated platform, and we believe that will position us to gain durable market share across the wholesale U.S. treasury market.

Turning to equities. RFQ has traditionally been a high-touch market, and AIX is turning into a no-touch protocol, helping clients trade faster, more efficiently and at scale. We're also bringing the Tradeweb approach to other equity-linked markets that still run largely on phone and chat. We're the only platform offering an electronic solution across U.S., European and Asian convertible bonds, and our new basket trading capability lets clients trade contingently with a dealer on a list of bonds, which is resonating with clients rebalancing portfolios.

Against that backdrop, ETFs posted revenue growth in excess of 25% year-over-year despite a similar market volatility environment. Client engagement continues to increase, and our AIX automation solution continues to be a key differentiator average daily trades were up over 65% year-over-year with over 70% and 20% growth across European ETFs and U.S. ETFs, respectively.

Our efforts to broaden our equity presence beyond our flagship ETF franchise continued to pay off, with institutional equity derivative revenues up over 30% year-over-year.

Looking ahead, the pipeline remains strong as the benefits of our electronic solutions continue to resonate with our clients. We're positioned to capture ETF growth on 2 fronts: the structural expansion of global ETF markets and the pipeline of clients joining us to trade them. We believe the dual exposure sets us apart and it grows more valuable every year.

Turning to global credit on Slide 7. Revenues grew 10% year-over-year, driven by 15% growth in U.S. institutional credit, 8% growth in municipal bonds and 7% growth in international credit. Strength here was partially offset by a 1% year-over-year decline in our retail credit channel.

As I mentioned last week, we continued to see credit as 1 of the largest long-term opportunities across our markets, and our road map remains focused on deepening our position across the protocols our clients use most. In U.S. credit, that starts with RFQ, the protocol where most institutional volumes still trades. Institutional RFQ average daily volume grew over 30% year-over-year, with double-digit growth in both IG and high yield. Excluding the impact of affiliate trades in TRACE, RFQ's share of TRACE reached another quarterly record. We also achieved record block share in U.S. investment grade with block average daily volume up over 30% year-over-year across IG and high yield.

Growth was broad-based across portfolio trading, RFQ and sessions, demonstrating the value of our multi-protocol approach.

Portfolio trading delivered another strong average daily volume with strong double-digit growth across both U.S. and international PT Meanwhile, all trade generated around $246 billion in volume with average daily volume up 20% year-over-year. Our all-to-all average daily volume was up over 40% year-over-year, and our dealer RFQ average daily volume was up over 100% year-over-year.

In September, we enhanced AI price, our automated pricing engine for investment-grade and high-yield corporate bonds, with expanded data inputs, upgraded machine learning models and more responsive intraday pricing. These enhancements aim to reduce the need for manual intervention and give clients greater confidence to route larger trades through AIX. We also continued to build out SNAP+, which uses predictive analytics and proprietary trading data to help clients identify the most appropriate liquidity providers for each trade.

Terra our AI-powered assistant launch last quarter continues to add firms and users with engagement deepening as more firms bring on multiple active users. Clients are currently using tariff for reporting and analytics, and over time, we see it laying the groundwork for workflows where clients can set parameters, select protocols and execute within client-defined guardrails.

Looking ahead, we remain confident in the long-term outlook for Global Credit. In EM, credit revenues grew 23% year-over-year. While electronification in EM credit remains in its early stages, we continue to build on our established global network and broad EM product suite to support growing client adoption.

In European credit, AIX average daily volume reached its second highest monthly level in September building on the electronic spread trading protocol we launched for European credit portfolios last quarter. Together, we believe these initiatives position us well to capture the increased adoption of electronic trading and credit.

Moving to Slide 8. Global swaps delivered its second highest quarterly revenues up 26% year-over-year. The performance was driven by a combination of strong client engagement across our global suite of currencies, just as importantly, our core risk market share, which excludes compression activity and is the best indicator of our underlying franchise reached another record, rising 330 basis points year-over-year.

Total market share moved from 21.8% in 3Q '25 to 25.3% in 3Q '26.

Last quarter, I highlighted that our swaps business is not one monolithic business. When we launched swaps in 2005, we offered 3 currencies, and now we are up to 28 currencies. As rates have gone global, so have our clients, and we follow our clients. In addition to a global currency set, we also have a global client base that includes asset managers, hedge funds and numerous central banks that all have different hedging and trading goals.

Macroeconomic policy was front and center as global government bonds sold off 3 months in a row. In August, every 1 of the 18 10-year benchmarks we track moved higher. By September, the Fed, the ECB, the Bank of Japan and the Reserve Bank of Australia had all raised rates, while the Bank of England laid out a multiyear plan to shrink its balance sheet.

Volatility didn't pick up in only 1 corner of the market either, it rose across global markets. In September, intraday volatility in dollar, euro and sterling swaps each jumped roughly 40% from August. When every central bank is moving to its own beat, clients have to manage rate risk in every currency at the same time. Our scaled and growing swaps business saw broad-based growth across developed and emerging markets, with risk trading market share growth accelerating our performance and leading to another strong quarter.

We achieved our second highest revenues across institutional dollar, euro and EM Swaps revenues, and we achieved record revenues across APAC swaps. We continue to make progress across emerging market swaps and our rapidly growing RFM protocol. Our third quarter EM swaps revenues produced another strong growth quarter, while our RFM protocol also saw average daily volume grow by more than 65% year-over-year with adoption picking up.

Looking ahead, we continue to believe the long-term growth potential for swaps remain significant. With just 30% of the cleared swaps market currently electronification, there is substantial runway to digitize workflow alongside our clients. We continue to partner with them to create better workflow solutions across a growing part of the cleared markets and make inroads into the uncleared swaps market.

And with that, let me turn it over to Sarah to discuss our financials in more detail.

Sara Furber

Thanks, Billy, and good morning. As I go through the numbers, all comparisons will be to the prior year period, unless otherwise noted. Slide 9 provides a summary of our quarterly earnings performance. As Billy recapped earlier, this quarter, we saw our second highest revenues of $585 million that were up 14.9% year-on-year on a reported basis and 15.4% on a constant currency basis given the weakening dollar. We derived approximately 44% of our third quarter revenues from international clients, and recall that approximately 30% of our revenue base is denominated in currencies other than dollars, predominantly in euros.

Total trading revenues increased 15%, comprised of 18% variable trading revenue growth and 4% growth across fixed trading revenues. Rates fixed revenue growth was driven by the addition of dealers to our mortgage, swaps and U.S. government bond platform as well as existing dealers opting for higher fixed fee plans and some increases in minimum B floors.

Credit fixed revenue declined slightly due to a small dealer stepping away from the credit market. Money markets fixed revenue increased due to a dealer moving from a variable to fixed fee plan. Other revenues of $7.6 million for the third quarter decreased 17% year-over-year, driven by lower super validator fees associated with our commercial relationship with the Canton network, along with a decline in revenue tied to periodic technology enhancements performed for our retail clients. As a reminder, our other revenue line will remain variable from quarter-to-quarter, reflecting fluctuations in a number of factors, including the number of Canton coins earned, the value of Canton coins, the number of super validators in the network and periodic technology enhancements for retail clients.

For modeling purposes, we believe fourth quarter other revenues will be down low single digits relative to the third quarter. The super validator fees are expected to moderate with the addition of new validators to the Canton network, reflecting the continued expansion and strengthening of the network.

Third quarter adjusted EBITDA margin of 54.5% increased by 57 basis points on a reported basis when compared to our 2025 full year margins. Our net interest income of approximately $18 million decreased due to lower interest rate yields despite higher cash balances. Lastly, GAAP results this quarter reflected an $18.7 million net unrealized gain on our strategic investments. As a reminder, this portfolio is designed to invest in emerging areas like digital assets, tokenization and prediction markets, so results here will fluctuate from quarter-to-quarter.

Moving on to fees per million on Slide 10, we provide a highlight of the key trends for the quarter. You can see Slide 16 of the earnings presentation for the full detail regarding our fee per million performance this quarter. For long-tenor swaps, average fees per million were down 10.5%, primarily due to an increase in compression activity and lower duration.

For cash credit, average fees per million decreased 10.6%, primarily due to a mix shift away from higher fee per million munis and retail credit and towards portfolio trading, which carry a lower fee per million.

Slide 11 details our adjusted expenses. At a high level, the scalability and variable nature of our expense base allow us to continue to invest for growth and grow margins. We have maintained a consistent philosophy here. Adjusted expenses for the third quarter increased 13.9% on a reported basis and 15.1% on a constant currency basis. During the third quarter, we continued investments in tech and communications, tech consulting and client relationship development.

Adjusted compensation costs grew 8.8%, primarily due to higher salaries and performance-related compensation along with higher headcount, which was up 6.1% year-over-year.

Technology and communication costs increased 31.8%, primarily due to our continued investments in data strategy and infrastructure and increased software costs, including AI. Approximately $4.5 million of the increase was driven by accelerated investments in AI and by higher reference data costs that began in the fourth quarter of 2025.

Adjusted professional fees grew 38.8%, primarily due to an increase in offshore tech consultants and episodic legal and consulting fees related to strategic initiatives. We expect a slight step-up in the fourth quarter professional fees relative to the third quarter.

Occupancy expenses increased 22.9%, primarily from increased rent due to the move to our new New York City headquarters in September of last year, as well as increased data center rent and expanded capacity.

Adjusted general and administrative costs increased 2.6%, primarily due to a pickup in travel and entertainment, but partially offset by favorable FX movements. Favorable movements in FX resulted in a $2.1 million gain in the third quarter of '26 million versus approximately a $1.1 million loss in the third quarter of '25. Excluding FX, adjusted general and administrative costs grew 21.5%.

Slide 12 details capital management and our guidance. On our cash position and capital return policy. We ended the third quarter in a strong position with approximately $2.1 billion in cash and cash equivalents and free cash flow exceeding $1 billion for the trailing 12 months, representing strong year-over-year growth of approximately 9.7%. Recall, we intend to pay $1.89 billion in cash consideration for Trumid once it closes. We also held approximately 1.6 billion Canton coins with a fair value of approximately $207.5 million.

With this quarter's earnings, the Board declared a quarterly dividend of $0.14 per Class A and Class B shares, up 16.7% year-over-year. And during the quarter, we stepped up our share repurchases, buying back approximately 2 million shares for $210 million as we opportunistically took advantage of the dislocation in our stock price. There was $125 million of aggregate share repurchase authorization remaining as of September 30, and we remain committed to offsetting dilution from equity compensation even at current share price levels.

Turning to guidance for 2026. In light of our strong continued business momentum in the third quarter and October and a potentially more dynamic foreign exchange rate backdrop, we are updating our guidance for adjusted expenses to a range of $1.155 billion to $1.175 billion, and we are currently trending towards the middle of that new range. We believe we can drive adjusted EBITDA and operating margin expansion compared to 2025 at either end of this range. Although we expect the incremental margin expansion to be more muted than last year, as we continue to focus on balancing margin expansion with investing for the future.

Overall, we continue to capitalize on the revenue momentum by increasing investments in product and client relationships as we head into year-end. Specifically, we continue to invest in frontier markets and opportunities to expand electronification across Asia and emerging markets as well as AI-related initiatives.

We also continue to invest in technology that enables us to sustain and build on our leading platform. Some of these investments will take time to scale, but we continue to price innovation and create durable long-term growth opportunities.

Now I'll turn it back to Billy for concluding remarks.

William Hult

Thanks, Sara. Every day since our inception, our focus has been simple, we strive to listen to our clients and build better workflow solutions across the fixed income markets. That focus continues to take us to new highs, and we believe the best is yet to come. A couple of decades ago, people doubted that the broad fixed income markets needed to go electronic. Today, it's hard to imagine it any other way. And electronic trading keeps spreading across rates, credit, equities and money markets, but there's still a lot of runway ahead.

In 2026, big parts of the most important markets in the world still trade like it's 1996. Somewhere right now, a spreadsheet of a potential trade is being sent over e-mail or chat. We believe every protocol we build in every piece of data we provide our clients move more of that business off the phone and chat and on to the screen with better execution outcomes for our clients.

Just as importantly, the definition of macro is changing fast. Clients don't just want to price on a treasury or swap anymore, they want exposure across rates, mortgages, credit in increasingly new areas like crypto and prediction markets. We will always be long innovation and change. We'll keep placing bets with the right strategic partners, and we'll continue to move the global markets forward with the goal of improving the outcomes of our buy-side clients and helping our dealer clients maximize revenues while optimizing profitability.

The same drivers that powered the first 9 months are already carrying into the fourth quarter. With 2 important month-end trading days left in October, which tends to be some of our strongest revenue days, average daily revenue is up 26% year-over-year relative to October 2025. The diversity of our growth remains a theme as we are seeing preliminary strong double-digit growth across rates, credit and equities. Specifically, we are seeing double-digit volume growth year-over-year across global government bonds, mortgages, global interest rate and credit default swaps, U.S. credit, munis and global equities. Our IG share is tracking below and high-yield shares tracking above September levels.

I would like to conclude my remarks by thanking our clients for their business and partnership in the quarter. I want to thank my colleagues for their efforts that contributed to the second highest quarterly revenues in our history.

With that, I will turn it back to Ashley for your questions.

Ashley Serrao

Thanks, Billy. Operator, you can now take our first question.

Operator

[Operator Instructions] Our first question will be coming from the line of Dan Welden of Wells Fargo.

Preguntas y respuestas

Daniel F. Welden

I wanted to touch back on the Trumid revenue opportunities. and specifically around new issues. Should we think about the opportunity as more direct transaction revenue? Or is the larger benefit data and liquidity capture once those bonds start entering secondary trading?

William Hult

Dan, how are you? Thanks for the question. It's a good one, of course. I like the sort of the word opportunity because I think from our perspective, in a very straightforward way, I think we believe strongly that all opportunity comes from the fact that you improved the trading experience of your client. So we start with that, improving the trading experience of your client. And so as we've gone from being kind of when we went public a sort of afterthought in credit to a $500 million global business in credit, I think we've done that by improving the trading experience of our clients. I think that's like an important thing for us to kind of keep in mind as we think about kind of where we're headed.

And obviously, from our perspective, kind of leading with strength, I think the U.S. credit business has been a key engine of that growth. And I think in an important way to make an obvious point, we still see a long runway for electronification. As you know very well, IG at roughly 45% to 50% electronic and high yield much less 25% to 30%, so a big long runway there.

To your question, we think about like modernizing markets from the day a bond is priced through every trade that follows. That's the mentality. So I think -- very specifically, I think it's primarily -- I think we think about this as primarily a transaction revenue story. But as you know very well, you can never separate the data from that. I think that data is a very important part of the story. So obviously, it starts in a new issue window where the price discovery happens before a bond has ever traded. You expand the distribution story connecting many more clients to these protocols across our network. And from there, it carries into secondary. New issue gets the market's attention. That's the way we think about it. New issue gets the market's attention, especially amongst an extremely important client base, which is obviously the hedge funds. And I think Trumid has used that very well to cross-sell into RFQ and take swarms beyond the new issue window, and we feel really good about that.

And then so we use that kind of think about the expression we use that halo effect is a big part, I think, of what makes this business durable. And for sure, we see further ways to expand that halo effect.

Not surprisingly, and you've heard us talk about this, data reinforces all of that. Trumid's new issue data is expected from our perspective to more than strengthen our AI price and our dealer selection tools when we talk about SNAP+. Better data at the end of the day, gives clients the confidence to trade in size with less information leakage. And that means, from our perspective, obviously, more trading in size. And over time, I think the blueprint, the plan will be to connect swarms, sweep, RQ so a client can start a large order in one protocol and work the residual in another, all in the most important thing, which is, one workflow. So think about it kind of this way, Dan. New issue is the extremely important kind of entry point. The full bond life cycle, think about that as the opportunity. And I think, to your question, I think it will primarily show up from our perspective and how you think about us in terms of transaction revenue. And we remain extremely excited about the opportunity, and thanks for the question.

Operator

Next question is coming from the line of Patrick Molly of Piper Sandler.

Patrick Moley

Billy, just maybe following up on the Trumid deal. You've talked about how they bring a hedge fund as a systematic client base that's different from the traditional asset manager flow that your credit business was built on. So how do you see that mix shifting towards quant and systematic flow over time? And does that change how you think about the dealer relationships and the role of all-to-all liquidity on the platform?

William Hult

Patrick, it's a really good question. So we start with like, think about it this way. The combination is going to bring 2 complementary client bases onto 1 platform. And I say things very simply, as you know very well. That's one of the things we like the most about it kind of period. And as we've scaled in U.S. credit, and you kind of heard me, I don't want to say brag, but talk about the stats and the last question, I think we've done that, obviously, by achieving greater penetration with asset managers, probably more so than hedge funds. We've done a great job in the hedge fund world in rates, as you know. But we've been eyeing that kind of hedge fund world in credit. And I think Trumid, without question from our perspective, has built a very loyal following amongst the hedge funds and the systematic firms. I think that's one of the things they've done best.

And so simply, together, we reach across the institutional credit market in a way that neither platform could on its own. And I think that's a pretty strong statement from my perspective. I think we bring breadth, I think in an interesting way, Trumid, with a lot of respect, brings velocity. Hedge funds and systematic players are obviously among the fastest-growing, most important, highest velocity client segments in the credit business. And as a systematic trading and ETFs continue to proliferate, we believe that flow is going to become a bigger part of the market. Bringing all of that onto one platform creates opportunities to improve liquidity period, and better liquidity benefits all of our clients, whether they trade with dealers directly or in the all-to-all world. That's a pretty strong comment.

I think hedge funds contribute less than 15% of our U.S. credit business today, which is why we see significant kind of room to grow there. It doesn't change how we think about our dealer relationships. As you know very well, that's a core part of who we are as a company. I think relationships matter in this market a tremendous amount. And without question, we respect that we hold a super important piece of real estate that exists between the banks and their most important clients. We never kind of lose sight of that.

You've heard me talk about kind of all-to-all trading and how that is, from our perspective, kind of has been a historic table stakes protocol in the market. So we never minimize the importance of those table stakes. But I think at the end of the day, what this combination has me all excited and jazzed about is the opportunity around obviously, risk trades and block trades. And we think the combination of protocols in the market and the types of clients coming onto our platform is going to give us an interesting angle into that.

Appreciate the question, Patrick, and thank you.

Operator

Our next question is coming from the line of Alexander Blostein of Goldman Sachs.

Alexander Blostein

Bill wanted to ask you guys about the rates derivatives franchise. Obviously, it's been and continues to be very important source of growth. We continue to see that in October. I guess one of the dynamics that we've gotten sort of accustomed to in market structure is typically, there is a handful of like larger players competing with each other. Are you guys have been able to sustain your competitive mode here for some time. So curious, what do you think are the key attributes of the moat in that business? And how durable do you think your market share advantages over time?

William Hult

Yes. Good question, Alex. Yes, really strong October. And I know where you're coming from with that question. I think it's important. You've heard me say this. I think I've said this to you in our fireside. Our clients have always had the ability to do business away from us, period. And from my perspective, in a very strong way, I think that has made us a better company. I feel that very strongly. And I think, to your question, I think our strength in swaps rests to start with the fact that we are a true global franchise. And my instinct is that's inherently in a certain way harder to build and copy. As you know, very well swaps is a global kind of interconnected market. Clients manage rate risk across currencies that move off of one another. And so I think what we feel pretty strongly about is the only way to give our clients best-in-class liquidity is to offer the whole market in one place. So we've gone and we built a business where we facilitate swaps trading across, I think it is 28 currencies globally today. And that was -- that's up from 3 when we went into business. Assembling that footprint has been, as you know, very well because you've known us for a long time has been the work of like essentially 2 decades. And so there's a lot of moat kind of around that.

The franchise sits, as you know, on a regulated infrastructure that takes years to put in place a set in the U.S., MTF in Europe. Connectivity to the clearing house is all of like the really important work that gets done. Operating across these regimes as the rules evolve, I say this in a nice way, I think it's complex. And I think that's what lets clients feel comfortable. And on top of that infrastructure sits our kind of client solutions. Together, I think from our perspective, that drives liquidities, dealer stream prices where clients trade, clients trade where the solutions are. This is the kind of cadence of how you build a business. Competition, as I said, has always been like a big feature of this market. We welcome it.

I think our durability think speaks for itself. I think we currently hold an estimated, I think, 70% to 80% of electronic swaps market, 70% to 80% of the electronic swaps market. I think that leadership has held despite, obviously, a well entrenched, as you know, Bloomberg, which was actually first to market like way back when.

I think when you service the clients, you're attentive to the port most important liquidity providers in the market when you have, Alex, like a pretty deep understanding of market structure and the things that matter the most to the participants, you can feel comfortable with your leadership position. But as you know very well, and I say this like very succinctly, like never too comfortable because you have to continue to innovate. You have to continue to invest in your business. We are very, very well aware of the strength of our swaps business, and we'll continue to invest in, engage with our clients and protect that business because it's best-in-class from our perspective. So I appreciate the question.

Operator

Next question is coming from the line of Dan Fannon of Jefferies.

Daniel Fannon

Question on fee per million. I know you don't manage to a number as it's an output of your client behavior. But as we think about higher interest rates, can you provide some context around client behavior and maybe what products might see more or less activity in this backdrop and the subsequent impact that will have on fee per million?

Sara Furber

Sure. it's Sara. Dan, look, overall, a higher interest rate backdrop is generally very constructive for fixed income activity. And within our businesses, and we have maintained a portfolio of them, there are a few general ways to think about the impact on fee per million. But given that it's a portfolio, you're not going to see uniform outcomes. Three big buckets, I think, that are easy to talk about. First, and you know this so well, the most significant driver of fee per million in any scenario, in any rate environment really is business mix. But with a higher rate environment, in particular, we tend to see retail activity really pick up. Retail investors gravitate towards fixed income as yields become more attractive relative to their other alternatives like equities and bank deposits. And for us, retail activity comes in with a higher fee per million than our average. So you see that in places like munis and credit.

On the other side, higher rates tends to meet other parts of the portfolio. And so we tend to see more muted mortgage issuance and refinancing activity, which means our mortgage trading business tend to see less activity, and that happens to be a lower fee per million business. So those are 2 big business activity levels that you tend to see with big moves in rates.

I'd say the second bucket of behavior that we see if you're talking about absolute levels of rates and they don't often move in isolation. But if you just shock the system with an absolute level of rates, you'd see the most impact in swap fee per million. So for a 100-basis-point move for rates going up, you'd see fee per million coming down something like 4% to 5%. The slope of the yield curve, which is a little bit different than the absolute level of rates, matters a lot. And so again, in swaps, which is where it's going to be most sensitive, you have an upward sloping yield curve, you tend to see client activity go out in terms of duration. And so when we see that, if duration goes out as an example, 1 year, you'd see swap fee per million moved by 6% to 8%, typically.

And I highlight swaps because it's probably the most sensitive, but if you were to take credit, you just cut some of those numbers in about half. So if you moved out a year in duration in credit, it moved something like 3%. So that gives you like the second big bucket.

And then I would say the other thing that really moves fee per million, but it's probably a little bit less predictable around what the rate environment is, is client choice around protocol mix. And that's more of a function of what the client's objective is at the time. And so generally speaking, portfolio trading is on the lower end of our protocol mix, things like RFQ, RFM or on the higher end. But I'd make the point that I wouldn't just draw a straight line if there's lower fee per million activity, that's bad for us. I think about things like compression, which we've talked a lot about in prior earnings calls. Compression comes with a low fee per million, but we like that activity. We like things that bring clients onto the platform that increase their engagement with us. And ultimately, that leads to us growing revenue. And so it's not simply the only lever to look at, but I totally take your point given where rates are.

And I'd maybe just highlight one other point that we have seen our ability, given this portfolio of businesses, to grow with high rates, low rates, inverted yield curve and upward sloping yield curve. And I think that's one of the advantages of having the breadth of the portfolio and the type of free cash flow we have, we can be opportunistic about where we allocate capital, and that really -- that builds a pretty durable franchise. But thanks for the question.

Operator

Our next question is coming from the line of Simon Clinch of Rothschild & Company Redburn.

Unknown Analyst

This is Kara Thompson on for Simon Clinch. The last month since the end of the third quarter has seen a surge in bond yields inflation and broader fares over rates in the economy. How is this feeding through to the trading environment across your asset classes? And how do you consider the puts and takes for volume growth over the next year or more?

William Hult

Good question. We'd like to say like we thrive and change, and it's like be careful what you wish for. Obviously, there's a lot of change and a lot of activity A lot of things happening in the market. If we just like you went by so fast. But if you just like rewind the clock for a second. I remember very distinctly I said at our earnings call in the beginning of the year that I was like super app for '26. But I remember going into '26 and almost I think the consensus was in an interesting way that I think we were expecting a dovish Fed with the market pricing cuts. Oops, obviously, that consensus kind of turned out to be wrong. In '26, obviously, as you know very well, like inflation came back big time to the forefront oil fiscal supply. The conflict in the Middle East hit the radar. All of that feeding that. And now, obviously, I think it's all interesting, but the Fed is obviously a hiking regime and the rate volatility backdrop is pretty strong.

I think September was a true test for the market, not just in the U.S., but I'll say this globally. Obviously, if you just think about like the raw numbers, I think the 10-year closed above 5% for the first time since like way back like 2007. And in Europe, like our friends, the bond vigilantes obviously came from France. I can't -- I don't know how to say vigilante in French. But as the budget stalled, the spread to the bonds blew out to levels not seen since like the euro crisis, so like big stuff was happening and continues to happen in our market. Treasury losses, obviously, as you guys know, driven by inflation and supply. I think that has, I think, in a precise way, I think that's going to spread into other parts of fixed income, obviously, kind of including credit.

Some RV and sovereign RB strategies took some losses. I think that risk was deployed pretty quickly. To make an obvious point, September was our kind of best treasury month on record. So kind of thriving amongst this volatility has always been sort of a big part of who we are. And I think a new source of volatility is now beginning to form, obviously, in credit with the hyperscaler credit default swaps under some pressure given some of the massive CapEx being funded with debt, as I described that.

Looking into '27, kind of like the crystal ball is a tricky one. I would say this very clearly, we expect continued volume growth. The macro backdrop in rates is going to be, I think, dictated by a Fed that stays focused to start with on inflation. You have a post midterm election landscape that's going to add some version of uncertainty with rates likely higher for longer, and I'm not an expert, but I think that's something I can say. Continued funding of the AI build-out is going to lead to more speculation, repositioning in credit. This is kind of like activity.

I don't think -- I think we can say the market consensus is that there's going to be a pretty volatile 2027. that's my bet. I think that's Tradeweb's bet. I think we're betting the landscape is going to stay kind of like this. And my instinct is that's a pretty bullish environment for our rates and credit business. So pretty amped up and excited about kind of our opportunity as we hit '27 amongst, obviously, as you know, very well, a lot of moving parts in a complex market environment.

Thank you for the question.

Operator

Our next question is coming from the line of Ken Worthington of JPMorgan.

Kenneth Worthington

We're seeing the likes of Jump Jane, [indiscernible] and Virtu raising or refinancing very large quantities of debt. As we think about their position in rates and particularly in credit, how do you see these increased capital positions changing the role of these firms from just being high turnover to ones taking on longer positions -- the larger positions on balance sheet? And are you seeing their presence in fixed income just getting bigger? Or is it getting bigger at a faster pace as it raises capital? And ultimately, what does this mean for Tradeweb?

William Hult

It's an interesting question because I haven't kind of thought about it exactly the way you asked it, and it's like -- yes, it's right. I think I'll start with this. I think largely achieved through the success, Ken, that we've had in our kind of combination of our ETF business and our wholesale treasury business, I think from our perspective, getting closer to Jump, Jane, Citadel, Virtu, et cetera, given the scope of their ambition in the markets is probably one of the more important evolutions that we've had as a company in terms of servicing the full client base. I think that's been a really important evolution for us.

Obviously, as you know, a private sector intermediation has been and is back in vogue. And I think that's good for our clients, good for the market, tends to be good for Tradeweb. I wouldn't draw necessarily like a perfectly straight line from like a financing transaction to a firm's willingness to inherently wear house more risk. Obviously, firms like JPMorgan, Goldman, Citi and Morgan Stanley have done just an amazing job over the past bunch of years in very complex market warehousing, significant amounts of risk.

I think directionally, though, capital gives these kinds of firms that you're describing ultimately more flexibility to continue to invest in technology, which I think supports larger client relationships that can selectively hold more inventory. I think these are important evolutions that speak to the ambitions of these firms.

I think the reality is, firms can like jump like Jane, like Citadel, et cetera, embrace technology as they look to create broader penetration inside of the markets that we live and breathe in, in a way that fits our eye really well. We saw and we've seen the ambition of Citadel as they've done a pretty strong job creating big market share numbers across a variety of our rates businesses. My instinct is that's going to play out more and more in the credit business where I feel like the client base is continuing to look for more counterparties, more liquidity that plays again more to direct RFQ business, I think, in a fundamentally important way.

As these types of firms continue to make inroads in the businesses that we live in, my instinct is the most important thing around this is that the historic kind of, I used the expression, legacy banks that you know how I use that word, the JPMorgans, the Goldmans, the Morgan Stanleys and the Citis, Bank of Americas, they are, eyes wide open, ready investing in the businesses, protecting their client base, and we're going to have an interesting road that's going to be played out in these businesses. And I think as we think about that competitive landscape and the advent of technology, my instinct is all of this, in the most important way, is a great outcome for the client base and for the transparency and the efficiencies that continue to progress in these markets.

I think the outcome is continued efficiency, continued transparency, which are the exact things that the marketplace wants. So it's going to be a very, very interesting year, to your point, as these nonbank liquidity providers become more ambitious in different ways in the space with a lot to play for.

Operator

Our next question is coming from the line of Jeff Schmitt of William Blair.

Jeffrey Schmitt

Could you update us on your efforts to electronify complex and multi-leg trades and rates? And are these workflows continuing to increase as a percentage of market activity? And what are the biggest barriers to further adoption?

William Hult

Good question, Jeff. We're hitting on like a lot of good topics today. I mean I think technology and market structure change kind of -- and it's certainly like only get you so far. I think from my perspective and from our perspective, I think the real question is almost like how you affect human behavior, and what we're solving for here? So I think this is, I think, one of the fastest-growing parts of our Rates business. If I can kind of get this right, I think multi-leg average daily volume hit like almost $19 billion in the third quarter. That's up, I think, somewhere over 50% year-over-year and 7 straight quarters of sequential growth. That's like a pretty strong statement around the stickiness here.

I think the growth is based in the third quarter, like switches were up, I think, around 60%, curves up 56%. August was a record month with more than $23 billion average daily volume at day. That's like depth not just breadth. And I think we're going to continue to do right. And I think this is like very, very important, Jeff, is to iterate on the offering based on something that I think we do well, which is kind of client and dealer feedback, client and dealer feedback, client and dealer demand.

And so we'll continue to focus on adding more clients, but our current client set is doing roughly 50% kind of more with us now. I think basis, we can say pretty clearly is probably like the next leg $780-ish million average daily volume in the third quarter, that's up like 30-odd percent year-over-year, record activity in June. So these stats are pretty impressive, and they're continuing to grow. Got to keep adding clients off a relatively small base there. So you know my blunt speak. We have kind of work to do. But I think my instinct and the instinct of the management team is that the workflow solution is resonating. And I'm clearly excited about the forward potential there.

So not as clean. It's a good question, not as clean almost as a kind of scoreboard around all of this stuff. But as you know, much of this activity still happens off of screens. Plenty of these clients can still execute these trades almost like one leg at a time. So you don't always get like the full picture around it. big area of focus for us. We have to be and will be a company that ultimately thrives around solving for complexity. Complexity has always been the piece of the market that sometimes can trade voice or off of screens. And that is the exact reason and that is the exact area why this area has our full attention. So as always, I appreciate the question, Jeff. Thanks very much.

Operator

And this does conclude today's Q&A session. I would like to turn the call back to Bill Hult, CEO, for closing remarks.

William Hult

Great. Thank you all very much on a super busy day for joining us this morning. As always, any follow-up questions, please feel free to reach out to Ashley Serrao and the team. Everyone, have a great day. Thank you.

Operator

This concludes today's program. Thank you for joining. You may now disconnect.