What proportion of the $55.0 trillion volume and the $2.4 trillion ADV is attributable to the ICD acquisition, and how sustainable is this growth after the acquisition integration?
Answer
1. What share of the July‑2025 figures comes from the ICD acquisition?
| Metric (July 2025) | Reported figure | How the ICD deal is reflected |
|---|---|---|
| Total trading volume | $55.0 trillion | The press release does not give a separate “ICD‑only” volume, but we can infer it from the ADV‑based calculation (see below). |
| Average Daily Volume (ADV) | $2.4 trillion | The overall YoY increase is 30.7 %. When the ICD‑acquisition impact is stripped out, the YoY increase falls to 17.2 %. The extra 13.5 % (30.7 % – 17.2 %) therefore represents the incremental activity generated by the ICD platform. |
Deriving the ICD contribution
Baseline (July 2024) ADV
[
\text{Baseline} = \frac{\$2.4\text{ tn}}{1 + 0.307}
= \frac{\$2.4\text{ tn}}{1.307}
\approx \$1.84\text{ tn}
]ADV that would have existed without ICD (17.2 % YoY growth)
[
\text{ADV}_{\text{‑ICD}} = \$1.84\text{ tn} \times (1 + 0.172)
= \$1.84\text{ tn} \times 1.172
\approx \$2.15\text{ tn}
]ADV attributable to ICD
[
\text{ADV}_{\text{ICD}} = \$2.4\text{ tn} - \$2.15\text{ tn}
\approx \$0.25\text{ tn} \;(\text{≈ $250 billion})
]Proportion of total ADV from ICD
[
\frac{\$0.25\text{ tn}}{\$2.4\text{ tn}} \approx 10.4\%
]Applying the same proportion to total monthly volume (the two metrics move in lock‑step for Tradeweb)
[
\text{ICD‑volume} \approx 10.4\% \times \$55.0\text{ tn}
\approx \$5.7\text{ tn}
]
Result: Roughly 10 % of the $2.4 tn ADV (≈ $250 bn) and 10 % of the $55.0 tn total trading volume (≈ $5.5‑$5.7 tn) can be credited to the ICD acquisition.
Note: The calculation assumes the incremental activity generated by ICD is proportionally reflected in both daily and monthly volume, which is reasonable for a platform‑wide integration that adds new counterparties, products and order‑flow capacity.
2. How sustainable is this growth once the ICD acquisition is fully integrated?
| Factor | What the data show | Implications for post‑integration sustainability |
|---|---|---|
| Organic growth (ex‑ICD) | ADV still rose 17.2 % YoY after stripping out the ICD effect. | A 17 % organic increase is strong for a mature electronic‑trading marketplace. It indicates that Tradeweb’s core platforms (rates, credit, equities, money‑markets) are continuing to capture new liquidity and market share. |
| ICD‑driven boost | ~10 % of July volume is new business from the acquisition. | The ICD contribution is additive, not a replacement of existing volume. As the ICD platform is now part of Tradeweb’s ecosystem, the incremental flow will likely stay on the books, but the growth rate will revert to the organic 17 % pace once the “one‑off” integration surge fades. |
| Market dynamics | • Global interest‑rate volatility in 2024‑25 has heightened demand for rate‑sensitive products. • Continued central‑bank tightening and sovereign‑credit spreads have expanded the credit‑market footprint. • Competition from other electronic venues (e.g., Bloomberg Trade Order Management, MarketAxess) is intensifying. |
The macro environment that has been feeding the 17 % organic rise (higher rate‑trading, more credit‑market activity) is expected to persist through 2025‑26, albeit with a possible moderation if rate‑move cycles settle. |
| Integration timeline | The ICD deal closed 1 Aug 2024; July 2025 is the first full‑month after integration. | The first‑month post‑integration still shows a “fresh‑water” effect (new client onboarding, cross‑sell of existing Tradeweb products). As the two platforms mature together, synergies (e.g., unified order‑routing, expanded data‑feeds) will become incremental cost‑efficiency drivers rather than volume‑drivers. |
| Sustainability outlook | • Short‑term (next 6‑12 months): The extra ~10 % volume from ICD will likely plateau as the acquisition’s “new‑client” pipeline dries up. • Medium‑term (12‑36 months): Growth will be anchored by the 17 % organic rate, supported by continued market volatility and Tradeweb’s product‑expansion (e.g., ESG‑linked credit, tokenised money‑market instruments). • Long‑term (3‑5 years): Assuming no major macro‑shock, the organic trajectory should settle around mid‑teens percent YoY (15‑18 %). The ICD platform will be a stable, recurring contributor rather than a growth engine. |
The overall growth trajectory is sustainable, but the accelerated 30.7 % YoY jump is not repeatable. Future performance will be judged on the ability to sustain the 17 % organic expansion while extracting cost‑efficiencies and cross‑sell opportunities from the ICD platform. |
Bottom‑line view
| Metric | Current (July 2025) | Expected post‑integration trend |
|---|---|---|
| ADV | $2.4 tn (30.7 % YoY) | ~$2.15 tn (≈ 17 % YoY) once the extra ~10 % ICD boost normalises. |
| Total volume | $55.0 tn (30.7 % YoY) | ~$49.5 tn (≈ 17 % YoY) after the ICD surge is absorbed. |
| Growth sustainability | 30.7 % YoY (mix of organic + acquisition) | Organic 17 % YoY is the sustainable baseline; the ICD contribution will become a steady‑state ~10 % of total volume without further acceleration. |
Takeaway: The ICD acquisition added roughly $250 bn of daily trading activity (≈ 10 % of July’s ADV) and about $5.5‑$5.7 tn of monthly volume. This boost is a one‑off uplift that will level off as the newly‑acquired platform is fully assimilated. Tradeweb’s core, organic growth—already running at ~17 % YoY—is the primary engine that will sustain future volume expansion. The acquisition therefore improves the absolute scale of the business, but the growth rate after integration is expected to revert to the strong yet more modest organic pace.