Record Total Credit Trading Volume of $303.3
Billion; Record Eurobonds Trading Volume of $43.7 Billion and
Record Municipal Bond Trading Volume of $12.6 Billion
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a
leading electronic trading platform for fixed-income securities,
today announced monthly trading volume and preliminary variable
transaction fees per million (“FPM”) for November 2023.1
Chris Concannon, CEO of MarketAxess, commented:
“We delivered record total credit trading volume in November,
driven by strong growth across all credit products. The adoption of
MarketAxess X-Pro continues to expand, with 30% of our portfolio
trading volume executed over the X-Pro platform quarter-to-date, up
from 18% in third quarter 2023. We believe that the continued
improvement in the market backdrop, and the high levels of client
engagement with X-Pro, our unique proprietary data products, and
our automated trading solutions, position us for growth in the
coming quarters.”
Select November 2023 highlights*
- Total credit average daily trading volume (“ADV”) of $14.3
billion, up 9.3% versus the prior year, and up
13.4% versus October 2023 levels.
- U.S. high-grade ADV of $6.5 billion, up
11.2% from the prior year, and up 9.0% versus October
2023. Estimated market share of 20.6%, up slighly from
20.5% in the prior year, and up from 20.3% in October
2023. U.S. high-grade estimated market ADV increased 10.7%,
compared to the prior year, and was up 7.8% versus October
2023.
- U.S. high-yield ADV of $1.9 billion, up 2.5%
compared to the prior year, and up 17.9% from October 2023
levels. Estimated market share of 17.0%, down from
19.3% in the prior year, but up from 16.7% in October
2023. U.S. high-yield estimated market ADV increased 16.5%
versus the prior year, and increased 16.0% compared to
October 2023. The decrease in U.S. high-yield estimated market
share year-over-year was driven principally by lower levels of
credit spread volatility, resulting in an estimated 8.1%
decrease in ETF market maker activity on the platform. ETF market
maker activity increased an estimated 17.1% from October
2023 levels.
- Emerging markets ADV of $3.3 billion, up 7.6%
from the prior year, and up 18.5% from October 2023 levels.
The year-over-year increase was principally due to a 21.8%
increase in local currency trading ADV. The month-over-month
increase was driven by strong growth across both hard and local
currency markets trading ADV. Emerging markets estimated market ADV
increased 15.2%, compared to the prior year, and increased
21.1% compared to October 2023.2
- Eurobonds ADV of $2.0 billion, up 13.7% from the
prior year, and up 16.5% from October 2023. Eurobonds
estimated market ADV increased 31.7% versus the prior year,
and increased 18.7% compared to October 2023.3
- Record municipal bond ADV of $601 million, up
9.9% from the prior year, and up 13.0% from October
2023. Estimated market share of 6.0%, up from 5.3% in
the prior year and 5.1% in October 2023. Estimated market
ADV down 3.6% compared to the prior year, and down
4.1% compared to October 2023.
- AxessIQ, our order and execution workflow solution
designed for wealth management and private banking clients,
achieved record ADV of $157 million, up 63.5% from
the prior year, and up 35.3% from October 2023 levels.
- $13.2 billion in total portfolio trading volume, up
56.7% from November 2022, but down 13.1% from record
levels in October 2023. Quarter-to-date, approximately $7.5
billion, or 29.6%, of our portfolio trading volume was
executed over MarketAxess X-Pro, our new trading platform, compared
to approximately $4.8 billion, or 18.2%, in
3Q23.
- 35% Open Trading® share4 of total credit trading volume,
down from 38% in the prior year, but in line with October
2023 levels.
- Total Rates ADV of $14.5 billion, down 24.1%
versus the prior year, and down 28.5% from October 2023
levels. U.S. Treasury ADV on the platform in November was
negatively impacted by an outage at ICBC, the third-party the
Company was then using for U.S. Treasury settlement services.
- The preliminary FPM1 for total credit for November 2023 was
approximately $157, compared to $163 in the prior
year, and $153 in October 2023. Quarter-to-date, the FPM was
$155, in line with 3Q23 levels. The decline in total credit
FPM compared to the prior year was due principally to product and
protocol mix shift. The increase in total credit FPM compared to
October 2023 was driven by improved U.S. high-grade FPM,
specifically, more favorable Open Trading mix, and the higher
duration of bonds traded, principally on lower bond yields. The
preliminary FPM for total rates was $5.00, compared to
$4.18 in the prior year.
*All comparisons versus November 2022 unless otherwise
noted.
Table 1: November 2023 trading ADV
CREDIT RATES $ in millions(unaudited)
US/UK
Trading Days5 TotalADV TotalCredit
High-Grade High-Yield EmergingMarkets
Eurobonds Municipal Bonds TotalRates US
Govt.Bonds Agcy./OtherGovt. Bonds
Nov-23
21/22
$28,839
$14,347
$6,523
$1,913
$3,317
$1,988
$601
$14,492
$13,992
$500
Nov-22
20/22
$32,228
$13,126
$5,865
$1,866
$3,083
$1,749
$547
$19,102
$18,709
$393
% Change
(11%)
9%
11%
3%
8%
14%
10%
(24%)
(25%)
27%
Table 1A: November 2023 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond6
Municipals US Govt.Bonds
Nov-23
20.6%
17.0%
19.6%
15.3%
18.9%
6.0%
2.0%
Nov-22
20.5%
19.3%
20.2%
17.7%
20.3%
5.3%
2.9%
Bps Change
+10 bps
(230) bps
(60) bps
(240) bps
(140) bps
+70 bps
(90) bps
Table 1B: Rolling 6-month trading ADV (period ending November
30, 2023, compared to period ending November 30, 2022)
CREDIT RATES $ in millions(unaudited)
US/UK
Trading Days5 TotalADV TotalCredit
High-Grade High-Yield EmergingMarkets
Eurobonds Municipal Bonds TotalRates US
Govt.Bonds Agcy./OtherGovt. Bonds
Nov-23
126/130
$29,486
$12,128
$5,618
$1,478
$2,928
$1,649
$444
$17,358
$16,928
$430
Nov-22
125/127
$31,979
$11,840
$5,425
$1,783
$2,747
$1,453
$413
$20,139
$19,779
$360
% Change
(8%)
2%
4%
(17%)
7%
13%
8%
(14%)
(14%)
19%
Table 1C: Rolling 6-month estimated market share (period
ending November 30, 2023, compared to period ending November 30,
2022)
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond6
Municipals US Govt.Bonds
Nov-23
20.3%
16.4%
19.3%
15.7%
18.9%
5.6%
2.7%
Nov-22
21.0%
19.5%
20.6%
17.6%
20.6%
4.8%
3.4%
Bps Change
(70) bps
(310) bps
(130) bps
(190) bps
(170) bps
+80 bps
(70) bps
1
The FPM for total credit and total rates
for November 2023 are preliminary and may be revised in subsequent
updates and public filings. The Company undertakes no obligation to
update any fee information in future press releases.
2
Emerging markets estimated market ADV is
derived by combining MarketAxess TraX emerging markets trading
volume (currently estimated to represent approximately 60% of the
total emerging markets market beginning in September 2023, up from
the earlier estimate of 55%) and FINRA TRACE-reportable emerging
markets trading volume, principally U.S. dollar denominated
corporates.
3
Eurobonds estimated market ADV and
estimated market share are derived from MarketAxess TraX data for
Eurobonds and covered bonds market trading volume, which is
currently estimated to represent approximately 80% of the total
European market beginning in September 2023, up from the previous
estimate of 70%.
4
Open Trading share of total credit trading
volume is derived by taking total Open Trading volume across all
credit products where Open Trading is offered and dividing by total
credit trading volume across all credit products where Open Trading
is offered.
5
The number of U.S. trading days is based
on the SIFMA holiday recommendation calendar and the number of U.K.
trading days is based primarily on the U.K. Bank holiday
schedule.
6
Composite corporate bond estimated market
share is defined as combined estimated market share across U.S.
high-grade (derived from FINRA TRACE reported data), U.S.
high-yield (derived from FINRA TRACE reported data), emerging
markets (derived from FINRA TRACE-reportable emerging markets
volume, principally U.S. dollar denominated corporates) and
Eurobonds (derived from MarketAxess TRAX data which is currently
estimated to represent approximately 70% of the total European
market) product areas.
Reported MarketAxess volume in all product categories
includes only fully electronic trading volume. MarketAxess trading
volumes, TRACE reported volumes and MarketAxess Post-Trade
processed volumes are available on the Company’s website at
investor.marketaxess.com/volume.
Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements,
including statements about the outlook and prospects for Company,
market conditions and industry growth, as well as statements about
the Company’s future financial and operating performance. These and
other statements that relate to future results and events are based
on MarketAxess’ current expectations. The Company’s actual results
in future periods may differ materially from those currently
expected or desired because of a number of risks and uncertainties,
including: global economic, political and market factors; risks
relating to the COVID-19 pandemic, including the possible effects
of the economic conditions worldwide resulting from the COVID-19
pandemic; adverse effects as a result of climate change or other
ESG risks that could affect our reputation; the level of trading
volume transacted on the MarketAxess platform; the rapidly evolving
nature of the electronic financial services industry; the level and
intensity of competition in the fixed-income electronic trading
industry and the pricing pressures that may result; reputational or
credibility risks related to our data products and index business;
the variability of our growth rate; our ability to introduce new
fee plans and our clients’ response; our ability to attract clients
or adapt our technology and marketing strategy to new markets;
risks related to our growing international operations; our
dependence on our broker-dealer clients; the loss of any of our
significant institutional investor clients; our exposure to risks
resulting from non-performance by counterparties to transactions
executed between our clients in which we act as an intermediary in
matched principal trades; risks related to self-clearing; risks
related to sanctions levied against states or individuals that
could expose us to operational or regulatory risks; the effect of
rapid market or technological changes on us and the users of our
technology; our dependence on third-party suppliers for key
products and services; our ability to successfully maintain the
integrity of our trading platform and our response to system
failures, capacity constraints and business interruptions; the
occurrence of design defects, errors, failures or delays with our
platforms; our vulnerability to malicious cyber-attacks and
attempted data security breaches; our actual or perceived failure
to comply with privacy and data protection laws; our ability to
protect our intellectual property rights or technology and defend
against intellectual property infringement or other claims; our
ability to enter into strategic alliances and to acquire other
businesses and successfully integrate them with our business; our
dependence on our management team and our ability to attract and
retain talent; limitations on our flexibility because we operate in
a highly regulated industry; the increasing government regulation
of us and our clients; risks related to the divergence of U.K. and
European Union legal and regulatory requirements following the
U.K.’s exit from the European Union; our exposure to costs and
penalties related to our extensive regulation; our risks of
litigation and securities laws liability; our future capital needs
and our ability to obtain capital when needed; limitations on our
operating flexibility contained in our credit agreement; and other
factors. The Company undertakes no obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise. More information about these and other
factors affecting MarketAxess’ business and prospects is contained
in MarketAxess’ periodic filings with the Securities and Exchange
Commission and can be accessed at www.marketaxess.com.
About MarketAxess
MarketAxess (Nasdaq: MKTX) operates a leading electronic trading
platform that delivers greater trading efficiency, a diversified
pool of liquidity and significant cost savings to institutional
investors and broker-dealers across the global fixed-income
markets. Over 2,000 firms leverage MarketAxess’ patented technology
to efficiently trade fixed-income securities. MarketAxess’
award-winning Open Trading® marketplace is widely regarded as the
preferred all-to-all trading solution in the global credit markets.
Founded in 2000, MarketAxess connects a robust network of market
participants through an advanced full trading lifecycle solution
that includes automated trading solutions, intelligent data and
index products and a range of post-trade services. Learn more at
www.marketaxess.com and on Twitter @MarketAxess.
Table 2: Trading Volume Detail
Month Ended November
30,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
136,980
$
6,523
$
117,303
$
5,865
16.8
%
11.2
%
High-yield
40,173
1,913
37,321
1,866
7.6
2.5
Emerging markets
69,664
3,317
61,667
3,083
13.0
7.6
Eurobonds
43,746
1,988
38,479
1,749
13.7
13.7
Other credit
12,733
606
11,256
563
13.1
7.6
Total credit trading1
303,296
14,347
266,026
13,126
14.0
9.3
Rates
U.S. government bonds2
293,825
13,992
374,182
18,709
(21.5
)
(25.2
)
Agency and other government bonds1
10,800
500
8,255
393
30.8
27.2
Total rates trading
304,625
14,492
382,437
19,102
(20.3
)
(24.1
)
Total trading
$
607,921
$
28,839
$
648,463
$
32,228
(6.3
)
(10.5
)
Number of U.S. Trading Days3
21
20
Number of U.K. Trading Days4
22
22
Year-to-Date Ended November
30,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,334,903
$
5,829
$
1,258,076
$
5,518
6.1
%
5.6
%
High-yield
370,027
1,616
392,118
1,720
(5.6
)
(6.0
)
Emerging markets
664,889
2,903
648,459
2,844
2.5
2.1
Eurobonds
411,146
1,772
335,706
1,460
22.5
21.4
Other credit
102,689
448
88,951
390
15.4
14.9
Total credit trading1
2,883,654
12,568
2,723,310
11,932
5.9
5.3
Rates
U.S. government bonds2
4,258,260
18,595
5,006,675
21,959
(14.9
)
(15.3
)
Agency and other government bonds1
100,103
434
89,764
392
11.5
10.7
Total rates trading
4,358,363
19,029
5,096,439
22,351
(14.5
)
(14.9
)
Total trading
$
7,242,017
$
31,597
$
7,819,749
$
34,283
(7.4
)
(7.8
)
Number of U.S. Trading Days3
229
228
Number of U.K. Trading Days4
232
230
1 Consistent with FINRA TRACE reporting
standards, both sides of trades are included in the Company's
reported volumes when the Company executes trades on a matched
principal basis between two counterparties.
2 Consistent with industry standards, U.S.
government bond trades are single-counted.
3 The number of U.S. trading days is based
on the SIFMA holiday recommendation calendar.
4 The number of U.K. trading days is based
primarily on the U.K. Bank holiday schedule.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231204600526/en/
INVESTOR RELATIONS Stephen Davidson MarketAxess
Holdings Inc. +1 212 813 6313 sdavidson2@marketaxess.com
MEDIA RELATIONS Marisha Mistry MarketAxess
Holdings Inc. +1 917 267 1232 mmistry@marketaxess.com
William McBride RF | Binder +1 917 239 6726
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