MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a
leading electronic trading platform for fixed-income securities,
today announced trading volume and preliminary variable transaction
fees per million (“FPM”) for July 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“In July, we delivered 12% growth in total credit ADV, driven by
an 18% increase in U.S. high-grade, an 18% increase in Eurobonds, a
7% increase in emerging markets and a 65% increase in Municipal
bonds on record estimated market share. We also generated record
portfolio trading ADV of $972 million. These strong results helped
offset a decline in U.S. high-yield ADV. We are not pleased with
the progression of U.S. credit market share in July, but we are
encouraged by the prospect for potential increases in market
volatility in the coming months. We believe that our strategy,
including the expansion of our portfolio trading offering and
dealer solutions, through the roll-out of MarketAxess X-Pro to our
global client base, will drive future market share expansion in
U.S. credit.”
Select July 2024 highlights*
- Total average daily volume (“ADV”) of $35.1 billion, up
24.1% on strong growth in total credit ADV to $12.8
billion, up 12.3%, and a 32.0% increase in total
rates ADV.
U.S. Credit
- U.S. high-grade ADV of $6.1 billion, up
17.9% on a 26.5% increase in estimated market ADV.
Estimated market share was 18.6%, down from 19.9% in
the prior year.
- U.S. high-yield ADV of $1.1 billion, down 17.7%,
with estimated market share of 12.5%, down from 17.1%
in the prior year. U.S. high-yield estimated market ADV increased
12.4% compared to the prior year.
Other Credit
- Emerging markets ADV of $3.2 billion, up 7.1%,
with strong regional contribution across the LATAM,
EMEA and APAC regions. The increase was driven by a
5.4% increase in hard currency ADV, and a 10.6%
increase in local currency markets ADV.
- Eurobonds ADV of $1.8 billion, up 17.8% compared
to the prior year.
- Municipal bond ADV of $575 million, up 65.2%,
with estimated market ADV up 5.4%. Record estimated
market share of 8.6%, up from 5.5% in the prior
year.2
Strategic Priority Related Protocols & Workflow
Tools
- Record $972 million in portfolio trading ADV, up
178.5% from July 2023, and up 11.9% from June 2024.
Our estimated market share of U.S. high grade and U.S. high-yield
TRACE portfolio trading was 17.2% in July 2024, up from
15.5% in June 2024. Portfolio trading represented
10.6% of U.S. high-grade and U.S. high-yield TRACE in July
2024, compared to 10.4% in June 2024.
- 35% Open Trading share3 of total credit trading volume,
up from 34% in the prior year.
- Dealer RFQ ADV of $1.0 billion across all credit
products increased 9.5%.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved ADV of $116 million, up 11.8% from the prior
year.
Rates
- Total rates ADV of $22.3 billion, up 32.0% versus
the prior year.2
Variable Transaction Fees Per Million (FPM)
- The preliminary FPM1 for total credit for July 2024 was
approximately $143, down from $160 in the prior year,
and down from $148 in June. The decline in total credit
FPM year-over-year was due to protocol and product mix shift,
principally increased portfolio trading and lower levels of U.S.
high-yield activity. The preliminary FPM for total rates was
approximately $3.99, compared to $4.63 in the prior
year.
*All comparisons versus July 2023 unless otherwise noted.
Table 1: July 2024 ADV
Month CREDIT
RATES
$ in millions(unaudited)
US/UK Trading Days4
Total ADV
Total Credit
High-Grade
High-Yield
Emerging Markets
Eurobonds
Municipal Bonds
Total Rates
US Govt. Bonds
Agcy./Other Govt.
Bonds
Jul-24
22/23
$35,135
$12,791
$6,090
$1,128
$3,157
$1,832
$575
$22,344
$21,332
$1,012
Jul-23
20/21
$28,315
$11,393
$5,164
$1,370
$2,947
$1,555
$348
$16,922
$16,530
$392
% Change
24%
12%
18%
(18%)
7%
18%
65%
32%
29%
158%
Table 1A: July 2024 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Municipals2
US Govt. Bonds2
Jul-24
18.6%
12.5%
17.3%
8.6%
2.5%
Jul-23
19.9%
17.1%
19.2%
5.5%
2.4%
Bps Change
(130) bps
(460) bps
(190) bps
+310 bps
+10 bps
1 The FPM for total credit and total rates
for July 2024 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 See “General Notes Regarding the Data
Presented” below.
3 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.
4 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.
General Notes Regarding the Data Presented
Reported MarketAxess volume in all product categories includes
only fully electronic trading volume. MarketAxess trading volumes
and the Financial Industry Regulatory Authority (“FINRA”) Trade
Reporting and Compliance Engine (“TRACE”) reported volumes are
available on the Company’s website at
investor.marketaxess.com/volume.
In addition, for periods beginning with January 2024, the
Company has made changes to the market volume data used to
calculate estimated market share for Municipal and U.S. Government
Bonds. For Municipal Bonds, the Company previously used estimates,
derived from data issued by the Municipal Securities Rule Making
Board (“MSRB”), including estimates for new issuance, commercial
paper and variable-rate trading activity, and excluded these
volumes from the estimated market volume data. While the Company
still uses estimates, the new methodology for identifying and
excluding these volumes from the market volume data is now based on
MSRB “flags” to identify new issuance, commercial paper, and
variable-rate volumes. For U.S. Government Bonds, the previous data
source for estimated market volumes was the Federal Reserve Bank’s
Reported Primary Dealer U.S. Treasury Bond Trading Volumes, which
was reported on a one-week lag. The new source for U.S. Government
Bond trading volumes is FINRA’s U.S. Treasury TRACE data. The
Company believes that the refined methodology used for Municipal
Bonds, and the new data source for U.S. Government Bonds, provides
more accurate measures of estimated market volumes and estimated
market share. Prior comparable periods have been recast
retrospectively for both Municipal and U.S. Government Bonds to
conform to the updated presentation of the data. The new estimated
market volume data is also 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; 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; 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, products or services; our vulnerability to malicious
cyber-attacks and attempted cybersecurity 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;
adverse effects as a result of climate change or other ESG risks
that could affect our reputation; our future capital needs and our
ability to obtain capital when needed; limitations on our operating
flexibility contained in our credit agreement; our exposure to
financial institutions by holding cash in excess of federally
insured limits; 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. Our automated and
algorithmic trading solutions, combined with our integrated and
actionable data offerings, help our clients make faster,
better-informed decisions on when and how to trade on our platform.
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 X
@MarketAxess.
Table 2: Trading Volume Detail
Month Ended July 31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
133,981
$
6,090
$
103,276
$
5,164
29.7
%
17.9
%
High-yield
24,806
1,128
27,401
1,370
(9.5
)
(17.7
)
Emerging markets
69,452
3,157
58,932
2,947
17.9
7.1
Eurobonds
42,137
1,832
32,659
1,555
29.0
17.8
Other credit
12,847
584
7,143
357
79.9
63.6
Total credit trading1
283,223
12,791
229,411
11,393
23.5
12.3
Rates
U.S. government bonds2
469,305
21,332
330,607
16,530
42.0
29.1
Agency and other government bonds1
23,153
1,012
8,090
392
186.2
158.2
Total rates trading
492,458
22,344
338,697
16,922
45.4
32.0
Total trading
$
775,681
$
35,135
$
568,108
$
28,315
36.5
24.1
Number of U.S. Trading Days3
22
20
Number of U.K. Trading Days4
23
21
Year-to-Date Ended July
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
995,419
$
6,818
$
849,230
$
5,897
17.2
%
15.6
%
High-yield
194,433
1,332
241,664
1,678
(19.5
)
(20.6
)
Emerging markets
501,084
3,432
419,030
2,910
19.6
17.9
Eurobonds
299,252
2,036
267,520
1,845
11.9
10.4
Other credit
66,890
458
60,555
420
10.5
9.0
Total credit trading1
2,057,078
14,076
1,837,999
12,750
11.9
10.4
Rates
U.S. government bonds2
2,752,018
18,849
2,762,026
19,181
(0.4
)
(1.7
)
Agency and other government bonds1
103,285
703
61,872
427
66.9
64.6
Total rates trading
2,855,303
19,552
2,823,898
19,608
1.1
(0.3
)
Total trading
$
4,912,381
$
33,628
$
4,661,897
$
32,358
5.4
3.9
Number of U.S. Trading Days3
146
144
Number of U.K. Trading Days4
147
145
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/20240804727167/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
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