Second Consecutive Month of Record Total
Trading ADV on Continued Strong Market Volumes
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 October 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“We delivered the second straight month of record total
trading ADV in October, driven by continued robust market
volumes and strength in our international businesses. Our rates
business also generated record ADV in October, surpassing
the previous monthly record set during a period of extreme market
volatility in March 2020.
While we are disappointed with the absolute level of market
share in U.S. high-grade in October, we were pleased to see
record trading volumes, an increase in U.S. high-yield
estimated market share compared to September and an increase in our
preliminary total credit fee capture during the month. Most
importantly, our preliminary total credit variable commission
revenue in October was slightly above September levels. We believe
the decline in our high-grade market share was driven by lower
portfolio trading and a client shift to large block trading in the
market. Large portfolio trades in the market and the mix of
activity across U.S. high-grade TRACE can generate significant
swings in market share without materially impacting revenue
generation.
We are continuing the roll-out of X-Pro to our global client
base and we now have our block solution in the market, which we
believe will be integral to the success of our “high-touch”
strategy.”
Select October 2024 Highlights
- Record total average daily volume (“ADV”) of $46.2
billion increased 40% compared to the prior year, and
increased 2% compared to September 2024. These strong
results were driven by total credit ADV of $15.0 billion,
representing an increase of 19% compared to the prior year,
and a decrease of 9% compared to September 2024.
Record total rates ADV of $31.2 billion, which
increased 54% compared to the prior year, and increased
9% compared to September 2024 levels, also contributed to
the strong performance in October 2024.
- Record total trading volume of $1.0 trillion on
the platform increased 47% compared to the prior year, and
increased 12% compared to September 2024.
U.S. Credit2
- U.S. high-grade ADV of $6.9 billion increased
15% compared to the prior year, but decreased 18%
compared to September 2024. Estimated market ADV increased
30% compared to the prior year, but decreased 10%
compared to September 2024. Estimated market share was
18.0%, down from 20.3% in the prior year, and down
from 19.9% in September 2024. Including the impact of
single-dealer portfolio trades, estimated market share was
18.7%, down from 20.6% in the prior year, and down
from 20.3% in September 2024.
- U.S. high-yield ADV of $1.5 billion decreased 8%
compared to the prior year, but increased 4% compared to
September 2024. Estimated market ADV increased 15% compared
to the prior year, but decreased 5% compared to September
2024. Estimated market share was 13.3%, down from
16.7% in the prior year, but up from 12.1% in
September 2024. Including the impact of single-dealer portfolio
trades, estimated market share was 13.9%, down from
16.9% in the prior year, but up from 12.5% in
September 2024.
Other Credit
- Emerging markets ADV of $3.7 billion increased
33% compared to the prior year, and increased 1%
compared to September 2024. The year-over-year increase was driven
by a 42% increase in hard currency ADV, and a 22%
increase in local currency ADV.
- Eurobonds ADV of $2.3 billion increased 37%
compared to the prior year, but slightly decreased 1%
compared to September 2024.
- Municipal bond ADV of $578 million increased 9%
compared to the prior year, but was in line with September 2024.
Estimated market ADV decreased 33% compared to the prior
year, but increased 12% compared to September 2024.
Estimated market share of 7.9%, up from 4.9% in the
prior year, but down from a record 8.8% in September
2024.3
Strategic Priority Related Protocols & Workflow
Tools
- $1.2 billion in total portfolio trading ADV increased
72% compared to the prior year, but decreased 19%
compared to September 2024.
— Estimated U.S. high-grade and U.S.
high-yield TRACE portfolio trading market ADV decreased 22%
compared to September 2024.
- Our estimated market share of U.S. high-grade and U.S.
high-yield TRACE portfolio trading was 17.9% in October
2024, down from 20.8% in September 2024.
— Portfolio trading represented 10% of
U.S. high-grade and U.S. high-yield TRACE in October 2024, compared
to 12% in September 2024.
- Open Trading ADV of $4.5 billion, increased 17%
compared to the prior year, but decreased 8% compared to
September 2024. Open Trading share4 of total credit trading volume
was 35%, in line with the prior year and September 2024
levels.
- Dealer RFQ ADV of $1.3 billion across all credit
products increased 26% compared to the prior year, but
decreased 8% compared to September 2024.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved ADV of $161 million, up 39% compared to the
prior year, but down 3% compared to September 2024.
Rates
- Record total rates ADV of $31.2 billion, up
54% compared to the prior year, and up 9% compared to
September 2024.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for October 2024 was
approximately $154, up from $153 in the prior year,
and up from $150 in September 2024. The preliminary FPM for
total rates was approximately $4.40, up from $4.30 in
the prior year, and up from $4.18 in September 2024.
Table 1: October 2024 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 Oct-24
22/23
$46,177
$15,022
$6,894
$1,493
$3,718
$2,333
$578
$31,155
$29,927
$1,228
Sep-24
20/21
$45,188
$16,483
$8,414
$1,434
$3,689
$2,359
$577
$28,705
$27,466
$1,239
Oct-23
21/22
$32,937
$12,655
$5,984
$1,623
$2,800
$1,707
$532
$20,282
$19,863
$419
YoY % Change
40%
19%
15%
(8%)
33%
37%
9%
54%
51%
193%
MoM % Change
2%
(9%)
(18%)
4%
1%
(1%)
–
9%
9%
(1%)
Table 1B: October 2024 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Municipals3 US Govt.Bonds3
Oct-24
18.0%
13.3%
16.9%
7.9%
3.2%
Sep-24
19.9%
12.1%
18.2%
8.8%
2.8%
Oct-23
20.3%
16.7%
19.4%
4.9%
2.4%
YoY Bps Change
(230) bps
(340) bps
(250) bps
+300 bps
+80 bps
MoM Bps Change
(190) bps
+120 bps
(130) bps
(90) bps
+40 bps
1 The FPM for total credit and total rates
for October 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 The Company is highlighting the impact
of single-dealer portfolio trading volume on U.S. high-grade and
U.S. high-yield trading volume and estimated market share, where
material, but will continue to exclude single-dealer portfolio
trading activity from each product’s aggregated trading volume and
estimated market share and the total credit FPM calculation.
3 See “General Notes Regarding the Data
Presented” below.
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.
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.
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 the
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 October
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
151,660
$
6,894
$
125,665
$
5,984
21
%
15
%
High-yield
32,848
1,493
34,080
1,623
(4
)
(8
)
Emerging markets
81,797
3,718
58,793
2,800
39
33
Eurobonds
53,667
2,333
37,559
1,707
43
37
Other credit
12,847
584
11,359
541
13
8
Total credit trading1
332,819
15,022
267,456
12,655
24
19
Rates
U.S. government bonds2
658,390
29,927
417,127
19,863
58
51
Agency and other government bonds1
28,097
1,228
9,054
419
210
193
Total rates trading
686,487
31,155
426,181
20,282
61
54
Total trading
$
1,019,306
$
46,177
$
693,637
$
32,937
47
40
Number of U.S. Trading Days3
22
21
Number of U.K. Trading Days4
23
22
Year-to-Date Ended October
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,462,806
$
6,966
$
1,197,923
$
5,759
22
%
21
%
High-yield
284,242
1,354
329,854
1,586
(14
)
(15
)
Emerging markets
726,770
3,461
595,225
2,862
22
21
Eurobonds
433,696
2,046
367,400
1,750
18
17
Other credit
110,118
524
89,956
432
22
21
Total credit trading1
3,017,632
14,351
2,580,358
12,389
17
16
Rates
U.S. government bonds2
4,560,440
21,716
3,964,435
19,060
15
14
Agency and other government bonds1
179,490
848
89,303
426
101
99
Total rates trading
4,739,930
22,564
4,053,738
19,486
17
16
Total trading
$
7,757,562
$
36,915
$
6,634,096
$
31,875
17
16
Number of U.S. Trading Days3
210
208
Number of U.K. Trading Days4
212
210
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/20241104063311/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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