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 October 2023.1
Chris Concannon, CEO of MarketAxess, commented:
“We delivered solid growth in U.S. high-grade, Eurobonds and
municipal bond ADV in October compared to the prior year, and
estimated market volumes registered strong increases versus
September 2023, reflecting an improving market backdrop. We
benefited from an increase in credit spread volatility and ETF
market maker activity, which drove improvement in U.S. high-yield
ADV and estimated market share compared to September. The adoption
of MarketAxess X-Pro continues to expand, with 35% of portfolio
trading volume executed over the platform in October, up from 18%
in third quarter 2023. We believe that X-Pro and our unique
proprietary data are enhancing the client experience for portfolio
trading, and we are well positioned to increase our market share in
the coming quarters, as we continue to roll-out enhanced
functionality.”
Select October 2023 highlights*
- Total credit average daily trading volume (“ADV”) of $12.7
billion, up 1.8% versus the prior year, and up
7.6% versus September 2023 levels.
- U.S. high-grade ADV of $6.0 billion, up
7.8% from the prior year, and up 11.1% versus
September 2023. Estimated market share of 20.3%, up from
19.8% in the prior year, and up from 19.5% in
September 2023. U.S. high-grade estimated market ADV increased
4.9%, compared to the prior year, and was up 6.6%
versus September 2023.
- U.S. high-yield ADV of $1.6 billion, down 19.0%
compared to the prior year, but up 22.4% from September 2023
levels. Estimated market share of 16.7%, down from
21.0% in the prior year, but up from 15.4% in
September 2023. U.S. high-yield estimated market ADV increased
1.7% versus the prior year, and increased 12.7%
compared to September 2023. The decrease in U.S. high-yield ADV and
estimated market share year-over-year was driven principally by
lower levels of credit spread volatility, resulting in a decrease
in ETF market maker activity.
- Emerging markets ADV of $2.8 billion, up 0.3%
from the prior year, consisting of a 16.0% increase in local
markets trading ADV, mostly offset by a 5.7% decline in hard
currency trading ADV; 0.3% increase in emerging markets
estimated market ADV compared to the prior year, and a 6.7%
increase compared to September 2023.2
- 7.4% increase in Eurobonds ADV to $1.7 billion.
Eurobonds estimated market ADV increased 22.8%.3
- Municipal bond ADV of $532 million, up 10.9% from
the prior year, and up 24.6% from September 2023. The
year-over-year increase includes a 17.3% increase in
non-taxable municipal bond ADV. Estimated market share of
5.1%, up from 4.4% in the prior year; estimated
market ADV down 5.8%, compared to the prior year, but up
43.3% compared to September.
- Record $15.1 billion in total portfolio trading volume,
up 15.9% from October 2022, and up 45.9% from
September 2023. Approximately 35% of portfolio trading
volume was executed over MarketAxess X-Pro, our new trading
platform, in October 2023 compared to approximately 18% in
the 3Q23.
- 35% Open Trading® share4 of total credit trading volume,
down from 37% in the prior year, but up from 33% in
September 2023.
- The preliminary FPM1 for total credit for October 2023 was
approximately $153, compared to $155 in 3Q23 and
$164 in October 2022. The decline in total credit FPM in
October compared to the prior year was due principally to a change
in the mix of credit products traded, specifically a decline in
U.S. high-yield trading volume, which is the highest FPM product,
and the lower duration of bonds traded in U.S. high-grade. The
preliminary FPM for total rates was $4.47, compared to
$4.14 in the prior year.
*All comparisons versus October 2022
unless otherwise noted.
Table 1: October 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 Oct-23
21/22
$32,937
$12,655
$5,984
$1,623
$2,800
$1,707
$532
$20,282
$19,863
$419
Oct-22
20/21
$31,982
$12,427
$5,549
$2,004
$2,791
$1,589
$480
$19,555
$19,224
$331
% Change
3%
2%
8%
(19%)
0%
7%
11%
4%
3%
27%
Table 1A: October 2023 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond6
Municipals US Govt.Bonds Oct-23
20.3%
16.7%
19.4%
15.5%
18.8%
5.1%
2.9%
Oct-22
19.8%
21.0%
20.1%
17.8%
20.2%
4.4%
3.4%
Bps Change
+50 bps
(430) bps
(70) bps
(230) bps
(140) bps
+70 bps
(50) bps
Table 1B: Rolling 6-month trading ADV (period ending October
31, 2023, compared to period ending October 31, 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 Oct-23
127/128
$29,393
$11,740
$5,493
$1,414
$2,793
$1,618
$411
$17,652
$17,237
$415
Oct-22
126/126
$32,405
$11,652
$5,393
$1,754
$2,699
$1,397
$388
$20,753
$20,372
$381
% Change
(9%)
1%
2%
(19%)
3%
16%
6%
(15%)
(15%)
9%
Table 1C: Rolling 6-month estimated market share (period
ending October 31, 2023, compared to period ending October 31,
2022)
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond6
Municipals US Govt.Bonds Oct-23
20.1%
16.3%
19.2%
15.7%
18.8%
5.6%
2.9%
Oct-22
21.2%
18.9%
20.6%
16.9%
20.4%
4.4%
3.5%
Bps Change
(110) bps
(260) bps
(140) bps
(120) bps
(160) bps
+120 bps
(60) bps
1
The FPM for total credit and total rates
for October 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 October
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
125,665
$
5,984
$
110,978
$
5,549
13.2
%
7.8
%
High-yield
34,080
1,623
40,076
2,004
(15.0
)
(19.0
)
Emerging markets
58,793
2,800
55,829
2,791
5.3
0.3
Eurobonds
37,559
1,707
33,367
1,589
12.6
7.4
Other credit
11,359
541
9,874
494
15.0
9.5
Total credit trading1
267,456
12,655
250,124
12,427
6.9
1.8
Rates
U.S. government bonds2
417,127
19,863
384,482
19,224
8.5
3.3
Agency and other government bonds1
9,054
419
6,865
331
31.9
26.6
Total rates trading
426,181
20,282
391,347
19,555
8.9
3.7
Total trading
$
693,637
$
32,937
$
641,471
$
31,982
8.1
3.0
Number of U.S. Trading Days3
21
20
Number of U.K. Trading Days4
22
21
Year-to-Date Ended October
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,197,923
$
5,759
$
1,140,773
$
5,484
5.0
%
5.0
%
High-yield
329,854
1,586
354,797
1,706
(7.0
)
(7.0
)
Emerging markets
595,225
2,862
586,792
2,821
1.4
1.5
Eurobonds
367,400
1,750
297,227
1,429
23.6
22.5
Other credit
89,956
432
77,695
374
15.8
15.5
Total credit trading1
2,580,358
12,389
2,457,284
11,814
5.0
4.9
Rates
U.S. government bonds2
3,964,435
19,060
4,632,493
22,272
(14.4
)
(14.4
)
Agency and other government bonds1
89,303
426
81,509
391
9.6
9.0
Total rates trading
4,053,738
19,486
4,714,002
22,663
(14.0
)
(14.0
)
Total trading
$
6,634,096
$
31,875
$
7,171,286
$
34,477
(7.5
)
(7.5
)
Number of U.S. Trading Days3
208
208
Number of U.K. Trading Days4
210
208
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/20231102311864/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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