Record Total Credit Trading ADV of $15.0
billion Driven by Record U.S. High-Grade ADV of $7.5 Billion and
Record Emerging Markets ADV of $3.7 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 January 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“We delivered record total credit ADV of $15.0 billion, driven
by a 20% increase in U.S. high-grade ADV to a record $7.5 billion,
and an 8% increase in emerging markets ADV to a record $3.7
billion, on record levels of hard currency trading volume. The
roll-out of X-Pro is continuing and client engagement is increasing
with approximately 12% of our largest client firms active on the
platform. These solid results helped to offset lower levels of U.S.
high-yield trading activity and estimated share on our platform
driven by continued low levels of credit spread volatility. Our
U.S. high-yield client franchise is strong, with a record 1,300
active client firms. We believe that higher levels of credit spread
volatility will help drive a return to more normal levels of
trading activity in U.S. high-yield in the coming months.”
Select January 2024 highlights*
- Record total credit average daily volume (“ADV”) of
$15.0 billion, up 6.9%.
- Record U.S. high-grade ADV of $7.5
billion, up 20.2%. Estimated market share of
19.1%, down slightly from 19.5% in the prior year.
Including the impact of single-dealer portfolio trades, U.S.
high-grade ADV would have been $7.7 billion, up
22.8%, and estimated market share would have been
19.7%, compared to 19.7% in the prior year.2 U.S.
high-grade estimated market ADV increased 22.6%.
- U.S. high-yield ADV of $1.4 billion, down 25.4%.
Estimated market share of 13.0%, down from 16.8% in
the prior year. U.S. high-yield estimated market ADV decreased
3.8%. We believe the decrease in U.S. high-yield market
share year-over-year was driven, in part, by lower levels of
credit spread volatility, a greater focus on the new issue
calendar by our long-only client segment, and a higher mix
of lower-rated bonds in U.S. high-yield TRACE market volumes,
which are less likely to trade on electronic platforms. Lower
levels of credit spread volatility drove an estimated 34.5%
decrease in ETF market maker client activity on our platform.
- Record emerging markets ADV of $3.7 billion, up
8.2%. The year-over-year increase was driven by
record hard currency trading volume, up 12.4%, and
18.2% growth in local currency markets trading volume.3
- Eurobonds ADV of $1.9 billion, up
0.5%.3
- Municipal bond ADV of $405 million, down 21.5%
with estimated market ADV down 26.1%. Estimated market share
of 6.2%, up from 6.0% in the prior year.3
- Record $18.3 billion in total portfolio trading volume,
up 88.4% from January 2023, and up 35.9% from
December 2023 levels.
- 35% Open Trading® share4 of total credit trading volume,
in line with the prior year.
- Total Rates ADV of $16.9 billion, down
25.1%.
- The preliminary FPM1 for total credit for January 2024 was
approximately $156, down from $160 in the prior year,
but in line with the $156 reported for 4Q23. The decline in
total credit FPM compared to the prior year was due principally to
product and protocol mix shift. The preliminary FPM for total rates
was $5.30, compared to $4.19 in the prior year.
*All comparisons versus January 2023 unless otherwise noted.
Table 1: January 2024 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 Jan-24
21/22
$31,855
$14,964
$7,481
$1,397
$3,726
$1,943
$405
$16,891
$16,406
$485
Jan-23
20/21
$36,561
$14,000
$6,223
$1,873
$3,444
$1,933
$516
$22,561
$22,104
$457
% Change
(13%)
7%
20%
(25%)
8%
1%
(22%)
(25%)
(26%)
6%
Table 1A: January 2024 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Municipals3 US Govt.Bonds3 Jan-24
19.1%
13.0%
17.8%
6.2%
1.8%
Jan-23
19.5%
16.8%
18.8%
6.0%
3.1%
Bps Change
(40) bps
(380) bps
(100) bps
+20 bps
(130) bps
1 The FPM for total credit and total rates
for January 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 For January 2024, the Company is
highlighting the impact of single-dealer portfolio trading volume
on U.S. high-grade trading volume and estimated market share, but
will continue to exclude single-dealer portfolio trading activity
from reported trading volume, 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 TRACE reported volumes are available on the Company’s website
at investor.marketaxess.com/volume.
Beginning with January 2024, the Company will no longer be
providing Emerging Markets or Eurobonds market ADV or estimated
market share. The Company is currently reviewing its methodology
for calculating such statistics, which historically have been
derived from MarketAxess TraX data, to ensure that the statistics
presented provide a complete and accurate view of the market.
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; 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 January
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
157,093
$
7,481
$
124,458
$
6,223
26.2
%
20.2
%
High-yield
29,330
1,397
37,460
1,873
(21.7
)
(25.4
)
Emerging markets
78,249
3,726
68,878
3,444
13.6
8.2
Eurobonds
42,755
1,943
40,598
1,933
5.3
0.5
Other credit
8,767
417
10,536
527
(16.8
)
(20.9
)
Total credit trading1
316,194
14,964
281,930
14,000
12.2
6.9
Rates
U.S. government bonds2
344,527
16,406
442,086
22,104
(22.1
)
(25.8
)
Agency and other government bonds1
10,516
485
9,447
457
11.3
6.1
Total rates trading
355,043
16,891
451,533
22,561
(21.4
)
(25.1
)
Total trading
$
671,237
$
31,855
$
733,463
$
36,561
(8.5
)
(12.9
)
Number of U.S. Trading Days3
21
20
Number of U.K. Trading Days4
22
21
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/20240204137907/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
MarketAxess (NASDAQ:MKTX)
Graphique Historique de l'Action
De Avr 2024 à Mai 2024
MarketAxess (NASDAQ:MKTX)
Graphique Historique de l'Action
De Mai 2023 à Mai 2024