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 the second quarter ended
June 30, 2023.1
Chris Concannon, CEO of MarketAxess, commented:
“June and second quarter market trends reflect dramatically
lower credit spread volatility versus the prior year same periods.
The second quarter trading range of credit spreads for U.S.
high-grade and U.S. high-yield bond indices was approximately 1/3rd
of last year’s second quarter levels, reducing client activity for
some segments of the market. Despite lower volatility, Open Trading
share of total credit trading volume was in line with the prior
year at approximately 34%, and we delivered estimated price
improvement of $157 million5 to clients in the quarter. Client
adoption of our growing suite of trading automation tools remains
strong and estimated market share trends continue to be positive in
our international product areas and municipal bonds.”
Select 2Q23 highlights*
- U.S. high-grade average daily volume (“ADV”) of $5.7
billion, with estimated market share of 20.7%
reflecting the impact of a 17% increase in the new issue
calendar compared to the prior year.
- U.S. high-yield ADV of $1.5 billion with estimated
market share of 16.5%. Low credit spread volatility has
reduced trading activity by ETF market makers in U.S. high-yield,
with estimated U.S. high-yield TRACE market ADV down
13.2%.
- Emerging markets ADV of $2.7 billion decreased from
$2.8 billion in the prior year; decrease of 12.3% in
emerging markets estimated market ADV.2 Local markets emerging
markets trading volume increased 10.7% to $75.0
billion and represented a record 44.1% of total
emerging markets trading volume in the quarter. Local markets
trading volume in the quarter benefited from a record $31.2
billion in June, representing a 31.9% increase compared to
the prior year.
- 30.2% increase in Eurobonds ADV to a record
$1.9 billion with a record 18.4% (+330 bps)
estimated market share, up from 15.1%.3
- Municipal bond ADV of $389 million, up 4.8%, with
estimated market share of 5.8% (+190 bps), up from
3.9%. Municipal bond market ADV decreased 30.1%.
- 34% Open Trading® share4 of total credit trading volume.
Estimated price improvement5 via Open Trading was
approximately $157 million in the quarter and is
$409 million year-to-date through second quarter 2023.
- The preliminary FPM1 for total credit for second quarter 2023
was approximately $157 ($160 excluding the impact of
client crossing programs in Eurobonds in April 2023), compared to
$166 in the prior year. The decline in total credit FPM was
principally due to the mix of credit products, specifically the
decline in U.S. high-yield trading volume which is the highest FPM
product. The preliminary FPM for total rates was $4.80,
compared to $4.21 in second quarter 2022.
*All comparisons versus second quarter 2022 unless otherwise
noted.
Table 1: June 2023 trading ADV
CREDIT
RATES
$ in millions(unaudited)
US/UK Trading Days6
Total ADV
Total Credit
High-Grade
High-Yield
Emerging Markets
Eurobonds
Municipal Bonds
Total Rates
US Govt. Bonds
Agcy./Other Govt.
Bonds
Jun-23
21/22
$27,276
$12,284
$5,660
$1,453
$3,053
$1,733
$370
$14,992
$14,577
$415
Jun-22
21/20
$33,360
$12,675
$5,809
$1,971
$2,854
$1,622
$379
$20,685
$20,245
$440
% Change
(18%)
(3%)
(3%)
(26%)
7%
7%
(2%)
(28%)
(28%)
(6%)
Table 1A: June 2023 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond7
Municipals US Govt.Bonds Jun-23
20.6%
16.3%
19.6%
16.3%
19.2%
5.3%
2.5%
Jun-22
22.7%
19.0%
21.6%
17.2%
21.2%
4.4%
3.4%
Bps Change
(210) bps
(270) bps
(200) bps
(90) bps
(200) bps
+90 bps
(90) bps
Table 1B: 2Q23 trading ADV
CREDIT
RATES
$ in millions(unaudited)
US/UK Trading Days6 TotalADV
TotalCredit High-Grade High-Yield
EmergingMarkets Eurobonds Municipal Bonds
TotalRates US Govt.Bonds Agcy./OtherGovt.
Bonds
2Q23
62/60
$27,828
$12,226
$5,697
$1,474
$2,714
$1,942
$389
$15,602
$15,163
$439
2Q22
62/60
$35,389
$12,290
$5,803
$1,771
$2,828
$1,491
$371
$23,099
$22,657
$442
% Change
(21%)
(1%)
(2%)
(17%)
(4%)
30%
5%
(32%)
(33%)
(1%)
Table 1C: 2Q23 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond7
Municipals US Govt.Bonds
2Q23
20.7%
16.5%
19.7%
18.4%
19.7%
5.8%
2.5%
2Q22
22.3%
17.3%
20.9%
15.1%
20.2%
3.9%
3.7%
Bps Change
(160) bps
(80) bps
(120) bps
+330 bps
(50) bps
+190 bps
(120) bps
Table 1D: Rolling 6-month trading ADV (period ending June 30,
2023 compared to period ending June 30, 2022)
CREDIT
RATES
$ in millions(unaudited)
US/UK Trading Days6 TotalADV
TotalCredit High-Grade High-Yield
EmergingMarkets Eurobonds Municipal Bonds
TotalRates US Govt.Bonds Agcy./OtherGovt.
Bonds
Jun-23
124/124
$33,014
$12,972
$6,016
$1,728
$2,904
$1,894
$418
$20,042
$19,608
$434
Jun-22
124/123
$36,447
$12,147
$5,660
$1,699
$2,944
$1,492
$329
$24,300
$23,867
$433
% Change
(9%)
7%
6%
2%
(1%)
27%
27%
(18%)
(18%)
0%
Table 1E: Rolling 6-month estimated market share (period
ending June 30, 2023 compared to period ending June 30,
2022)
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 Composite Corporate Bond7
Municipals US Govt.Bonds
Jun-23
20.3%
17.5%
19.6%
17.1%
19.4%
6.1%
3.0%
Jun-22
21.5%
16.2%
20.0%
13.4%
19.1%
4.1%
3.7%
Bps Change
(120) bps
+130 bps
(40) bps
+370 bps
+30 bps
+200 bps
(70) bps
1 The FPM for total credit and total rates for the second
quarter ended June 30, 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 55% of the total emerging
markets market) and FINRA TRACE-reportable emerging markets trading
volume, principally U.S. dollar denominated corporates.
3 Eurobonds estimated market share is derived from MarketAxess
TraX data for Eurobonds and covered bonds market trading volume,
which is currently estimated to represent approximately 70% of the
total European market. Excluding the impact of client crossing
programs in April 2023, Eurobonds estimated market share for second
quarter 2023 and the rolling 6-month period ending June 30, 2023
would have been approximately 16.9% and 16.4%,
respectively.
4 Total credit Open Trading share 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 Estimated price improvement consists of estimated liquidity
taker price improvement (defined as the difference between the
winning price and the best disclosed dealer cover price) and
estimated liquidity provider price improvement (defined as the
difference between the winning price and then current Composite+
bid or offer level, offer if the provider is buying, bid if
provider is selling) at the time of the inquiry.
6 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.
7 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 June
30, In millions (unaudited)
2023
2022
% Change Volume ADV Volume
ADV Volume ADV Credit
High-grade
$
118,868
$
5,660
$
121,988
$
5,809
(2.6
)
%
(2.6
)
%
High-yield
30,509
1,453
41,396
1,971
(26.3
)
(26.3
)
Emerging markets
64,103
3,053
59,939
2,854
6.9
7.0
Eurobonds
38,124
1,733
32,440
1,622
17.5
6.8
Other credit
8,105
385
8,796
419
(7.9
)
(8.1
)
Total credit trading1
259,709
12,284
264,559
12,675
(1.8
)
(3.1
)
Rates U.S. government bonds2
306,127
14,577
425,146
20,245
(28.0
)
(28.0
)
Agency and other government bonds1
8,990
415
9,004
440
(0.2
)
(5.7
)
Total rates trading
315,117
14,992
434,150
20,685
(27.4
)
(27.5
)
Total trading
$
574,826
$
27,276
$
698,709
$
33,360
(17.7
)
(18.2
)
Number of U.S. Trading Days3
21
21
Number of U.K. Trading Days4
22
20
Quarter Ended June 30, In millions
(unaudited)
2023
2022
% Change Volume ADV Volume
ADV Volume ADV Credit
High-grade
$
353,239
$
5,697
$
359,785
$
5,803
(1.8
)
%
(1.8
)
%
High-yield
91,390
1,474
109,829
1,771
(16.8
)
(16.8
)
Emerging markets
168,257
2,714
175,314
2,828
(4.0
)
(4.0
)
Eurobonds
116,495
1,942
89,480
1,491
30.2
30.2
Other credit
24,729
399
24,586
397
0.6
0.5
Total credit trading1
754,110
12,226
758,994
12,290
(0.6
)
(0.5
)
Rates U.S. government bonds2
940,127
15,163
1,404,750
22,657
(33.1
)
(33.1
)
Agency and other government bonds1
26,721
439
26,845
442
(0.5
)
(0.7
)
Total rates trading
966,848
15,602
1,431,595
23,099
(32.5
)
(32.5
)
Total trading
$
1,720,958
$
27,828
$
2,190,589
$
35,389
(21.4
)
(21.4
)
Number of U.S. Trading Days3
62
62
Number of U.K. Trading Days4
60
60
Table 2: Trading Volume Detail (continued)
Year-to-Date Ended June 30, In millions
(unaudited)
2023
2022
% Change Volume ADV Volume
ADV Volume ADV Credit
High-grade
$
745,954
$
6,016
$
701,878
$
5,660
6.3
%
6.3
%
High-yield
214,263
1,728
210,656
1,699
1.7
1.7
Emerging markets
360,098
2,904
365,054
2,944
(1.4
)
(1.4
)
Eurobonds
234,861
1,894
183,556
1,492
28.0
26.9
Other credit
53,412
430
43,661
352
22.3
22.2
Total credit trading1
1,608,588
12,972
1,504,805
12,147
6.9
6.8
Rates U.S. government bonds2
2,431,419
19,608
2,959,466
23,867
(17.8
)
(17.8
)
Agency and other government bonds1
53,782
434
53,363
433
0.8
0.2
Total rates trading
2,485,201
20,042
3,012,829
24,300
(17.5
)
(17.5
)
Total trading
$
4,093,789
$
33,014
$
4,517,634
$
36,447
(9.4
)
(9.4
)
Number of U.S. Trading Days3
124
124
Number of U.K. Trading Days4
124
123
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/20230705632664/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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