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 July 2023.1
Chris Concannon, CEO of MarketAxess, commented:
“Unusually low credit spread volatility persisted in July,
temporarily reducing credit spread price dispersion and Open
Trading price improvement. Lower U.S. high-yield volatility has
reduced ETF market maker activity, but our leading market position
remains strong. Estimated market share trends in our international
product areas, emerging markets and Eurobonds, are encouraging and
we are starting to see a rebound in emerging market volumes on
strong local currency activity. Our new technology roll-out is
gaining momentum, providing clients with new tools to access our
unique liquidity pool and diverse set of trading protocols. We
believe that our Open Trading liquidity pool, combined with our
innovative technology solutions, will drive stronger growth in the
coming quarters as markets normalize.”
Select July 2023 highlights*
- Total credit average daily volume (“ADV”) of $11.4
billion, up 8.0%.
- U.S. high-grade ADV of $5.2 billion, up
8.9% with estimated market share of 19.9%. New
issuance represented approximately 13% of U.S. high-grade
TRACE in the second half of July, compared to approximately
7% in the first half of the month.
- U.S. high-yield ADV of $1.4 billion, down 13.7%
with estimated market share of 17.1%. ETF market maker
activity decreased approximately 62% in the second half of
July, compared to the first half of the month.
- 13.8% increase in emerging markets ADV to $2.9
billion driven by a 26.7% increase in local markets
trading activity; 1.9% increase in emerging markets
estimated market ADV.2
- 27.8% increase in Eurobonds ADV to $1.6
billion with estimated market share of 16.5%.
Eurobonds estimated market ADV increased 29.2%.3
- Municipal bond ADV of $348 million, down 12.8%
with estimated market share of 5.7% (+20 bps).
Municipal bond estimated market ADV decreased 16.0%.
- 34% Open Trading® share4 of total credit trading volume,
down from 36% in the prior year on low volatility. Estimated
price improvement5 via Open Trading was approximately
$44 million and is $453 million year-to-date
through July 2023.
- The preliminary FPM1 for total credit for July 2023 was
approximately $160, compared to $165 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 $4.90, compared to $4.39 in
the prior year.
*All comparisons versus July 2022 unless otherwise noted.
Table 1: July 2023 trading ADV
CREDIT RATES US/UKTrading Days6
TotalADV 10TotalCredit High-Grade
High-Yield EmergingMarkets Eurobonds
MunicipalBonds TotalRates US Govt.Bonds
Agcy./OtherGovt. Bonds
20/21
$28,315
$11,393
$5,164
$1,370
$2,947
$1,555
$348
$16,922
$16,530
$392
20/21
$31,138
$10,551
$4,743
$1,587
$2,589
$1,217
$399
$20,587
$20,299
$288
(9%)
8%
9%
(14%)
14%
28%
(13%)
(18%)
(19%)
36%
Table 1A: July 2023 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 CompositeCorporate Bond7 Municipals
US Govt.Bonds
Jul-23
19.9%
17.1%
19.2%
16.5%
19.0%
5.7%
2.7%
Jul-22
20.7%
18.6%
20.1%
16.7%
20.0%
5.5%
3.9%
Bps Change
(80) bps
(150) bps
(90) bps
(20) bps
(100) bps
+20 bps
(120) bps
Table 1B: Rolling 6-month trading ADV (period ending July 31,
2023 compared to period ending July 31, 2022)
CREDIT RATES US/UK Trading Days6
TotalADV TotalCredit High-Grade
High-Yield EmergingMarkets Eurobonds
Municipal Bonds TotalRates US Govt.Bonds
Agcy./OtherGovt. Bonds
124/124
$31,680
$12,549
$5,847
$1,647
$2,824
$1,830
$389
$19,131
$18,709
$422
124/124
$35,694
$11,917
$5,544
$1,684
$2,865
$1,453
$348
$23,777
$23,374
$403
(11%)
5%
5%
(2%)
(1%)
26%
12%
(20%)
(20%)
5%
Table 1C: Rolling 6-month estimated market share (period
ending July 31, 2023 compared to period ending July 31,
2022)
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-Yield Combined
Eurobonds3 CompositeCorporate Bond7 Municipals
US Govt.Bonds
Jul-23
20.3%
17.6%
19.5%
17.1%
19.5%
5.9%
2.9%
Jul-22
21.4%
16.7%
19.4%
14.4%
19.4%
4.2%
3.7%
Bps Change
(110) bps
+90 bps
+10 bps
+270 bps
+10 bps
+170 bps
(80) bps
1 The FPM for total credit and total rates for July 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 ADV and 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.
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 July 31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
103,276
$
5,164
$
94,875
$
4,743
8.9
%
8.9
%
High-yield
27,401
1,370
31,746
1,587
(13.7
)
(13.7
)
Emerging markets
58,932
2,947
51,779
2,589
13.8
13.8
Eurobonds
32,659
1,555
25,558
1,217
27.8
27.8
Other credit
7,143
357
8,296
415
(13.9
)
(14.0
)
Total credit trading1
229,411
11,393
212,254
10,551
8.1
8.0
Rates
U.S. government bonds2
330,607
16,530
405,990
20,299
(18.6
)
(18.6
)
Agency and other government bonds1
8,090
392
5,924
288
36.6
36.1
Total rates trading
338,697
16,922
411,914
20,587
(17.8
)
(17.8
)
Total trading
$
568,108
$
28,315
$
624,168
$
31,138
(9.0
)
(9.1
)
Number of U.S. Trading Days3
20
20
Number of U.K. Trading Days4
21
21
Year-to-Date Ended July
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
849,230
$
5,897
$
796,754
$
5,533
6.6
%
6.6
%
High-yield
241,664
1,678
242,401
1,683
(0.3
)
(0.3
)
Emerging markets
419,030
2,910
416,832
2,895
0.5
0.5
Eurobonds
267,520
1,845
209,113
1,452
27.9
27.1
Other credit
60,555
420
51,957
361
16.5
16.3
Total credit trading1
1,837,999
12,750
1,717,057
11,924
7.0
6.9
Rates
U.S. government bonds2
2,762,026
19,181
3,365,458
23,371
(17.9
)
(17.9
)
Agency and other government bonds1
61,872
427
59,287
412
4.4
3.6
Total rates trading
2,823,898
19,608
3,424,745
23,783
(17.5
)
(17.6
)
Total trading
$
4,661,897
$
32,358
$
5,141,802
$
35,707
(9.3
)
(9.4
)
Number of U.S. Trading Days3
144
144
Number of U.K. Trading Days4
145
144
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/20230802736778/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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