Record 4Q24 Total Trading ADV, Up 38% With
Record Municipal Bond ADV and Record Total Rates ADV
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 December 2024 and the fourth quarter
ended December 31, 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“In the fourth quarter, we delivered record total trading
ADV, driven by strong growth across most product areas, including
16% growth year-over-year in our international products,
record ADV in municipal bonds and record total rates
ADV. Emerging markets ADV increased 18% compared to the
prior year to the second highest level of quarterly trading
ADV ever. We delivered these strong results to finish the year as
we continue to execute our high-touch strategy, focused on
portfolio trading and block trading. A record 77% of
portfolio trades were executed on X-Pro in December and we are
continuing to gain traction with our block trading solution, which
was launched in the fourth quarter in emerging markets and
Eurobonds. Block trades in emerging markets on our platform
increased 17% in 4Q24 compared to the prior year, with the
average block trade size increasing to $13 million. We have
additional enhancements coming in the first quarter, which we
believe will enhance our market share in the coming quarters.”
Select December 2024 Highlights
- Total average daily volume (“ADV”) of $32.0 billion
increased 19% compared to the prior year, but decreased
29% compared to November 2024 levels. The decline in total
trading ADV in December compared to November 2024 includes the
impact of the normal seasonal slowdown we experience across most
product areas in the month. These results were driven by total
rates ADV of $19.8 billion, which increased 34%
compared to the prior year, but decreased 36% compared to
November 2024. Total credit ADV of $12.3 billion was in line
with the prior year, but decreased 14% compared to November
2024.
U.S. Credit2
- U.S. high-grade ADV of $5.9 billion decreased
3% compared to the prior year, and decreased 9%
compared to November 2024. Estimated market ADV increased 9%
compared to the prior year, but decreased 16% compared to
November 2024. Estimated market share was 19.5%, down from
22.1% in the prior year, but up from 18.0% in
November 2024. Including the impact of single-dealer portfolio
trades, estimated market share was 19.6%, down from
22.1% in the prior year, but up from 18.1% in
November 2024.
- U.S. high-yield ADV of $1.2 billion decreased 14%
compared to the prior year, and decreased 7% compared to
November 2024. Estimated market ADV increased 7% compared to
the prior year, but decreased 22% compared to November 2024.
Estimated market share was 14.7%, down from 18.2% in
the prior year, but up from 12.3% in November 2024.
Including the impact of single-dealer portfolio trades,
estimated market share was 14.7%, down from 18.3% in
the prior year, but up from 12.6% in November 2024.
Other Credit
- Emerging markets ADV of $2.9 billion increased 8%
compared to the prior year, but decreased 25% compared to
November 2024. The year-over-year increase was driven by a
14% increase in hard currency ADV, and a 2% increase
in local currency ADV.
- Eurobonds ADV of $1.6 billion increased 2%
compared to the prior year, but decreased 19% compared to
November 2024.
- Record municipal bond ADV of $656 million
increased 37% compared to the prior year, and increased
4% compared to November 2024. Estimated market ADV increased
26% compared to the prior year, and increased 2%
compared to November 2024. Estimated market share was 6.8%,
up from 6.3% in the prior year, and up slightly from
6.7% in November 2024.3
Strategic Priority Related Protocols & Workflow
Tools
- $1.0 billion in total portfolio trading ADV increased
48% compared to the prior year, and increased 8%
compared to November 2024. A record 77% of portfolio trading
volume was executed over X-Pro. — Estimated U.S. high-grade and
U.S. high-yield TRACE portfolio trading market ADV increased
3% compared to November 2024.
- Our estimated market share of U.S. high-grade and U.S.
high-yield TRACE portfolio trading was 16.7% in December
2024, up from 13.6% in November 2024. — Portfolio trading
represented approximately 13% of U.S. high-grade and U.S.
high-yield TRACE in December 2024, up from 10% in November
2024.
- Open Trading ADV of $3.6 billion decreased 7%
compared to the prior year, and decreased 15% compared to
November 2024. Open Trading share4 of total credit trading volume
was 36%, down from 37% in the prior year, but up from
35% in November 2024.
- Dealer RFQ ADV of $1.0 billion across all credit
products decreased 5% compared to the prior year, and
decreased 23% compared to November 2024.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved ADV of $135 million, down 9% compared to the
prior year, and down 8% compared to November 2024.
Rates
- Total rates ADV of $19.8 billion increased 34%
compared to the prior year, but decreased 36% compared to
November 2024.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for December 2024 was
approximately $148, down from $159 in the prior year,
but up from $146 in November 2024. The decline in total
credit FPM year-over-year was due to protocol and product mix,
principally by the lower Open Trading share of U.S. high-grade, an
increase in portfolio trading activity and lower levels of U.S.
high-yield activity. The increase in total credit FPM
month-over-month was due to product mix, principally U.S.
high-yield. The preliminary FPM for total rates for December 2024
was approximately $4.14, down from $4.61 in the prior
year, but up from $4.07 in November 2024.
Select 4Q24 Highlights
- Record total ADV of $41.0 billion increased
38% compared to the prior year, and increased 1%
compared to 3Q24 levels. These results were driven by record
total rates ADV of $27.1 billion, which increased 64%
compared to the prior year, and increased 3% compared to
3Q24 levels. U.S. Treasury ADV on the platform in 4Q23 was
negatively impacted by an outage at ICBC, the third-party the
Company was then using for U.S. Treasury settlement services. Total
credit ADV of $13.9 billion increased 6% compared to
the prior year, but decreased 2% compared to 3Q24.
U.S. Credit2
- U.S. high-grade ADV of $6.5 billion increased
4% compared to the prior year, but decreased 8%
compared to 3Q24. Estimated market ADV increased 18%
compared to the prior year, but decreased 3% compared to
3Q24. Estimated market share was 18.4%, down from
20.9% in the prior year, and down from 19.5% in 3Q24.
Including the impact of single-dealer portfolio trades,
estimated market share was 18.8%, down from 21.0% in
the prior year, and down from 20.0% in 3Q24.
- U.S. high-yield ADV of $1.3 billion decreased 19%
compared to the prior year, but increased 5% compared to
3Q24. Estimated market ADV increased 5% compared to the
prior year, and increased 2% compared to 3Q24. Estimated
market share was 13.4%, down from 17.2% in the prior
year, but up from 13.0% in 3Q24. Including the impact of
single-dealer portfolio trades, estimated market share was
13.7%, down from 17.3% in the prior year, but up from
13.4% in 3Q24.
Other Credit
- Emerging markets ADV of $3.5 billion increased
18% compared to the prior year, and increased 4%
compared to 3Q24. The year-over-year increase was driven by a
26% increase in hard currency ADV, and a 7% increase
in local currency ADV.
- Eurobonds ADV of $2.0 billion increased 13%
compared to the prior year, and increased 6% compared to
3Q24.
- Record municipal bond ADV of $620 million
increased 15% compared to the prior year, and increased
7% compared to 3Q24. Estimated market ADV decreased
9% compared to the prior year, but increased 32%
compared to 3Q24. Estimated market share was 7.1%, up from
5.6% in the prior year, but down from a record
8.7% in 3Q24.3
Strategic Priority Related Protocols & Workflow
Tools
- $1.1 billion in total portfolio trading ADV increased
57% compared to the prior year, but decreased 8%
compared to 3Q24. A record 71% of portfolio trading volume
was executed over X-Pro. — Estimated U.S. high-grade and U.S.
high-yield TRACE portfolio trading market ADV was flat compared to
3Q24.
- Our estimated market share of U.S. high-grade and U.S.
high-yield TRACE portfolio trading was 16.2%, down from
20.0% in 3Q24. — Portfolio trading represented approximately
11% of U.S. high-grade and U.S. high-yield TRACE in 4Q24, in
line with 3Q24.
- Open Trading ADV of $4.1 billion increased 2%
compared to the prior year, and was in line with 3Q24. Open Trading
share4 of total credit trading volume was 35%, down from
36% in the prior year, but in line with 3Q24 levels.
- Dealer RFQ ADV of $1.2 billion across all credit
products increased 8% compared to the prior year, and
increased 5% compared to 3Q24.
- AxessIQ achieved record ADV of $147
million, up 6% compared to the prior year, and up
14% compared to 3Q24.
Rates
- Record total rates ADV of $27.1 billion increased
64% compared to the prior year, and increased 3%
compared to 3Q24. U.S. Treasury ADV on the platform in November
2023 was negatively impacted by an outage at ICBC, the third-party
the Company was then using for U.S. Treasury settlement
services.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for 4Q24 was approximately
$150, down from $156 in the prior year, but up
slightly from $149 in 3Q24. The decline in total credit FPM
year-over-year was due to product mix, principally lower levels of
U.S. high-yield activity. The increase in total credit FPM
quarter-over-quarter was due to product mix, principally U.S.
high-yield. The preliminary FPM for total rates for 4Q24 was
approximately $4.30, down from $4.62 in the prior
year, but up from $4.15 in 3Q24.
Table 1: December 2024 ADV
CREDIT RATES $ in millions(unaudited)
US/UK Trading Days5
Total ADV
Total Credit
High-Grade
High-Yield
Emerging Markets
Eurobonds
Municipal Bonds
Total Rates
US Govt. Bonds
Agcy./Other Govt.
Bonds
Dec-24
21/20
$32,037
$12,285
$5,921
$1,219
$2,869
$1,619
$656
$19,752
$18,735
$1,017
Nov-24
19/21
$44,945
$14,291
$6,533
$1,312
$3,811
$2,001
$631
$30,654
$29,325
$1,329
Dec-23
20/19
$26,994
$12,262
$6,133
$1,412
$2,649
$1,580
$480
$14,732
$14,380
$352
YoY % Change
19%
–
(3%)
(14%)
8%
2%
37%
34%
30%
189%
MoM % Change
(29%)
(14%)
(9%)
(7%)
(25%)
(19%)
4%
(36%)
(36%)
(23%)
Table 1A: December 2024 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Municipals3
US Govt. Bonds3
Dec-24
19.5%
14.7%
18.5%
6.8%
2.3%
Nov-24
18.0%
12.3%
16.7%
6.7%
2.9%
Dec-23
22.1%
18.2%
21.3%
6.3%
1.9%
YoY Bps Change
(260) bps
(350) bps
(280) bps
+50 bps
+40 bps
MoM Bps Change
+150 bps
+240 bps
+180 bps
+10 bps
(60) bps
Table 1B: 4Q24 ADV
CREDIT RATES $ in millions(unaudited)
US/UK Trading Days5
Total ADV
Total Credit
High-Grade
High-Yield
Emerging Markets
Eurobonds
Municipal Bonds
Total Rates
US Govt. Bonds
Agcy./Other Govt.
Bonds
4Q24
62/64
$41,030
$13,883
$6,454
$1,345
$3,459
$2,001
$620
$27,147
$25,952
$1,195
3Q24
64/65
$40,516
$14,116
$7,027
$1,278
$3,333
$1,891
$577
$26,400
$25,302
$1,098
4Q23
62/63
$29,641
$13,108
$6,215
$1,653
$2,927
$1,767
$539
$16,533
$16,106
$427
YoY % Change
38%
6%
4%
(19%)
18%
13%
15%
64%
61%
180%
QoQ % Change
1%
(2%)
(8%)
5%
4%
6%
7%
3%
3%
9%
Table 1C: 4Q24 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield High-Grade/High-YieldCombined
Municipals3 US Govt.Bonds3
4Q24
18.4%
13.4%
17.3%
7.1%
2.8%
3Q24
19.5%
13.0%
18.1%
8.7%
2.6%
4Q23
20.9%
17.2%
20.0%
5.6%
2.0%
YoY Bps Change
(250) bps
(380) bps
(270) bps
+150 bps
+80 bps
QoQ Bps Change
(110) bps
+40 bps
(80) bps
(160) bps
+20 bps
1
The FPM for total credit and total rates
for December 2024 and 4Q24 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. Ban 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 December
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
124,334
$
5,921
$
122,656
$
6,133
1
%
(3
)
%
High-yield
25,598
1,219
28,248
1,412
(9
)
(14
)
Emerging markets
60,240
2,869
52,988
2,649
14
8
Eurobonds
32,380
1,619
30,025
1,580
8
2
Other credit
13,800
657
9,762
488
41
35
Total credit trading1
256,352
12,285
243,679
12,262
5
-
Rates
U.S. government bonds2
393,430
18,735
287,590
14,380
37
30
Agency and other government bonds1
20,414
1,017
6,830
352
199
189
Total rates trading
413,844
19,752
294,420
14,732
41
34
Total trading
$
670,196
$
32,037
$
538,099
$
26,994
25
19
Number of U.S. Trading Days3
21
20
Number of U.K. Trading Days4
20
19
Quarter Ended December
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
400,129
$
6,454
$
385,301
$
6,215
4
%
4
%
High-yield
83,373
1,345
102,501
1,653
(19
)
(19
)
Emerging markets
214,439
3,459
181,445
2,927
18
18
Eurobonds
128,064
2,001
111,330
1,767
15
13
Other credit
38,698
624
33,854
546
14
14
Total credit trading1
864,703
13,883
814,431
13,108
6
6
Rates
U.S. government bonds2
1,608,995
25,952
998,542
16,106
61
61
Agency and other government bonds1
76,221
1,195
26,684
427
186
180
Total rates trading
1,685,216
27,147
1,025,226
16,533
64
64
Total trading
$
2,549,919
$
41,030
$
1,839,657
$
29,641
39
38
Number of U.S. Trading Days3
62
62
Number of U.K. Trading Days4
64
63
Table 2: Trading Volume Detail
(continued)
Year-to-Date Ended December
31,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,711,275
$
6,845
$
1,457,559
$
5,854
17
%
17
%
High-yield
334,761
1,339
398,275
1,599
(16
)
(16
)
Emerging markets
859,412
3,438
717,877
2,883
20
19
Eurobonds
508,093
2,008
441,171
1,758
15
14
Other credit
135,975
543
112,451
451
21
20
Total credit trading1
3,549,516
14,173
3,127,333
12,545
13
13
Rates
U.S. government bonds2
5,511,045
22,044
4,545,850
18,256
21
21
Agency and other government bonds1
227,614
902
106,933
427
113
111
Total rates trading
5,738,659
22,946
4,652,783
18,683
23
23
Total trading
$
9,288,175
$
37,119
$
7,780,116
$
31,228
19
19
Number of U.S. Trading Days3
250
249
Number of U.K. Trading Days4
253
251
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/20250105378963/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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