Strong Growth in Market Volume Drove Record
Levels of Trading Activity Across the Platform in September
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 September 2024 and the third quarter
ended September 30, 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“Strong market volumes and a robust new issue calendar helped
drive an increase in the velocity of electronic trading and
record levels of trading activity in September across
our platform. Against this improving market backdrop, in
3Q24 we delivered 27% growth in total credit ADV
compared to the prior year, driven by strength in U.S. high-grade
(+36%), emerging markets (+19%), Eurobonds
(+27%) and municipals (+49%), with record
Municipal bond estimated market share. We also generated
record portfolio trading ADV of $1.1 billion, which
helped drive our portfolio trading quarterly estimated market share
of U.S. high-grade and U.S. high-yield TRACE to 20%, its
highest quarterly level in 2024. We are continuing the roll-out of
X-Pro to our global client base which, we believe, is important to
the success of our “high-touch” strategy.”
Select September 2024 Highlights
- Record total average daily volume (“ADV”) of $45.2
billion increased 52.5% compared to the prior year, and
increased 8.6% compared to August 2024. These strong results
were driven by record total credit ADV of $16.5
billion, representing an increase of 40.1% compared to
the prior year, and an increase of 24.4% compared to August
2024. Total rates ADV of $28.7 billion, which increased
60.7% compared to the prior year, and increased 1.2%
compared to August 2024 levels, also contributed to the strong
performance in September 2024.
U.S. Credit2
- Record U.S. high-grade ADV of $8.4 billion
increased 56.2% compared to the prior year, and increased
25.5% compared to August 2024. Estimated market ADV
increased 53.3% compared to the prior year, and increased
26.1% compared to August 2024. Estimated market share was
19.9%, up from 19.5% in the prior year, and in line
with 19.9% in August 2024. Including the impact of
single-dealer portfolio trades, estimated market share was
20.3%, up from 19.5% in the prior year, but down from
20.9% in August 2024. — The U.S. high-grade new issue
calendar was $171.0 billion in September, up 36.7%
compared to the prior year, and up 58.5% compared to August
2024.
- U.S. high-yield ADV of $1.4 billion increased
8.1% compared to the prior year, and increased 11.5%
compared to August 2024. Estimated market ADV increased
37.3% compared to the prior year, and increased 32.4%
compared to August 2024. Estimated market share was 12.1%
(12.5% including single-dealer portfolio trades), down from
15.4% in the prior year, and down from 14.4%
(14.6% including single-dealer portfolio trades) in August
2024. — The U.S. high-yield new issue calendar was $36.7
billion in September, the highest level of monthly new
issue since September 2021, representing an increase of
56.1% compared to the prior year, and an increase of
102.8% compared to August 2024.
Other Credit
- Emerging markets ADV of $3.7 billion increased
25.1% compared to the prior year, and increased 15.8%
compared to August 2024. The year-over-year increase was driven by
a 40.4% increase in hard currency ADV, and an 8.7%
increase in local currency ADV.
- Record Eurobonds ADV of $2.4 billion increased
42.3% compared to the prior year, and increased 58.5%
compared to August 2024.
- Municipal bond ADV of $577 million increased
35.1% compared to the prior year, but declined 0.5%
compared to August 2024. Estimated market ADV decreased
16.6% compared to the prior year, and decreased 3.4%
compared to August 2024. Record estimated market share of
8.8%, up from 5.5% in the prior year, and up from
8.6% in August 2024.3
Strategic Priority Related Protocols & Workflow
Tools
- Record $1.5 billion in total portfolio trading ADV
increased 191.8% compared to the prior year, and increased
52.3% compared to August 2024. Our estimated market share of
U.S. high-grade and U.S. high-yield TRACE portfolio trading was
20.8% in September 2024, down from 21.8% in August
2024, but up from 17.2% in July 2024. Portfolio trading
represented 11.8% of U.S. high-grade and U.S. high-yield
TRACE in September 2024, compared to 9.5% in August
2024.
- Record Open Trading ADV of $4.8 billion,
increased 46.8% compared to the prior year, and increased
21.6% compared to August 2024. Open Trading share4 of total
credit trading volume was 35%, up from 33% in the
prior year, but down from 36% in August 2024.
- Record Dealer RFQ ADV of $1.5 billion across all
credit products increased 55.4% compared to the prior year,
and increased 36.8% compared to August 2024.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved record ADV of $166 million, up 51.8%
compared to the prior year, and up 47.7% compared to August
2024.
Rates
- Total rates ADV of $28.7 billion, up 60.7%
compared to the prior year, and up 1.2% compared to August
2024.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for September 2024 was
approximately $150, down slightly from $151 in the
prior year, and down from $153 in August 2024. The
preliminary FPM for total rates was approximately $4.18,
down from $4.75 in the prior year, but up from $4.04
in August 2024.
Select 3Q24 Highlights
- Record total ADV of $40.5 billion increased
38.4% compared to the prior year, and increased 18.6%
compared to 2Q24. These strong results were driven by total credit
ADV of $14.1 billion, representing an increase of
26.5% compared to the prior year, and an increase of
2.7% compared to 2Q24 levels. Strong growth in total rates
ADV, which increased 45.6% compared to the prior year, and
increased 29.2% compared to 2Q24, also contributed to the
strong performance in 3Q24.
U.S. Credit2
- U.S. high-grade ADV of $7.0 billion increased
35.7% compared to the prior year, and increased 9.2%
compared to 2Q24. Estimated market ADV increased 39.4%
compared to the prior year, and increased 5.1% compared to
2Q24. Estimated market share was 19.5%, down from
20.0% in the prior year, but up from 18.7% in 2Q24.
Including the impact of single-dealer portfolio trades,
estimated market share was 20.0%, in line with 20.1%
in the prior year, but up from 19.2% in 2Q24.
- U.S. high-yield ADV of $1.3 billion decreased
1.2% compared to the prior year, and decreased 4.4%
compared to 2Q24. Estimated market ADV increased 22.6%
compared to the prior year, but decreased 0.5% compared to
2Q24. Estimated market share was 13.0% (13.4%
including single-dealer portfolio trades), down from 16.1%
in the prior year, and down from 13.5% (13.8%
including single-dealer portfolio trades) in 2Q24.
Other Credit
- Emerging markets ADV of $3.3 billion increased
19.1% compared to the prior year, but decreased 0.1%
compared to 2Q24. The year-over-year increase was driven by a
19.8% increase in hard currency ADV, and an 18.0%
increase in local currency ADV.
- Eurobonds ADV of $1.9 billion, increased 27.4%
compared to the prior year, but decreased 10.1% compared to
2Q24.
- Record Municipal bond ADV of $577 million
increased 48.7% compared to the prior year, and increased
10.5% compared to 2Q24. Estimated market ADV was down
5.4% compared to the prior year, and down 5.7%
compared to 2Q24. Record estimated market share of
8.7%, up from 5.5% in the prior year, and up from
7.4% in 2Q24.3
Strategic Priority Related Protocols & Workflow
Tools
- Record $1.1 billion in total portfolio trading ADV, up
162.8% compared to the prior year, and up 30.8%
compared to 2Q24. Our estimated market share of U.S. high grade and
U.S. high-yield TRACE portfolio trading was 20.0% in 3Q24.
Portfolio trading represented an estimated 10.7% of U.S.
high-grade and U.S. high-yield TRACE in 3Q24.
- 35% Open Trading share4 of total credit trading volume,
up from 34% in the prior year, and up from 34% in
2Q24.
- Dealer RFQ ADV of $1.2 billion across all credit
products increased 25.9% compared to the prior year, and was
in line with 2Q24 levels.
- AxessIQ achieved ADV of $131 million, up
32.2% compared to the prior year, but down 2.8%
compared to 2Q24.
Rates
- Record total rates ADV of $26.4 billion, up
45.6% compared to the prior year, and up 29.2%
compared to the 2Q24.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for 3Q24 was approximately
$149, down from $155 in the prior year, but up
slightly from $148 in 2Q24. The decline in total credit FPM
year-over-year was due to product and protocol mix shift,
principally lower levels of U.S. high-yield activity and increased
portfolio trading. The preliminary FPM for total rates was
approximately $4.15, down from $4.56 in the prior
year, and down from $4.45 in 2Q24.
Table 1: Trading records
Trading Records for the
Period:
September 2024
3Q24
Total trading ADV ($45.2
billion)
Total trading ADV ($40.5
billion)
Total credit trading ADV ($16.5
billion)
Municipal bonds ADV ($577
million)
U.S. high-grade ADV ($8.4
billion)
Municipal bonds estimated market
share (8.7%)
Eurobonds ADV ($2.4 billion)
Portfolio trading ADV ($1.1
billion)
Municipal bonds estimated market
share (8.8%)
Total rates ADV ($26.4
billion)
Portfolio trading ADV ($1.5
billion)
Open Trading ADV ($4.8
billion)
Dealer RFQ ADV ($1.5 billion)
AxessIQ ADV ($166 million)
Table 1A: September 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
Sep-24
20/21
$45,188
$16,483
$8,414
$1,434
$3,689
$2,359
$577
$28,705
$27,466
$1,239
Aug-24
22/21
$41,610
$13,253
$6,702
$1,286
$3,187
$1,488
$580
$28,357
$27,305
$1,052
Sep-23
20/21
$29,625
$11,764
$5,388
$1,326
$2,949
$1,658
$427
$17,861
$17,331
$530
YoY % Change
53%
40%
56%
8%
25%
42%
35%
61%
58%
134%
MoM % Change
9%
24%
26%
12%
16%
59%
(1%)
1%
1%
18%
Table 1B: September 2024 estimated market share
CREDIT
RATES
(unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Municipals3
US Govt.
Bonds3
Sep-24
19.9%
12.1%
18.2%
8.8%
2.8%
Aug-24
19.9%
14.4%
18.8%
8.6%
2.7%
Sep-23
19.5%
15.4%
18.5%
5.5%
2.3%
YoY Bps Change
+40 bps
(330) bps
(30) bps
+330 bps
+50 bps
MoM Bps Change
- bps
(230) bps
(60) bps
+20 bps
+10 bps
Table 1C: 3Q24 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
3Q24
64/65
$40,516
$14,116
$7,027
$1,278
$3,333
$1,891
$577
$26,400
$25,302
$1,098
2Q24
63/61
$34,169
$13,743
$6,436
$1,337
$3,337
$2,103
$522
$20,426
$19,634
$792
3Q23
63/64
$29,285
$11,156
$5,179
$1,294
$2,799
$1,484
$388
$18,129
$17,713
$416
YoY % Change
38%
27%
36%
(1%)
19%
27%
49%
46%
43%
164%
QoQ % Change
19%
3%
9%
(4%)
(0%)
(10%)
11%
29%
29%
39%
Table 1D: 3Q24 estimated market share
CREDIT
RATES
(unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Municipals3
US Govt.
Bonds3
3Q24
19.5%
13.0%
18.1%
8.7%
2.6%
2Q24
18.7%
13.5%
17.6%
7.4%
2.3%
3Q23
20.0%
16.1%
19.1%
5.5%
2.5%
YoY Bps Change
(50) bps
(310) bps
(100) bps
+320 bps
+10 bps
QoQ Bps Change
+80 bps
(50) bps
+50 bps
+130 bps
+30 bps
1
The FPM for total credit and
total rates for September 2024 and 3Q24 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. 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 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 September
30,
In millions
(unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
168,278
$
8,414
$
107,768
$
5,388
56.1
%
56.2
%
High-yield
28,671
1,434
26,516
1,326
8.1
8.1
Emerging markets
73,774
3,689
58,981
2,949
25.1
25.1
Eurobonds
49,537
2,359
34,823
1,658
42.3
42.3
Other credit
11,749
587
8,879
443
32.3
32.5
Total credit trading1
332,009
16,483
236,967
11,764
40.1
40.1
Rates
U.S. government bonds2
549,317
27,466
346,626
17,331
58.5
58.5
Agency and other government bonds1
25,875
1,239
10,888
530
137.6
133.8
Total rates trading
575,192
28,705
357,514
17,861
60.9
60.7
Total trading
$
907,201
$
45,188
$
594,481
$
29,625
52.6
52.5
Number of U.S. Trading Days3
20
20
Number of U.K. Trading Days4
21
21
Quarter Ended September
30,
In millions
(unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
449,708
$
7,027
$
326,304
$
5,179
37.8
%
35.7
%
High-yield
81,761
1,278
81,511
1,294
0.3
(1.2
)
Emerging markets
213,341
3,333
176,334
2,799
21.0
19.1
Eurobonds
122,914
1,891
94,980
1,484
29.4
27.4
Other credit
37,566
587
25,185
400
49.2
46.8
Total credit trading1
905,290
14,116
704,314
11,156
28.5
26.5
Rates
U.S. government bonds2
1,619,337
25,302
1,115,889
17,713
45.1
42.8
Agency and other government bonds1
71,261
1,098
26,467
416
169.2
163.9
Total rates trading
1,690,598
26,400
1,142,356
18,129
48.0
45.6
Total trading
$
2,595,888
$
40,516
$
1,846,670
$
29,285
40.6
38.4
Number of U.S. Trading Days3
64
63
Number of U.K. Trading Days4
65
64
Table 2: Trading Volume Detail
(continued)
Year-to-Date Ended September
30,
In millions (unaudited)
2024
2023
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,311,146
$
6,974
$
1,072,258
$
5,734
22.3
%
21.6
%
High-yield
251,388
1,337
295,774
1,582
(15.0
)
(15.5
)
Emerging markets
644,973
3,431
536,432
2,869
20.2
19.6
Eurobonds
380,029
2,011
329,841
1,754
15.2
14.7
Other credit
97,271
517
78,597
420
23.8
23.1
Total credit trading1
2,684,807
14,270
2,312,902
12,359
16.1
15.5
Rates
U.S. government bonds2
3,902,050
20,756
3,547,308
18,970
10.0
9.4
Agency and other government bonds1
151,393
801
80,249
428
88.7
87.1
Total rates trading
4,053,443
21,557
3,627,557
19,398
11.7
11.1
Total trading
$
6,738,250
$
35,827
$
5,940,459
$
31,757
13.4
12.8
Number of U.S. Trading Days3
188
187
Number of U.K. Trading Days4
189
188
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/20241002710827/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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