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MarketAxess Announces Monthly Volume Statistics for March and First Quarter 2024

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MarketAxess Holdings Inc. (MKTX) achieves record quarterly total credit trading ADV of $15.0 billion in Q1 2024. The company reports significant increases in U.S. high-grade, emerging markets, and Eurobonds ADV. However, U.S. high-yield trading activity declines due to low credit spread volatility. MarketAxess X-Pro adoption grows, with 12.5% of U.S. credit trading volume executed on the platform. The company also highlights achievements in various product areas and client segments.
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The report from MarketAxess Holdings Inc. presents a detailed overview of trading volumes and market shares in various fixed-income securities segments. The increase in total credit average daily trading volume (ADV) by 9.2% and record highs in U.S. high-grade, emerging markets and Eurobonds ADVs are indicative of the company's growth and operational efficiency in these areas. However, the decline in U.S. high-yield ADV and market share suggests a challenging environment for high-yield credit, potentially due to lower credit spread volatility and a shift in client focus towards new issues. The data also reveals a decrease in ETF market maker activity, which may reflect broader market trends and investor sentiment towards high-yield securities.

From a market share perspective, a decrease in U.S. high-grade and high-yield segments, despite overall trading volume growth, could imply competitive pressures or changes in trading patterns. The increase in municipal bond market share, despite a decrease in ADV, suggests resilience and potential strategic positioning in this segment. The reported decline in total rates ADV points to a possible shift in investor preferences or market conditions affecting interest rate products. The changes in the preliminary variable transaction fees per million (FPM) for total credit and rates also warrant attention, as they may affect the company's revenue structure and pricing strategies.

Overall, these trends and figures are central to understanding MarketAxess' current market position and future prospects, as well as the evolving dynamics of the fixed-income trading landscape, which can have implications for investors and competitors alike.

MarketAxess' financial performance, as indicated by the record trading volumes in several segments, is a positive signal for investors, reflecting the company's capability to capture market demand. The growth in emerging markets and Eurobonds, in particular, highlights the company's successful international expansion and diversification efforts. However, the decline in high-yield trading activity and the associated decrease in market share raise concerns about the company's performance in that segment and may warrant a closer look at the strategies employed to navigate the current market conditions.

Moreover, the reduction in FPM for total credit could have implications for the company's revenue, considering that transaction fees are a significant source of income for electronic trading platforms. The shift in product mix and the impact on FPM should be analyzed to understand the potential effects on the company's profitability. The reported increase in total portfolio trading volume is another important aspect, as it may reflect changing client behavior and the adoption of new trading strategies, which could lead to shifts in revenue streams.

Investors should also consider the changes in methodology for calculating estimated market shares, as these adjustments can affect the comparability of current and historical data. Accurate market share estimates are important for assessing the company's competitive position and growth trajectory.

The trading activity reported by MarketAxess can be seen as a microcosm of broader economic trends, particularly in the fixed-income market. The observed decline in credit spread volatility, especially in the U.S. high-yield segment, may be interpreted as a sign of market stability or investor caution. This could reflect wider economic conditions such as interest rate policies, inflation expectations and overall market liquidity.

Additionally, the substantial increase in U.S. high-yield new issuance suggests a robust appetite for riskier assets, possibly driven by search for yield in a low-interest-rate environment or by specific sectoral growth. The record figures in emerging markets and Eurobonds trading volumes may indicate a growing investor interest in diversifying portfolios internationally, which can be attributed to global economic shifts or regional developments.

It's also noteworthy to consider the impact of technological advancements and digitalization on the fixed-income market. MarketAxess' Open Trading platform and the introduction of MarketAxess X-Pro could be contributing to changes in trading behavior and market structure, with potential long-term implications for liquidity, market efficiency and access to capital.

Record Quarterly Total Credit Trading ADV of $15.0 Billion, Driven by Record U.S. High-Grade ADV of $7.5 Billion, Record Emerging Markets ADV of $3.6 Billion and Record Eurobonds ADV of $2.0 Billion

NEW YORK--(BUSINESS WIRE)-- 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 March and the first quarter ended March 31, 2024.1

Chris Concannon, CEO of MarketAxess, commented:

“In the first quarter, we delivered record total credit ADV of $15.0 billion, driven by an 18.0% increase in U.S. high-grade ADV, a 17.3% increase in emerging markets ADV and a 10.6% increase in Eurobonds ADV. Record levels of ADV across these product areas helped offset significantly lower levels of U.S. high-yield trading activity on the platform, driven by continued low levels of credit spread volatility. The roll-out of MarketAxess X-Pro is continuing and client engagement is increasing with approximately 12.5% of U.S. credit trading volume executed on X-Pro in the quarter.”

Select 1Q24 highlights*

  • Record total credit average daily trading volume (“ADV”) of $15.0 billion, up 9.2%.
  • Record U.S. high-grade ADV of $7.5 billion, up 18.0% on a 21.3% increase in estimated market ADV. Estimated market share of 19.3%, down from 19.9% in the prior year.
  • U.S. high-yield ADV of $1.4 billion, down 29.4%. Estimated market share of 12.9%, down from 18.3% in the prior year. U.S. high-yield estimated market ADV increased 0.5%. We believe the decrease in U.S. high-yield estimated market share year-over-year was driven, in part, by lower levels of credit spread volatility and a greater focus on the new issue calendar by our long only client segment.

— Lower levels of credit spread volatility drove an estimated 54.3% decrease in ETF market maker client activity on the platform, and high-yield ETF notional market volume traded declined 25.2% compared to 1Q23.
U.S. high-yield new issuance was $87.6 billion in 1Q24, up 116.5% from the prior year.

  • Record emerging markets ADV of $3.6 billion, up 17.3%. The year-over-year increase was due to a 13.1% increase in hard currency trading ADV and record local currency markets ADV, up 29.8%.2

— Our Latin America and Asia-Pacific clients generated record levels of ADV in the quarter, up 11.1% and 54.8%, respectively, reflecting continued international expansion.

  • Record Eurobonds ADV of $2.0 billion, up 10.6%.2
  • Municipal bond ADV of $419 million, down 6.4% with estimated market ADV down 18.5%. Estimated market share of 6.5%, up from 5.7% in the prior year.2
  • AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $140.1 million, up 22.2% from the prior year.
  • Record $44.2 billion in total portfolio trading volume, up 40.6%.
  • 34% Open Trading® share3 of total credit trading volume, down from 37% in the prior year.
  • Total rates ADV of $17.7 billion, down 27.9% versus the prior year.
  • The preliminary FPM1 for total credit for 1Q24 was approximately $154, compared to $165 in the prior year, and $156 in 4Q23. The decline in total credit FPM compared to the prior year was due principally to product mix shift. The preliminary FPM for total rates was approximately $4.70, compared to $4.12 in the prior year.

*All comparisons versus 1Q23 unless otherwise noted.

Table 1: March 2024 trading ADV

CREDIT RATES
$ in millions
(unaudited)
US/UK Trading Days4 Total
ADV
Total
Credit
High-Grade High-Yield Emerging
Markets
Eurobonds Municipal Bonds Total
Rates
US Govt.
Bonds
Agcy./Other
Govt. Bonds
Mar-24

20/20

$

31,831

 

$

14,814

 

$

7,233

 

$

1,361

 

$

3,533

 

$

2,255

 

$

417

 

$

17,017

 

$

16,450

 

$

567

 

Mar-23

23/23

$

39,882

 

$

12,882

 

$

6,128

 

$

1,823

 

$

2,685

 

$

1,824

 

$

401

 

$

27,000

 

$

26,602

 

$

398

 

% Change

 

(20

%)

 

15

%

 

18

%

 

(25

%)

 

32

%

 

24

%

 

4

%

 

(37

%)

 

(38

%)

 

42

%

Table 1A: March 2024 estimated market share

CREDIT RATES

(unaudited)
High-Grade High-Yield High-Grade/High-Yield Combined Municipals2 US Govt.
Bonds2
Mar-24

19.3

%

12.7

%

17.9

%

6.6

%

2.0

%

Mar-23

19.9

%

18.9

%

19.7

%

5.6

%

3.0

%

Bps Change

(60) bps

(620) bps

(180) bps

+100 bps

(100) bps

Table 1B: 1Q24 trading ADV

CREDIT RATES
$ in millions
(unaudited)
US/UK Trading Days4 Total
ADV
Total
Credit
High-Grade High-Yield Emerging
Markets
Eurobonds Municipal Bonds Total
Rates
US Govt.
Bonds
Agcy./Other
Govt. Bonds

1Q24

61/63

$

32,632

 

$

14,982

 

$

7,475

 

$

1,400

 

$

3,630

 

$

2,045

 

$

419

 

$

17,650

 

$

17,144

 

$

506

 

1Q23

62/64

$

38,202

 

$

13,721

 

$

6,334

 

$

1,982

 

$

3,094

 

$

1,849

 

$

447

 

$

24,481

 

$

24,053

 

$

428

 

% Change

 

(15

%)

 

9

%

 

18

%

 

(29

%)

 

17

%

 

11

%

 

(6

%)

 

(28

%)

 

(29

%)

 

18

%

Table 1C: 1Q24 estimated market share

CREDIT RATES

(unaudited)
High-Grade High-Yield High-Grade/High-Yield Combined Municipals2 US Govt.
Bonds2

1Q24

19.3

%

12.9

%

17.9

%

6.5

%

2.0

%

1Q23

19.9

%

18.3

%

19.5

%

5.7

%

3.0

%

Bps Change

(60) bps

 

(540) bps

(160) bps

+80 bps

(100) bps

1 The FPM for total credit and total rates for 1Q24 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 See “General Notes Regarding the Data Presented” below.

3 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.

4 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 is no longer 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; 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 March 31,

 

 

In millions (unaudited)

 

 

2024

 

 

2023

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

144,659

 

 

$

7,233

 

 

$

140,951

 

 

 

$

6,128

 

 

 

2.6

 

%

 

18.0

 

%

High-yield

 

 

 

27,228

 

 

 

1,361

 

 

 

41,930

 

 

 

 

1,823

 

 

 

(35.1

)

 

 

(25.3

)

 

Emerging markets

 

 

 

70,661

 

 

 

3,533

 

 

 

61,746

 

 

 

 

2,685

 

 

 

14.4

 

 

 

31.6

 

 

Eurobonds

 

 

 

45,108

 

 

 

2,255

 

 

 

41,960

 

 

 

 

1,824

 

 

 

7.5

 

 

 

23.6

 

 

Other credit

 

 

 

8,650

 

 

 

432

 

 

 

9,710

 

 

 

 

422

 

 

 

(10.9

)

 

 

2.4

 

 

Total credit trading1

 

 

 

296,306

 

 

 

14,814

 

 

 

296,297

 

 

 

 

12,882

 

 

 

-

 

 

 

15.0

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

329,008

 

 

 

16,450

 

 

 

611,850

 

 

 

 

26,602

 

 

 

(46.2

)

 

 

(38.2

)

 

Agency and other government bonds1

 

 

 

11,360

 

 

 

567

 

 

 

9,147

 

 

 

 

398

 

 

 

24.2

 

 

 

42.5

 

 

Total rates trading

 

 

 

340,368

 

 

 

17,017

 

 

 

620,997

 

 

 

 

27,000

 

 

 

(45.2

)

 

 

(37.0

)

 

Total trading

 

 

$

636,674

 

 

$

31,831

 

 

$

917,294

 

 

 

$

39,882

 

 

 

(30.6

)

 

 

(20.2

)

 

Number of U.S. Trading Days3

 

 

 

 

 

 

20

 

 

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

20

 

 

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter and Year-to-Date Ended March 31,

 

 

In millions (unaudited)

 

 

2024

 

 

2023

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

455,998

 

 

$

7,475

 

 

$

392,715

 

 

 

$

6,334

 

 

 

16.1

 

%

 

18.0

 

%

High-yield

 

 

 

85,379

 

 

 

1,400

 

 

 

122,873

 

 

 

 

1,982

 

 

 

(30.5

)

 

 

(29.4

)

 

Emerging markets

 

 

 

221,427

 

 

 

3,630

 

 

 

191,841

 

 

 

 

3,094

 

 

 

15.4

 

 

 

17.3

 

 

Eurobonds

 

 

 

128,849

 

 

 

2,045

 

 

 

118,366

 

 

 

 

1,849

 

 

 

8.9

 

 

 

10.6

 

 

Other credit

 

 

 

26,335

 

 

 

432

 

 

 

28,683

 

 

 

 

462

 

 

 

(8.2

)

 

 

(6.5

)

 

Total credit trading1

 

 

 

917,988

 

 

 

14,982

 

 

 

854,478

 

 

 

 

13,721

 

 

 

7.4

 

 

 

9.2

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

1,045,796

 

 

 

17,144

 

 

 

1,491,292

 

 

 

 

24,053

 

 

 

(29.9

)

 

 

(28.7

)

 

Agency and other government bonds1

 

 

 

31,626

 

 

 

506

 

 

 

27,061

 

 

 

 

428

 

 

 

16.9

 

 

 

18.2

 

 

Total rates trading

 

 

 

1,077,422

 

 

 

17,650

 

 

 

1,518,353

 

 

 

 

24,481

 

 

 

(29.0

)

 

 

(27.9

)

 

Total trading

 

 

$

1,995,410

 

 

$

32,632

 

 

$

2,372,831

 

 

 

$

38,202

 

 

 

(15.9

)

 

 

(14.6

)

 

Number of U.S. Trading Days3

 

 

 

 

 

 

61

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

63

 

 

 

 

 

 

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

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

Source: MarketAxess Holdings Inc.

MarketAxess Holdings Inc. achieved a record total credit trading ADV of $15.0 billion in Q1 2024.

The record total credit ADV was driven by significant increases in U.S. high-grade, emerging markets, and Eurobonds ADV.

The decline in U.S. high-yield trading activity was attributed to low levels of credit spread volatility.

Approximately 12.5% of U.S. credit trading volume was executed on MarketAxess X-Pro in Q1 2024.

Latin America and Asia-Pacific clients generated record levels of ADV in the quarter, up 11.1% and 54.8%, respectively.
MarketAxess Holdings Inc.

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About MKTX

marketaxess operates a leading electronic trading platform that enables fixed-income market participants to efficiently trade corporate bonds and other types of fixed-income instruments using marketaxess’ patented trading technology. over 1,300 institutional investor and broker-dealer firms are active users of the marketaxess trading platform, accessing global liquidity in u.s. high-grade corporate bonds, emerging markets and high-yield bonds, leveraged loans, european bonds, u.s. agency bonds, municipal bonds, credit default swaps and other fixed-income securities. our "all-to-all"​ market for corporate bonds, open trading™, allows investment managers, broker-dealers at investment banks and other market participants to trade directly with one another electronically on an anonymous basis. marketaxess also offers a number of trading-related products and services, including: market data to assist clients with trading decisions; connectivity solutions that facilitate straight-through proc