Record 4Q23 Portfolio Trading Volume, Up
36%; Record $33.4 Billion in Municipal Bonds Trading Volume
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 fourth quarter ended
December 31, 2023.1
Chris Concannon, CEO of MarketAxess, commented:
“In the fourth quarter of 2023, total credit ADV increased
approximately 9% compared to the prior year and increased
18% from 3Q23 levels, which benefited from record
portfolio trading and record municipal bond trading volume.
Client engagement with MarketAxess X-Pro, our unique proprietary
data products and our automated solutions continues to build, and
we believe that the strong market volumes in 4Q23 reflect an
improving market backdrop as we begin 2024.”
Select 4Q23 highlights*
- Total credit average daily trading volume (“ADV”) of $13.1
billion, up 8.9% versus the prior year, and up
17.5% versus 3Q23 levels.
- U.S. high-grade ADV of $6.2 billion, up
13.3% from the prior year, and up 20.0% versus 3Q23.
Estimated market share of 20.9%, down slightly from
21.1% in the prior year, and up from 20.0% in 3Q23.
U.S. high-grade estimated market ADV increased 13.9%,
compared to the prior year, and was up 14.7% versus
3Q23.
- U.S. high-yield ADV of $1.7 billion, down 8.4%
compared to the prior year, but up 27.8% from 3Q23 levels.
Estimated market share of 17.2%, down from 20.5% in
the prior year, but up from 16.1% in 3Q23. U.S. high-yield
estimated market ADV increased 9.0% versus the prior year,
and increased 19.4% compared to 3Q23. The decrease in U.S.
high-yield estimated market share year-over-year was driven
principally by an estimated 18.6% decrease in ETF market
maker activity on the platform.
- Emerging markets ADV of $2.9 billion, up 9.8%
from the prior year, and up 4.6% from 3Q23 levels. The
year-over-year increase was principally due to a 25.6%
increase in local currency trading ADV. Emerging markets estimated
market ADV increased 12.1%, compared to the prior year, and
increased 4.2% compared to 3Q23.2
- Eurobonds ADV of $1.8 billion, up 12.6% from the
prior year, and up 19.1% from 3Q23.
- Record municipal bond ADV of $539 million, up
7.8% from the prior year, and up 38.9% from 3Q23.
Estimated market share of 5.8%, up from 5.0% in the
prior year and in line with 3Q23 levels. Estimated market ADV down
7.0% compared to the prior year, but up 38.5%
compared to 3Q23.
- AxessIQ, the order and execution workflow solution
designed for wealth management and private banking clients,
achieved record ADV of $140.6 million, up
67.0% from the prior year, and up 41.9% from 3Q23
levels.
- Record $41.8 billion in total portfolio trading volume,
up 35.8% from the prior year, and up 52.1% from 3Q23.
Approximately $11.6 billion, or 30.3%, of our
portfolio trading volume (in-competition only) was executed over
MarketAxess X-Pro, our new trading platform, compared to
approximately $4.8 billion, or 18.2%, in 3Q23.
- 36% Open Trading® share3 of total credit trading volume,
down from 38% in the prior year, but up from 34% in
3Q23.
- Total rates ADV of $16.5 billion, down 10.1%
versus the prior year, and down 8.8% from 3Q23 levels.
- The preliminary FPM1 for total credit for 4Q23 was
approximately $156, compared to $164 in the prior
year, and $155 in 3Q23. The decline in total credit FPM
compared to the prior year was due principally to product and
protocol mix shift. The preliminary FPM for total rates was
$4.50, compared to $4.16 in the prior year.
*All comparisons versus 4Q22 unless otherwise noted.
Table 1: December 2023 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
Dec-23
20/19
$26,994
$12,262
$6,133
$1,412
$2,649
$1,580
$480
$14,732
$14,380
$352
Dec-22
21/20
$27,191
$10,613
$5,069
$1,557
$2,148
$1,350
$473
$16,578
$16,235
$343
% Change
(1%)
16%
21%
(9%)
23%
17%
1%
(11%)
(11%)
3%
Table 1A: December 2023 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Eurobonds5
Composite Corporate
Bond6
Municipals
US Govt. Bonds
Dec-23
22.1%
18.2%
21.3%
16.7%
20.8%
6.5%
2.0%
Dec-22
23.4%
21.4%
22.9%
19.6%
22.8%
5.5%
3.1%
Bps Change
(130) bps
(320) bps
(160) bps
(290) bps
(200) bps
+100 bps
(110) bps
Table 1B: 4Q23 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
4Q23
62/63
$29,641
$13,108
$6,215
$1,653
$2,927
$1,767
$539
$16,533
$16,106
$427
4Q22
61/63
$30,424
$12,042
$5,487
$1,805
$2,666
$1,569
$500
$18,382
$18,026
$356
% Change
(3%)
9%
13%
(8%)
10%
13%
8%
(10%)
(11%)
20%
Table 1C: 4Q23 estimated market share
CREDIT RATES (unaudited)
High-Grade
High-Yield
High-Grade/High-Yield
Combined
Eurobonds5
Composite Corporate
Bond6
Municipals
US Govt. Bonds
4Q23
20.9%
17.2%
20.0%
15.7%
19.4%
5.8%
2.3%
4Q22
21.1%
20.5%
20.9%
18.2%
20.9%
5.0%
3.1%
Bps Change
(20) bps
(330) bps
(90) bps
(250) bps
(150) bps
+80 bps
(80) bps
1
The FPM for total credit and
total rates for 4Q23 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 60%
of total emerging markets) and FINRA TRACE-reportable emerging
markets trading volume, principally U.S. dollar denominated
corporates.
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.
5
Eurobonds estimated market ADV
and estimated market share are derived from MarketAxess TraX data
for Eurobonds and covered bonds market trading volume, which is
currently estimated to represent approximately 80% of the total
European market.
6
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.
General Notes Regarding the Data Presented
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.
For periods beginning with January 2024, the Company will be
making 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, will provide more accurate
measures of estimated market volumes and estimated market share.
Prior comparable periods will be recast retrospectively for both
Municipal and U.S. Government Bonds to conform to the updated
presentation of the data. Beginning in January 2024, the new
estimated market volume data will also be 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 December
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
122,656
$
6,133
$
106,454
$
5,069
15.2
%
21.0
%
High-yield
28,248
1,412
32,694
1,557
(13.6
)
(9.3
)
Emerging markets
52,988
2,649
45,101
2,148
17.5
23.3
Eurobonds
30,025
1,580
27,007
1,350
11.2
17.0
Other credit
9,762
488
10,274
489
(5.0
)
(0.2
)
Total credit trading1
243,679
12,262
221,530
10,613
10.0
15.5
Rates
U.S. government bonds2
287,590
14,380
340,932
16,235
(15.6
)
(11.4
)
Agency and other government bonds1
6,830
352
7,018
343
(2.7
)
2.6
Total rates trading
294,420
14,732
347,950
16,578
(15.4
)
(11.1
)
Total trading
$
538,099
$
26,994
$
569,480
$
27,191
(5.5
)
(0.7
)
Number of U.S. Trading Days3
20
21
Number of U.K. Trading Days4
19
20
Quarter Ended December
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
385,301
$
6,215
$
334,735
$
5,487
15.1
%
13.3
%
High-yield
102,501
1,653
110,091
1,805
(6.9
)
(8.4
)
Emerging markets
181,445
2,927
162,597
2,666
11.6
9.8
Eurobonds
111,330
1,767
98,853
1,569
12.6
12.6
Other credit
33,854
546
31,404
515
7.8
6.0
Total credit trading1
814,431
13,108
737,680
12,042
10.4
8.9
Rates
U.S. government bonds2
998,542
16,106
1,099,596
18,026
(9.2
)
(10.7
)
Agency and other government bonds1
26,684
427
22,138
356
20.5
19.9
Total rates trading
1,025,226
16,533
1,121,734
18,382
(8.6
)
(10.1
)
Total trading
$
1,839,657
$
29,641
$
1,859,414
$
30,424
(1.1
)
(2.6
)
Number of U.S. Trading Days3
62
61
Number of U.K. Trading Days4
63
63
Table 2: Trading Volume Detail
(continued)
Year-to-Date Ended December
31,
In millions (unaudited)
2023
2022
% Change
Volume
ADV
Volume
ADV
Volume
ADV
Credit
High-grade
$
1,457,559
$
5,854
$
1,364,530
$
5,480
6.8
%
6.8
%
High-yield
398,275
1,599
424,812
1,706
(6.2
)
(6.3
)
Emerging markets
717,877
2,883
693,560
2,785
3.5
3.5
Eurobonds
441,171
1,758
362,713
1,451
21.6
21.2
Other credit
112,451
451
99,225
398
13.3
13.3
Total credit trading1
3,127,333
12,545
2,944,840
11,820
6.2
6.1
Rates
U.S. government bonds2
4,545,850
18,256
5,347,607
21,476
(15.0
)
(15.0
)
Agency and other government bonds1
106,933
427
96,782
388
10.5
10.1
Total rates trading
4,652,783
18,683
5,444,389
21,864
(14.5
)
(14.5
)
Total trading
$
7,780,116
$
31,228
$
8,389,229
$
33,684
(7.3
)
(7.3
)
Number of U.S. Trading Days3
249
249
Number of U.K. Trading Days4
251
250
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/20240103998369/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
MarketAxess (NASDAQ:MKTX)
Historical Stock Chart
From Apr 2024 to May 2024
MarketAxess (NASDAQ:MKTX)
Historical Stock Chart
From May 2023 to May 2024