MarketAxess Announces Expanded Partnership with BlackRock to Deliver Enhanced Connectivity and Efficiency to Global Credit Markets

Rhea-AI Summary

MarketAxess Holdings Inc. (Nasdaq: MKTX) has announced an expansion of its decade-long partnership with BlackRock to enhance connectivity and efficiency in global credit markets. The collaboration will integrate MarketAxess credit trading protocols, pricing, and data into BlackRock's Aladdin® order execution management system (OEMS). This builds on their existing partnership in Open Trading and MarketAxess analytics that began in 2013.

The integration aims to provide common clients of Aladdin and MarketAxess with an improved trading experience through native integration of select MarketAxess credit protocols within the Aladdin platform. The partnership will bring MarketAxess' latest automation protocols, including Adaptive Auto-X, RFQ solutions, Open Trading, and Live Markets central limit order book directly to Aladdin clients.

Positive

• Expanded partnership with BlackRock, a major player in the financial industry
• Integration of MarketAxess trading protocols into BlackRock's Aladdin platform
• Potential for increased adoption of MarketAxess automation protocols
• Enhanced trading experience for common clients of Aladdin and MarketAxess

Negative

• None.

Financial Analyst

This expanded partnership between MarketAxess and BlackRock is a significant development for the fixed-income trading landscape. The integration of MarketAxess's trading protocols, pricing and data into BlackRock's Aladdin platform could enhance liquidity and efficiency in global credit markets. For MarketAxess, this move likely means increased trading volumes and potentially higher revenue, as it exposes their services to a broader client base using Aladdin.

The mention of "increased adoption of automation protocols" with "many clients turning to strategies for over 90% of their trading volumes" suggests a strong trend towards automated trading in fixed-income markets. This could lead to improved operational efficiency and potentially lower costs for both MarketAxess and its clients.

From an investor's perspective, this partnership could strengthen MarketAxess's competitive position in the electronic trading space for fixed-income securities, potentially driving long-term growth and market share gains.

Tech Expert

The integration of MarketAxess's trading protocols into BlackRock's Aladdin platform represents a significant technological advancement in the fixed-income trading ecosystem. This move towards seamless integration could lead to improved user experience and potentially increased trading efficiency for common clients of both platforms.

The mention of "Adaptive Auto-X" suggests the implementation of advanced algorithmic trading capabilities, which could provide a competitive edge in terms of execution speed and price discovery. Furthermore, the inclusion of a "central limit order book" indicates a move towards more transparent and liquid markets.

From a technological standpoint, this partnership could drive innovation in trading technology, potentially leading to the development of more sophisticated trading tools and analytics. It also highlights the growing importance of interoperability between financial platforms, a trend that could shape the future of financial technology.

Market Research Analyst

This partnership expansion signals a continued trend towards electronification in credit markets, which could have far-reaching implications for market structure and liquidity. The integration of MarketAxess's protocols into Aladdin could lead to increased market share for both companies in the electronic trading space.

The mention of "Open Trading" suggests a focus on all-to-all trading models, which could potentially disrupt traditional dealer-centric market structures. This shift could lead to improved price discovery and potentially lower transaction costs for market participants.

From a market perspective, this partnership could accelerate the adoption of electronic trading in fixed-income markets, which have traditionally lagged behind equity markets in terms of electronification. This could lead to increased market efficiency and potentially higher trading volumes, benefiting both MarketAxess and BlackRock in the long run.

NEW YORK--(BUSINESS WIRE)-- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced an expansion of its decade-long partnership with BlackRock to seamlessly integrate MarketAxess credit trading protocols, pricing and data into BlackRock’s Aladdin^® order execution management system (OEMS).

This announcement builds on the MarketAxess and BlackRock partnership in Open Trading and MarketAxess analytics that began in 2013. The new connectivity will provide common clients of Aladdin and MarketAxess with an enhanced trading experience through integration of select MarketAxess credit protocols natively within the Aladdin platform.

“Our two firms have a long-standing relationship and history of successful collaboration to cater to our clients’ liquidity, workflow and data needs. As the market evolves, we’re seeing increased adoption of our automation protocols, with many of our clients turning to our strategies for over 90% of their trading volumes,” said Rich Schiffman, Global Head of Trading Solutions at MarketAxess. “We look forward to bringing the latest of our automation protocols, Adaptive Auto-X, as well as our market leading RFQ solutions, Open Trading, and Live Markets central limit order book directly to Aladdin clients through this partnership.”

Kamya Somasundaram, Global Head of Aladdin Partnerships said: “As the electronification of credit markets continues to accelerate, the demand for robust liquidity, sophisticated workflows, and analytics grows. We are excited to partner with MarketAxess to deliver an improved trading experience for our users.”

BlackRock’s Aladdin technology platform unifies the investment management process by providing a common data language within an organization to enable scale, provide insights, and support business transformation. It combines sophisticated risk analytics with comprehensive portfolio management, trading, operations, and accounting tools on a single, unified platform. BlackRock’s Aladdin platform is a financial technology platform designed for institutional use only and is not intended for end investor use.

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 X @MarketAxess.

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 Page 5 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240909670657/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

Source: MarketAxess Holdings Inc.

FAQ

What is the purpose of the expanded partnership between MarketAxess (MKTX) and BlackRock?

The expanded partnership aims to integrate MarketAxess credit trading protocols, pricing, and data into BlackRock's Aladdin® order execution management system (OEMS) to enhance connectivity and efficiency in global credit markets.

Which MarketAxess (MKTX) features will be integrated into BlackRock's Aladdin platform?

The integration will include MarketAxess' Adaptive Auto-X automation protocol, RFQ solutions, Open Trading, and Live Markets central limit order book.

When did the partnership between MarketAxess (MKTX) and BlackRock begin?

The partnership in Open Trading and MarketAxess analytics began in 2013, making it a decade-long collaboration.

How will this integration benefit MarketAxess (MKTX) and BlackRock clients?

Common clients of Aladdin and MarketAxess will experience an enhanced trading experience through native integration of select MarketAxess credit protocols within the Aladdin platform.