MarketAxess Announces Monthly Volume Statistics for December 2021

Rhea-AI Summary

MarketAxess Holdings (MKTX) reported December 2021 trading volume of $538.1 billion, with $183.6 billion in credit and $354.5 billion in rates. The preliminary variable transaction fees per million for Q4 were $165 for U.S. high-grade and $192 for other credit. Market share insights revealed a peak U.S. high-grade share of 23.6%, despite a 12% year-over-year volume decline. U.S. Treasury bond volume surged 32% year-over-year, while municipal bonds rose 17%. Portfolio trading volume also increased to $13.1 billion.

Positive

• U.S. high-grade market share reached 23.6%, the second-best month ever.
• Record estimated U.S. high yield market share of 18.3%, up from 14.6% in November.
• Emerging markets trading volume increased by 12% year-over-year.
• U.S. Treasury bond volume grew by 32% year-over-year.
• Municipal bond volume rose by 17% year-over-year.
• Quarterly portfolio trading volume reached $13.1 billion, a notable increase from $8.9 billion.

Negative

• Overall estimated market volume down 12% year-over-year.
• U.S. high yield estimated market volume down 18% year-over-year.
• Estimated Eurobond market volume decreased by 25% year-over-year.
• Municipal bond estimated market volume down 17% year-over-year.

NEW YORK, Jan. 05, 2022 (GLOBE NEWSWIRE) -- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced monthly trading volume for December 2021 of $538.1 billion consisting of $183.6 billion in credit volume and $354.5 billion in rates volume.

The Company also reported preliminary variable transaction fees per million (“FPM”) for the quarter ended December 31, 2021 of $165 for U.S. high-grade, $192 for other credit, $180 for total credit and $3.90 for rates. The FPM for the quarter ended December 31, 2021 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.

December and fourth quarter highlights included:

• Estimated U.S. high grade market share reached the second-best month ever at 23.6%, up from 20.9% in November, despite tightening credit spreads during the month; estimated market volume down 12% year-over-year.
  
  
• Record estimated U.S. high yield market share of 18.3%, up from 14.6% in November; increased ETF client activity contributed to the share gains; estimated market volume down 18% year-over-year.
  
  
• Emerging markets trading volume up 12% year-over-year; estimated market volume down 11% year-over-year.
  
  
• Record estimated Eurobond market share of 14.4%, up from 13.3% in November; estimated market volume down 25% year-over-year.
  
  
• U.S. Treasury bond volume of $349.4 billion, up 32% year-over-year; estimated market volume up 18% year-over-year.
  
  
• MarketAxess municipal bond volume of $1.8 billion, up 17% year-over-year; estimated market volume down 17% year-over-year.
  
  
• Record quarterly portfolio trading volume of $13.1 billion, up from $8.9 billion in the third quarter.
  
  
• 92% of total credit volume during the quarter was conducted with institutional investors.

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.cfm

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for Company 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; risks related to the U.K. exit from the European Union; 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; 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 cyber security risks; 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; 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 operates a leading, institutional electronic trading platform delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. A global network of over 1,800 firms, including the world’s leading asset managers and institutional broker-dealers, leverages MarketAxess’ patented trading technology to efficiently trade bonds. MarketAxess’ award-winning Open Trading® marketplace is regarded as the preferred all-to-all trading solution in the global credit markets, creating a unique liquidity pool for a broad range of credit market participants. Drawing on its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services. For more information, please visit www.marketaxess.com.

Investor Relations Contact:	Media Relations Contacts:
David Cresci MarketAxess Holdings Inc. +1-212-813-6027	Kyle White MarketAxess Holdings Inc. +1-212-813-6355
	William McBride RF | Binder +1-917-239-6726

MarketAxess Holdings Inc.
Monthly Volume Statistics

	Average Daily Volume									Total Trading Volume
	Dec-21			Dec-20			% Change			Dec-21			Dec-20			% Change
	($ in millions)
U.S High-Grade
Fixed Rate	$	3,865		$	4,636		-16.6	%		$	85,023		$	102,001		-16.6	%
Floating Rate		159			205		-22.4	%			3,500			4,502		-22.3	%
Total U.S. High-Grade		4,024	-		4,841		-16.9	%			88,523			106,503		-16.9	%
Other Credit
U.S. High-Yield		1,248			1,386		-10.0	%			27,466			30,488		-9.9	%
Emerging Markets		2,151			1,922		11.9	%			47,324			42,288		11.9	%
Eurobonds		867			1,074		-19.3	%			18,199			22,560		-19.3	%
Other Credit Products		96			77		24.7	%			2,102			1,686		24.7	%
Total Other Credit		4,362			4,459		-2.2	%			95,091			97,022		-2.0	%
Total Credit1		8,386			9,300		-9.8	%			183,614			203,525		-9.8	%
Rates
U.S. Government Bonds 2		15,882			12,054		31.8	%			349,408			265,188		31.8	%
Agencies and Other Government Bonds 1		237			162		46.3	%			5,103			3,561		43.3	%
Total Rates		16,119			12,216		31.9	%			354,511			268,749		31.9	%
Number of U.S. Trading Days 3		22			22
Number of U.K. Trading Days 4		21			21
NOTES:
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 on the U.K. Bank holiday schedule.

MarketAxess Holdings Inc.
Quarterly Volume Statistics

	Average Daily Volume									Total Trading Volume
	4Q21			4Q20			% Change			4Q21			4Q20			% Change
	($ in millions)
U.S High-Grade
Fixed Rate	$	4,293		$	4,928		-12.9	%		$	266,182		$	305,537		-12.9	%
Floating Rate		189			209		-9.6	%			11,709			12,956		-9.6	%
Total U.S. High-Grade		4,482			5,137		-12.8	%			277,891			318,493		-12.7	%
Other Credit
U.S. High-Yield		1,355			1,576		-14.0	%			84,004			97,691		-14.0	%
Emerging Markets		2,590			2,255		14.9	%			160,560			139,827		14.8	%
Eurobonds		1,169			1,225		-4.6	%			74,817			78,419		-4.6	%
Other Credit Products		115			84		36.9	%			7,131			5,198		37.2	%
Total Other Credit		5,229			5,140		1.7	%			326,512			321,135		1.7	%
Total Credit1		9,711			10,277		-5.5	%			604,403			639,628		-5.5	%
Rates
U.S. Government Bonds 2		19,087			13,128		45.4	%			1,183,410			813,921		45.4	%
Agencies and Other Government Bonds 1		360			199		80.9	%			22,685			12,355		83.6	%
Total Rates		19,447			13,327		45.9	%			1,206,095			826,276		46.0	%
Number of U.S. Trading Days 3		62			62
Number of U.K. Trading Days 4		64			64
NOTES:
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 on the U.K. Bank holiday schedule.

FAQ

What was MarketAxess' trading volume for December 2021?

MarketAxess reported a trading volume of $538.1 billion for December 2021.

How did MarketAxess perform in the U.S. high-grade market in December 2021?

MarketAxess achieved a U.S. high-grade market share of 23.6%, marking the second-best month ever.

What were the preliminary transaction fees for MarketAxess in Q4 2021?

Preliminary variable transaction fees for Q4 2021 were $165 for U.S. high-grade and $192 for other credit.

What was the year-over-year change in U.S. Treasury bond volume for December 2021?

U.S. Treasury bond volume increased by 32% year-over-year in December 2021.

How much did MarketAxess' portfolio trading volume increase in Q4 2021?

Quarterly portfolio trading volume rose to $13.1 billion, up from $8.9 billion in the previous quarter.