MarketAxess Announces Monthly Volume Statistics for January 2023
MarketAxess Holdings Inc. (Nasdaq: MKTX) reported a record average daily trading volume (ADV) of $14 billion in January 2023, marking a 17% increase from the previous year, driven by strong growth across all credit products. Key highlights include a 14% rise in U.S. high-grade ADV and a record of $3.4 billion in emerging markets ADV. The company's estimated market share in municipal bonds reached 6.6%, up 150 basis points. Despite a decrease in preliminary variable transaction fees per million to $160, MarketAxess sees a favorable macro environment for growth, aided by increasing asset inflows and high industry volumes.
- Record $14 billion total credit ADV, up 17% year-over-year.
- 14% increase in U.S. high-grade ADV to $6.2 billion with 19.5% market share.
- Record emerging markets ADV of $3.4 billion, up 12%.
- 81% increase in municipal bond ADV to $516 million, with market share at 6.6%.
- Estimated price improvement via Open Trading was approximately $71 million.
- Preliminary FPM for total credit decreased to $160 from $165 in December 2022.
“In January, we generated record credit average daily volume of
Open Trading estimated price improvement2 was approximately
We believe that the current operating environment, characterized by increasing asset inflows and higher industry volumes, reflects market participants’ increasing comfort with operating in a higher interest rate environment. We believe that this continued normalization of market conditions creates a favorable macro-backdrop for our model and that our enhanced product and geographic footprint, higher levels of estimated market share, and increasing
Select
-
Record
billion in total credit average daily volume (“ADV”), up$14.0 17% from billion in the prior year.$12.0 -
14% increase inU.S. high-grade ADV to billion with estimated market share of$6.2 19.5% . The January new issue calendar was robust and credit market volatility declined. -
11% increase inU.S. high-yield ADV to billion with estimated market share of$1.9 16.8% , up from15.3% . -
Record emerging markets ADV of
billion, up$3.4 12% . Emerging markets local markets volume up26% fromJanuary 2022 levels. -
33% increase in Eurobonds ADV to a record billion with$1.9 16.8% (+580 bps) estimated Eurobonds market share, up from11.0% . -
million in municipal bond ADV, up$516 81% , with record estimated market share of6.6% (+150 bps). -
90% of credit volume on the platform was executed by institutional clients. -
35% of total credit trading volume was executed via Open Trading®. Estimated price improvement2 via Open Trading was approximately million, and average estimated price improvement per million was$71 .$809 -
billion in Portfolio Trading volume, up$9.7 80% from billion in the prior year.$5.4 -
The preliminary FPM1 for total credit for
January 2023 was approximately , compared to$160 in$165 December 2022 . The decrease in the preliminary FPM inJanuary 2023 compared toDecember 2022 was driven principally by mix across credit products. The preliminary FPM1 for total rates was , in line with$4.10 December 2022 levels
*All comparisons versus
Table 1:
CREDIT | RATES | ||||||||||
$ in millions
|
US/ |
Total
|
Total
|
High-Grade |
High-Yield |
Emerging
|
Eurobonds |
Municipal Bonds |
Total
|
US Govt.
|
Agcy./Other
|
Jan-23 |
20/21 |
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|
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|
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|
Jan-22 |
20/20 |
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% Change |
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( |
( |
|
Table 1A:
CREDIT | RATES | ||||||
|
High-Grade |
High-Yield |
High-Grade/High-Yield Combined |
Eurobonds |
Composite Corporate Bond4 |
Municipals |
US Govt.
|
Jan-23 |
|
|
|
|
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|
Jan-22 |
|
|
|
|
|
|
|
Bps Change |
(230) bps |
+150 bps |
(100) bps |
+580 bps |
+60 bps |
+150 bps |
+20 bps |
Table 1B: Rolling 6-month trading ADV (period ending
CREDIT | RATES | ||||||||||
$ in millions
|
US/ |
Total
|
Total
|
High-Grade |
High-Yield |
Emerging
|
Eurobonds |
Municipal Bonds |
Total
|
US Govt.
|
Agcy./Other
|
Jan-23 |
125/127 |
|
|
|
|
|
|
|
|
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|
Jan-22 |
125/127 |
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% Change |
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Table 1C: Rolling 6-month estimated market share (period ending
CREDIT | RATES | ||||||
|
High-Grade |
High-Yield |
High-Grade/High-Yield Combined |
Eurobonds |
Composite Corporate Bond4 |
Municipals |
US Govt.
|
Jan-23 |
|
|
|
|
|
|
|
Jan-22 |
|
|
|
|
|
|
|
Bps Change |
(30) bps |
+420 bps |
+110 bps |
+500 bps |
+190 bps |
+220 bps |
+40 bps |
1 The FPM for total credit and total rates for the month of
2 Estimated price improvement consists of estimated liquidity taker price improvement (defined as the difference between the winning price and the best disclosed dealer cover price) and estimated liquidity provider price improvement (defined as the difference between the winning price and then current Composite+ bid or offer level, offer if the provider is buying, bid if provider is selling) at the time of the inquiry.
3 The number of
4 Composite corporate bond estimated market share is defined as combined estimated market share across
Reported
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; 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
About
Table 2: Trading Volume Detail |
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Month Ended |
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In millions (unaudited) |
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2023 |
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2022 |
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% Change |
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Volume |
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ADV |
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Volume |
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ADV |
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Volume |
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ADV |
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Credit |
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High-grade |
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$ |
124,458 |
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$ |
6,223 |
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|
$ |
109,241 |
|
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$ |
5,462 |
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13.9 |
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% |
|
13.9 |
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% |
High-yield |
|
|
|
37,460 |
|
|
|
1,873 |
|
|
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33,595 |
|
|
|
|
1,680 |
|
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11.5 |
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11.5 |
|
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Emerging markets |
|
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68,878 |
|
|
|
3,444 |
|
|
|
61,531 |
|
|
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3,077 |
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11.9 |
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11.9 |
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|
Eurobonds |
|
|
|
40,598 |
|
|
|
1,933 |
|
|
|
28,980 |
|
|
|
|
1,449 |
|
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|
40.1 |
|
|
|
33.4 |
|
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Other credit |
|
|
|
10,536 |
|
|
|
527 |
|
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|
6,001 |
|
|
|
|
300 |
|
|
|
75.6 |
|
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|
75.7 |
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Total credit trading1 |
|
|
|
281,930 |
|
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|
14,000 |
|
|
|
239,348 |
|
|
|
|
11,968 |
|
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|
17.8 |
|
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17.0 |
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Rates |
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442,086 |
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22,104 |
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467,049 |
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23,352 |
|
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(5.3 |
) |
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(5.3 |
) |
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Agency and other government bonds1 |
|
|
|
9,447 |
|
|
|
457 |
|
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|
9,254 |
|
|
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|
449 |
|
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2.1 |
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|
1.8 |
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Total rates trading |
|
|
|
451,533 |
|
|
|
22,561 |
|
|
|
476,303 |
|
|
|
|
23,801 |
|
|
|
(5.2 |
) |
|
|
(5.2 |
) |
|
Total trading |
|
|
$ |
733,463 |
|
|
$ |
36,561 |
|
|
$ |
715,651 |
|
|
|
$ |
35,769 |
|
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|
2.5 |
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2.2 |
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Number of |
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20 |
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20 |
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Number of |
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21 |
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20 |
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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. |
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2 Consistent with industry standards, |
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3 The number of |
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4 The number of |
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230202005926/en/
INVESTOR RELATIONS
+1 212 813 6313
sdavidson2@marketaxess.com
MEDIA RELATIONS
+1 917 267 1232
mmistry@marketaxess.com
RF | Binder
+1 917 239 6726
Source:
FAQ
What was MarketAxess's trading volume in January 2023?
How much did U.S. high-grade ADV increase in January 2023?
What is the estimated market share of municipal bonds for MarketAxess in January 2023?
What was the preliminary variable transaction fee per million for MarketAxess in January 2023?