MarketAxess Announces Monthly Volume Statistics for June and Second Quarter 2024
MarketAxess Holdings announced its trading volume and preliminary variable transaction fees for June and Q2 2024. Total average daily volume (ADV) rose 22.8% year-over-year to $34.2 billion in Q2, driven by a 12.4% increase in total credit ADV to $13.7 billion and a 30.9% rise in total rates ADV. U.S. high-grade ADV climbed 13.0% to $6.4 billion, though market share dipped to 18.7% from 20.7% a year ago. U.S. high-yield ADV fell 9.3% to $1.3 billion, with market share declining to 13.5% from 16.5%. Emerging markets ADV surged 23.0% to $3.3 billion, driven by a 25.6% rise in hard currency ADV. Municipal bond ADV jumped 34.2% to $522 million. The preliminary FPM for total credit dropped to $148 from $157 a year ago. Rates ADV increased 30.9% to $20.4 billion, with the preliminary FPM for total rates at $4.50, down from $4.70.
- Total ADV up 22.8% year-over-year to $34.2 billion in Q2.
- Total credit ADV increased 12.4% to $13.7 billion in Q2.
- Total rates ADV surged 30.9% to $20.4 billion in Q2.
- Emerging markets ADV up 23.0% driven by a 25.6% rise in hard currency ADV.
- Municipal bond ADV rose 34.2% to $522 million.
- Record $55.0 billion in total portfolio trading volume, up 142.8% year-over-year.
- U.S. high-grade market share fell to 18.7% from 20.7% a year ago.
- U.S. high-yield ADV decreased 9.3% to $1.3 billion.
- U.S. high-yield market share declined to 13.5% from 16.5% a year ago.
- Preliminary FPM for total credit dropped to $148 from $157 a year ago.
Insights
MarketAxess Holdings Inc. reported significant growth in trading volumes for June and the second quarter of 2024. The total average daily volume (ADV) for June was
The rising volumes, especially in U.S. high-grade and emerging markets, suggest strong market demand and liquidity, which is promising for future growth. However, investors should note the mixed performance in market share across different segments. For instance, while the market share for U.S. high-grade bonds was
In summary, the overall increase in trading volumes and the strategic expansion in product offerings like X-Pro could drive long-term growth. However, the decline in FPM and market share in certain segments warrants cautious optimism.
The data reveals a robust growth in MarketAxess's trading volumes across various segments, with municipal bonds showing notable performance, up
Notably, the strong growth in emerging markets ADV (
However, the drop in market share for U.S. high-yield bonds (from
Chris Concannon, CEO of MarketAxess, commented:
“In the second quarter, we delivered
Select June 2024 highlights*
-
Total average daily volume (“ADV”) of
$36.5 billion 33.8% (+13.5% compared to May 2024) on strong growth in total credit ADV to$14.0 billion 14.3% (+5.0% compared to May 2024), and a49.8% increase in total rates ADV (+19.4% compared to May 2024).
-
U.S. high-grade ADV of$6.6 17.0% (+8.2% compared to May 2024) on a21.2% increase in estimated market ADV (+1.2% compared to May 2024). Estimated market share was19.9% (20.2% including single-dealer portfolio trades),2 down from20.6% (20.7% including single-dealer portfolio trades) in the prior year, but up from18.6% (19.2% including single-dealer portfolio trades) in May 2024.2 -
U.S. high-yield ADV of$1.3 billion 13.8% (down5.2% compared to May 2024), with estimated market share of13.9% (14.1% including single-dealer portfolio trades),2 down from16.3% (16.4% including single-dealer portfolio trades) in the prior year, but up from12.8% (13.1% including single-dealer portfolio trades) in May 2024.2U.S. high-yield estimated market ADV increased1.1% compared to the prior year, but decreased12.7% compared to May 2024.
Other Credit
-
Emerging markets ADV of
$3.6 billion 17.9% (+17.1% compared to May 2024) with strong regional contribution across the LATAM, EMEA and APAC regions. The year-over-year increase was driven by a25.1% increase in hard currency ADV, and record local currency markets ADV, up12.0% . -
Eurobonds ADV of
$2.0 16.1% compared to the prior year, but down11.5% from May 2024. -
Municipal bond ADV of
$549 million 48.4% (down4.9% compared to May 2024), with estimated market ADV down6.2% (down1.1% compared to May 2024). Estimated market share of7.8% , up from4.9% in the prior year, but down from8.1% in May 2024.
Select Protocols and Open Trading®
-
$16.6 billion 104.6% compared to the prior year, but down10.8% from May 2024.3 Approximately55% of our portfolio trading volume was executed on X-Pro in June 2024. -
34% Open Trading share4 of total credit trading volume, up from33% in the prior year, and in line with May 2024.
Rates
-
Total rates ADV of
$22.5 billion 49.8% versus the prior year, and up19.4% from May 2024.
Variable Transaction Fees Per Million (FPM)
-
The preliminary FPM1 for total credit for June 2024 was approximately
$148 $156 $149 U.S. high-yield activity and increased portfolio trading. The preliminary FPM for total rates was approximately$4.40 $4.58
*All comparisons versus June 2023 unless otherwise noted.
Select 2Q24 highlights**
-
Total ADV of
$34.2 billion 22.8% on strong growth in total credit ADV to$13.7 billion 12.4% , and a30.9% increase in total rates ADV.
-
U.S. high-grade ADV of$6.4 13.0% on a24.9% increase in estimated market ADV. Estimated market share was18.7% (19.2% including single-dealer portfolio trades),2 down from20.7% (20.8% including single-dealer portfolio trades).2 -
U.S. high-yield ADV of$1.3 billion 9.3% , with estimated market share of13.5% (13.8% including single-dealer portfolio trades),2 down from16.5% (16.6% including single-dealer portfolio trades).2U.S. high-yield estimated market ADV increased11.1% . We believe the decrease inU.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
37.1% decrease in ETF market maker client activity on the platform. -
U.S. high-yield new issuance was$77.9 billion 43.9% from the prior year.
-
Lower levels of credit spread volatility drove an estimated
Other Credit
-
Emerging markets ADV of
$3.3 billion 23.0% with strong regional contribution across the LATAM, EMEA and APAC regions. The increase was driven by a25.6% increase in hard currency ADV, and a17.4% increase in local markets ADV.-
91% increase in hard currency block trading activity. -
Record
$4.7 billion
-
-
Eurobonds ADV of
$2.1 8.3% . -
Municipal bond ADV of
$522 million 34.2% , with estimated market ADV down2.1% . Record estimated market share of7.4% , up from5.4% in the prior year.
Select Protocols, Open Trading & Workflow Tools
-
Record
$55.0 billion 142.8% compared to the prior year, and up24.4% from 1Q24.3 A record56% of our portfolio trading volume was executed on X-Pro. -
34% Open Trading share4 of total credit trading volume, in line with the prior year. -
Dealer RFQ ADV of
$1.2 billion 27.3% . -
AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of
$135 million 22.5% from the prior year.
Rates
-
Total rates ADV of
$20.4 billion 30.9% versus the prior year.
Variable Transaction Fees Per Million (FPM)
-
The preliminary FPM1 for total credit for 2Q24 was approximately
$148 $157 $154 U.S. high-yield activity and increased portfolio trading. The preliminary FPM for total rates was approximately$4.50 $4.70
**All comparisons versus 2Q23 unless otherwise noted.
Table 1: June 2024 ADV
| CREDIT | RATES | ||||||||||
$ in millions (unaudited) |
US/ |
Total ADV | Total Credit | High-Grade | High-Yield | Emerging Markets | Eurobonds | Municipal Bonds | Total Rates | US Govt. Bonds | Agcy./Other Govt. Bonds |
Jun-24 |
19/20 |
|
|
|
|
|
|
|
|
|
|
Jun-23 |
21/22 |
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
( |
|
|
|
|
|
|
Table 1A: June 2024 estimated market share
| CREDIT | RATES | ||||
| (unaudited) | High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals3 | US Govt. Bonds3 |
Jun-24 |
|
|
|
|
|
Jun-23 |
|
|
|
|
|
Bps Change |
(70) bps |
(240) bps |
(100) bps |
+290 bps |
+30 bps |
Table 1B: 2Q24 ADV
| CREDIT | RATES | ||||||||||
| $ in millions (unaudited) | US/ |
Total ADV | Total Credit | High-Grade | High-Yield | Emerging Markets | Eurobonds | Municipal Bonds | Total Rates | US Govt. Bonds | Agcy./Other Govt. Bonds |
2Q24 |
63/61 |
|
|
|
|
|
|
|
|
|
|
2Q23 |
62/60 |
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
( |
|
|
|
|
|
|
Table 1C: 2Q24 estimated market share
| CREDIT | RATES | ||||
| (unaudited) | High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals3 | US Govt. Bonds3 |
2Q24 |
|
|
|
|
|
2Q23 |
|
|
|
|
|
Bps Change |
(200) bps |
(300) bps |
(210) bps |
+200 bps |
+20 bps |
1 The FPM for total credit and total rates for June 2024 and 2Q24 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 The Company is highlighting the impact of single-dealer portfolio trading volume on
3 See “General Notes Regarding the Data Presented” below.
4 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.
5 The number of
General Notes Regarding the Data Presented
Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and the Financial Industry Regulatory Authority (“FINRA”) Trade Reporting and Compliance Engine (“TRACE”) reported volumes are available on the Company’s website at investor.marketaxess.com/volume.
Due to variances in how portfolio trading market participants utilized the portfolio trading TRACE “flag,” the Company previously used its own internal methodology for calculating portfolio trading as an estimated percentage of TRACE volume and the Company’s estimated market share. The Company is reviewing recent improvements in the TRACE data, but it now believes that the portfolio trading TRACE “flag” more accurately reflects the true size of the portfolio trading market. As such, at this time, the Company is not presenting portfolio trading as an estimated percentage of TRACE volume or the Company’s portfolio trading estimated market share for June 2024.
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
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
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 |
|
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|
Month Ended June 30, |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
125,814 |
|
|
$ |
6,622 |
|
|
$ |
118,868 |
|
|
|
$ |
5,660 |
|
|
|
5.8 |
|
% |
|
17.0 |
|
% |
High-yield |
|
|
|
23,788 |
|
|
|
1,252 |
|
|
|
30,509 |
|
|
|
|
1,453 |
|
|
|
(22.0 |
) |
|
|
(13.8 |
) |
|
Emerging markets |
|
|
|
68,426 |
|
|
|
3,601 |
|
|
|
64,103 |
|
|
|
|
3,053 |
|
|
|
6.7 |
|
|
|
17.9 |
|
|
Eurobonds |
|
|
|
40,231 |
|
|
|
2,012 |
|
|
|
38,124 |
|
|
|
|
1,733 |
|
|
|
5.5 |
|
|
|
16.1 |
|
|
Other credit |
|
|
|
10,608 |
|
|
|
559 |
|
|
|
8,105 |
|
|
|
|
385 |
|
|
|
30.9 |
|
|
|
45.2 |
|
|
Total credit trading1 |
|
|
|
268,867 |
|
|
|
14,046 |
|
|
|
259,709 |
|
|
|
|
12,284 |
|
|
|
3.5 |
|
|
|
14.3 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
408,907 |
|
|
|
21,521 |
|
|
|
306,127 |
|
|
|
|
14,577 |
|
|
|
33.6 |
|
|
|
47.6 |
|
|
Agency and other government bonds1 |
|
|
|
18,550 |
|
|
|
934 |
|
|
|
8,990 |
|
|
|
|
415 |
|
|
|
106.3 |
|
|
|
125.1 |
|
|
Total rates trading |
|
|
|
427,457 |
|
|
|
22,455 |
|
|
|
315,117 |
|
|
|
|
14,992 |
|
|
|
35.7 |
|
|
|
49.8 |
|
|
Total trading |
|
|
$ |
696,324 |
|
|
$ |
36,501 |
|
|
$ |
574,826 |
|
|
|
$ |
27,276 |
|
|
|
21.1 |
|
|
|
33.8 |
|
|
Number of |
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
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|
|
Quarter Ended June 30, |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
405,440 |
|
|
$ |
6,436 |
|
|
$ |
353,239 |
|
|
|
$ |
5,697 |
|
|
|
14.8 |
|
% |
|
13.0 |
|
% |
High-yield |
|
|
|
84,248 |
|
|
|
1,337 |
|
|
|
91,390 |
|
|
|
|
1,474 |
|
|
|
(7.8 |
) |
|
|
(9.3 |
) |
|
Emerging markets |
|
|
|
210,205 |
|
|
|
3,337 |
|
|
|
168,257 |
|
|
|
|
2,714 |
|
|
|
24.9 |
|
|
|
23.0 |
|
|
Eurobonds |
|
|
|
128,266 |
|
|
|
2,103 |
|
|
|
116,495 |
|
|
|
|
1,942 |
|
|
|
10.1 |
|
|
|
8.3 |
|
|
Other credit |
|
|
|
33,376 |
|
|
|
530 |
|
|
|
24,729 |
|
|
|
|
399 |
|
|
|
35.0 |
|
|
|
32.8 |
|
|
Total credit trading1 |
|
|
|
861,535 |
|
|
|
13,743 |
|
|
|
754,110 |
|
|
|
|
12,226 |
|
|
|
14.2 |
|
|
|
12.4 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,236,917 |
|
|
|
19,634 |
|
|
|
940,127 |
|
|
|
|
15,163 |
|
|
|
31.6 |
|
|
|
29.5 |
|
|
Agency and other government bonds1 |
|
|
|
48,506 |
|
|
|
792 |
|
|
|
26,721 |
|
|
|
|
439 |
|
|
|
81.5 |
|
|
|
80.4 |
|
|
Total rates trading |
|
|
|
1,285,423 |
|
|
|
20,426 |
|
|
|
966,848 |
|
|
|
|
15,602 |
|
|
|
32.9 |
|
|
|
30.9 |
|
|
Total trading |
|
|
$ |
2,146,958 |
|
|
$ |
34,169 |
|
|
$ |
1,720,958 |
|
|
|
$ |
27,828 |
|
|
|
24.8 |
|
|
|
22.8 |
|
|
Number of |
|
|
|
|
|
|
63 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
61 |
60 |
|||||||||||||||||||||||||
Table 2: Trading Volume Detail (continued) |
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|||||||||||||||||||||||||
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|
Year-to-Date Ended June 30, |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
861,438 |
|
|
$ |
6,947 |
|
|
$ |
745,954 |
|
|
|
$ |
6,016 |
|
|
|
15.5 |
|
% |
|
15.5 |
|
% |
High-yield |
|
|
|
169,627 |
|
|
|
1,368 |
|
|
|
214,263 |
|
|
|
|
1,728 |
|
|
|
(20.8 |
) |
|
|
(20.8 |
) |
|
Emerging markets |
|
|
|
431,632 |
|
|
|
3,481 |
|
|
|
360,098 |
|
|
|
|
2,904 |
|
|
|
19.9 |
|
|
|
19.9 |
|
|
Eurobonds |
|
|
|
257,115 |
|
|
|
2,074 |
|
|
|
234,861 |
|
|
|
|
1,894 |
|
|
|
9.5 |
|
|
|
9.5 |
|
|
Other credit |
|
|
|
59,705 |
|
|
|
481 |
|
|
|
53,412 |
|
|
|
|
430 |
|
|
|
11.8 |
|
|
|
11.9 |
|
|
Total credit trading1 |
|
|
|
1,779,517 |
|
|
|
14,351 |
|
|
|
1,608,588 |
|
|
|
|
12,972 |
|
|
|
10.6 |
|
|
|
10.6 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,282,713 |
|
|
|
18,409 |
|
|
|
2,431,419 |
|
|
|
|
19,608 |
|
|
|
(6.1 |
) |
|
|
(6.1 |
) |
|
Agency and other government bonds1 |
|
|
|
80,132 |
|
|
|
646 |
|
|
|
53,782 |
|
|
|
|
434 |
|
|
|
49.0 |
|
|
|
48.8 |
|
|
Total rates trading |
|
|
|
2,362,845 |
|
|
|
19,055 |
|
|
|
2,485,201 |
|
|
|
|
20,042 |
|
|
|
(4.9 |
) |
|
|
(4.9 |
) |
|
Total trading |
|
|
$ |
4,142,362 |
|
|
$ |
33,406 |
|
|
$ |
4,093,789 |
|
|
|
$ |
33,014 |
|
|
|
1.2 |
|
|
|
1.2 |
|
|
Number of |
|
|
|
|
|
|
124 |
|
|
|
|
|
|
|
124 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
|
|
|
|
|
|
124 |
|
|
|
|
|
|
|
124 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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/20240702802932/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 was MarketAxess' total ADV for Q2 2024?
How did MarketAxess' U.S. high-grade ADV perform in Q2 2024?
What was the change in U.S. high-yield ADV for MarketAxess in Q2 2024?
What drove the increase in MarketAxess' emerging markets ADV in Q2 2024?
What was MarketAxess' preliminary FPM for total credit in Q2 2024?
How much did MarketAxess' municipal bond ADV grow in Q2 2024?
What was MarketAxess' total portfolio trading volume in Q2 2024?
Did MarketAxess' total rates ADV increase in Q2 2024?
