MarketAxess Announces Monthly Volume Statistics for March and First Quarter 2024
- None.
- None.
Insights
The report from MarketAxess Holdings Inc. presents a detailed overview of trading volumes and market shares in various fixed-income securities segments. The increase in total credit average daily trading volume (ADV) by 9.2% and record highs in U.S. high-grade, emerging markets and Eurobonds ADVs are indicative of the company's growth and operational efficiency in these areas. However, the decline in U.S. high-yield ADV and market share suggests a challenging environment for high-yield credit, potentially due to lower credit spread volatility and a shift in client focus towards new issues. The data also reveals a decrease in ETF market maker activity, which may reflect broader market trends and investor sentiment towards high-yield securities.
From a market share perspective, a decrease in U.S. high-grade and high-yield segments, despite overall trading volume growth, could imply competitive pressures or changes in trading patterns. The increase in municipal bond market share, despite a decrease in ADV, suggests resilience and potential strategic positioning in this segment. The reported decline in total rates ADV points to a possible shift in investor preferences or market conditions affecting interest rate products. The changes in the preliminary variable transaction fees per million (FPM) for total credit and rates also warrant attention, as they may affect the company's revenue structure and pricing strategies.
Overall, these trends and figures are central to understanding MarketAxess' current market position and future prospects, as well as the evolving dynamics of the fixed-income trading landscape, which can have implications for investors and competitors alike.
MarketAxess' financial performance, as indicated by the record trading volumes in several segments, is a positive signal for investors, reflecting the company's capability to capture market demand. The growth in emerging markets and Eurobonds, in particular, highlights the company's successful international expansion and diversification efforts. However, the decline in high-yield trading activity and the associated decrease in market share raise concerns about the company's performance in that segment and may warrant a closer look at the strategies employed to navigate the current market conditions.
Moreover, the reduction in FPM for total credit could have implications for the company's revenue, considering that transaction fees are a significant source of income for electronic trading platforms. The shift in product mix and the impact on FPM should be analyzed to understand the potential effects on the company's profitability. The reported increase in total portfolio trading volume is another important aspect, as it may reflect changing client behavior and the adoption of new trading strategies, which could lead to shifts in revenue streams.
Investors should also consider the changes in methodology for calculating estimated market shares, as these adjustments can affect the comparability of current and historical data. Accurate market share estimates are important for assessing the company's competitive position and growth trajectory.
The trading activity reported by MarketAxess can be seen as a microcosm of broader economic trends, particularly in the fixed-income market. The observed decline in credit spread volatility, especially in the U.S. high-yield segment, may be interpreted as a sign of market stability or investor caution. This could reflect wider economic conditions such as interest rate policies, inflation expectations and overall market liquidity.
Additionally, the substantial increase in U.S. high-yield new issuance suggests a robust appetite for riskier assets, possibly driven by search for yield in a low-interest-rate environment or by specific sectoral growth. The record figures in emerging markets and Eurobonds trading volumes may indicate a growing investor interest in diversifying portfolios internationally, which can be attributed to global economic shifts or regional developments.
It's also noteworthy to consider the impact of technological advancements and digitalization on the fixed-income market. MarketAxess' Open Trading platform and the introduction of MarketAxess X-Pro could be contributing to changes in trading behavior and market structure, with potential long-term implications for liquidity, market efficiency and access to capital.
Record Quarterly Total Credit Trading ADV of
Chris Concannon, CEO of MarketAxess, commented:
“In the first quarter, we delivered record total credit ADV of
Select 1Q24 highlights*
-
Record total credit average daily trading volume (“ADV”) of
$15.0 billion 9.2% . -
Record
U.S. high-grade ADV of$7.5 18.0% on a21.3% increase in estimated market ADV. Estimated market share of19.3% , down from19.9% in the prior year. -
U.S. high-yield ADV of$1.4 billion 29.4% . Estimated market share of12.9% , down from18.3% in the prior year.U.S. high-yield estimated market ADV increased0.5% . 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
—
-
Record emerging markets ADV of
$3.6 billion 17.3% . The year-over-year increase was due to a13.1% increase in hard currency trading ADV and record local currency markets ADV, up29.8% .2
— Our Latin America and
-
Record Eurobonds ADV of
$2.0 10.6% .2 -
Municipal bond ADV of
$419 million 6.4% with estimated market ADV down18.5% . Estimated market share of6.5% , up from5.7% in the prior year.2 -
AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of
$140.1 million 22.2% from the prior year. -
Record
$44.2 billion 40.6% . -
34% Open Trading® share3 of total credit trading volume, down from37% in the prior year. -
Total rates ADV of
$17.7 billion 27.9% versus the prior year. -
The preliminary FPM1 for total credit for 1Q24 was approximately
$154 $165 $156 $4.70 $4.12
*All comparisons versus 1Q23 unless otherwise noted.
Table 1: March 2024 trading 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 |
|||||||||||||||||||||
| Mar-24 | 20/20 |
$ |
31,831 |
|
$ |
14,814 |
|
$ |
7,233 |
|
$ |
1,361 |
|
$ |
3,533 |
|
$ |
2,255 |
|
$ |
417 |
|
$ |
17,017 |
|
$ |
16,450 |
|
$ |
567 |
|
|
| Mar-23 | 23/23 |
$ |
39,882 |
|
$ |
12,882 |
|
$ |
6,128 |
|
$ |
1,823 |
|
$ |
2,685 |
|
$ |
1,824 |
|
$ |
401 |
|
$ |
27,000 |
|
$ |
26,602 |
|
$ |
398 |
|
|
| % Change |
|
(20 |
%) |
|
15 |
% |
|
18 |
% |
|
(25 |
%) |
|
32 |
% |
|
24 |
% |
|
4 |
% |
|
(37 |
%) |
|
(38 |
%) |
|
42 |
% |
||
Table 1A: March 2024 estimated market share
| CREDIT | RATES | |||||||||
(unaudited) |
High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals2 | US Govt. Bonds2 |
|||||
| Mar-24 | 19.3 |
% |
12.7 |
% |
17.9 |
% |
6.6 |
% |
2.0 |
% |
| Mar-23 | 19.9 |
% |
18.9 |
% |
19.7 |
% |
5.6 |
% |
3.0 |
% |
| Bps Change | (60) bps |
(620) bps |
(180) bps |
+100 bps |
(100) bps |
|||||
Table 1B: 1Q24 trading 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 |
|||||||||||||||||||||
1Q24 |
61/63 |
$ |
32,632 |
|
$ |
14,982 |
|
$ |
7,475 |
|
$ |
1,400 |
|
$ |
3,630 |
|
$ |
2,045 |
|
$ |
419 |
|
$ |
17,650 |
|
$ |
17,144 |
|
$ |
506 |
|
|
1Q23 |
62/64 |
$ |
38,202 |
|
$ |
13,721 |
|
$ |
6,334 |
|
$ |
1,982 |
|
$ |
3,094 |
|
$ |
1,849 |
|
$ |
447 |
|
$ |
24,481 |
|
$ |
24,053 |
|
$ |
428 |
|
|
| % Change |
|
(15 |
%) |
|
9 |
% |
|
18 |
% |
|
(29 |
%) |
|
17 |
% |
|
11 |
% |
|
(6 |
%) |
|
(28 |
%) |
|
(29 |
%) |
|
18 |
% |
||
Table 1C: 1Q24 estimated market share
| CREDIT | RATES | |||||||||
(unaudited) |
High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals2 | US Govt. Bonds2 |
|||||
1Q24 |
19.3 |
% |
12.9 |
% |
17.9 |
% |
6.5 |
% |
2.0 |
% |
1Q23 |
19.9 |
% |
18.3 |
% |
19.5 |
% |
5.7 |
% |
3.0 |
% |
| Bps Change | (60) bps |
|
(540) bps |
(160) bps |
+80 bps |
(100) bps |
||||
1 The FPM for total credit and total rates for 1Q24 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 See “General Notes Regarding the Data Presented” below.
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
General Notes Regarding the Data Presented
Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and TRACE reported volumes are available on the Company’s website at investor.marketaxess.com/volume.
Beginning with January 2024, the Company is no longer providing Emerging Markets or Eurobonds market ADV or estimated market share. The Company is currently reviewing its methodology for calculating such statistics, which historically have been derived from MarketAxess TraX data, to ensure that the statistics presented provide a complete and accurate view of the market.
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 |
|
|
|||||||||||||||||||||||||
|
|
|
Month Ended March 31, |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
144,659 |
|
|
$ |
7,233 |
|
|
$ |
140,951 |
|
|
|
$ |
6,128 |
|
|
|
2.6 |
|
% |
|
18.0 |
|
% |
High-yield |
|
|
|
27,228 |
|
|
|
1,361 |
|
|
|
41,930 |
|
|
|
|
1,823 |
|
|
|
(35.1 |
) |
|
|
(25.3 |
) |
|
Emerging markets |
|
|
|
70,661 |
|
|
|
3,533 |
|
|
|
61,746 |
|
|
|
|
2,685 |
|
|
|
14.4 |
|
|
|
31.6 |
|
|
Eurobonds |
|
|
|
45,108 |
|
|
|
2,255 |
|
|
|
41,960 |
|
|
|
|
1,824 |
|
|
|
7.5 |
|
|
|
23.6 |
|
|
Other credit |
|
|
|
8,650 |
|
|
|
432 |
|
|
|
9,710 |
|
|
|
|
422 |
|
|
|
(10.9 |
) |
|
|
2.4 |
|
|
Total credit trading1 |
|
|
|
296,306 |
|
|
|
14,814 |
|
|
|
296,297 |
|
|
|
|
12,882 |
|
|
|
- |
|
|
|
15.0 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
329,008 |
|
|
|
16,450 |
|
|
|
611,850 |
|
|
|
|
26,602 |
|
|
|
(46.2 |
) |
|
|
(38.2 |
) |
|
Agency and other government bonds1 |
|
|
|
11,360 |
|
|
|
567 |
|
|
|
9,147 |
|
|
|
|
398 |
|
|
|
24.2 |
|
|
|
42.5 |
|
|
Total rates trading |
|
|
|
340,368 |
|
|
|
17,017 |
|
|
|
620,997 |
|
|
|
|
27,000 |
|
|
|
(45.2 |
) |
|
|
(37.0 |
) |
|
Total trading |
|
|
$ |
636,674 |
|
|
$ |
31,831 |
|
|
$ |
917,294 |
|
|
|
$ |
39,882 |
|
|
|
(30.6 |
) |
|
|
(20.2 |
) |
|
Number of |
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
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|
|
|
Quarter and Year-to-Date Ended March 31, |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
455,998 |
|
|
$ |
7,475 |
|
|
$ |
392,715 |
|
|
|
$ |
6,334 |
|
|
|
16.1 |
|
% |
|
18.0 |
|
% |
High-yield |
|
|
|
85,379 |
|
|
|
1,400 |
|
|
|
122,873 |
|
|
|
|
1,982 |
|
|
|
(30.5 |
) |
|
|
(29.4 |
) |
|
Emerging markets |
|
|
|
221,427 |
|
|
|
3,630 |
|
|
|
191,841 |
|
|
|
|
3,094 |
|
|
|
15.4 |
|
|
|
17.3 |
|
|
Eurobonds |
|
|
|
128,849 |
|
|
|
2,045 |
|
|
|
118,366 |
|
|
|
|
1,849 |
|
|
|
8.9 |
|
|
|
10.6 |
|
|
Other credit |
|
|
|
26,335 |
|
|
|
432 |
|
|
|
28,683 |
|
|
|
|
462 |
|
|
|
(8.2 |
) |
|
|
(6.5 |
) |
|
Total credit trading1 |
|
|
|
917,988 |
|
|
|
14,982 |
|
|
|
854,478 |
|
|
|
|
13,721 |
|
|
|
7.4 |
|
|
|
9.2 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,045,796 |
|
|
|
17,144 |
|
|
|
1,491,292 |
|
|
|
|
24,053 |
|
|
|
(29.9 |
) |
|
|
(28.7 |
) |
|
Agency and other government bonds1 |
|
|
|
31,626 |
|
|
|
506 |
|
|
|
27,061 |
|
|
|
|
428 |
|
|
|
16.9 |
|
|
|
18.2 |
|
|
Total rates trading |
|
|
|
1,077,422 |
|
|
|
17,650 |
|
|
|
1,518,353 |
|
|
|
|
24,481 |
|
|
|
(29.0 |
) |
|
|
(27.9 |
) |
|
Total trading |
|
|
$ |
1,995,410 |
|
|
$ |
32,632 |
|
|
$ |
2,372,831 |
|
|
|
$ |
38,202 |
|
|
|
(15.9 |
) |
|
|
(14.6 |
) |
|
Number of |
|
|
|
|
|
|
61 |
|
|
|
|
|
|
|
62 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
|
|
|
|
|
|
63 |
|
|
|
|
|
|
|
64 |
|
|
|
|
|
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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/20240402439192/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 Holdings Inc.'s total credit trading ADV in Q1 2024?
What were the key drivers behind the record total credit ADV?
What factors contributed to the decline in U.S. high-yield trading activity?
What percentage of U.S. credit trading volume was executed on MarketAxess X-Pro in Q1 2024?
Which client segments showed significant growth in trading volume?
