MarketAxess Announces Monthly Volume Statistics for September 2022

Rhea-AI Summary

MarketAxess Holdings Inc. (Nasdaq: MKTX) reported strong monthly trading volume for September 2022, achieving $32.6 billion in average daily volume (ADV), a 23% increase year-over-year. The company reached record estimated market shares exceeding 20% across three key product areas, with U.S. high-yield at 21.3%, up 730 basis points. Estimated transaction cost savings for clients totaled approximately $699 million year-to-date, highlighting the value of Open Trading. The preliminary fees per million for total credit were $165.6, a decline of 9% from the previous year, attributed to rising corporate bond yields.

Positive

• 23% increase in total trading ADV year-over-year to $32.6 billion.
• Record estimated market share above 20% in three major product areas.
• Estimated transaction cost savings of $699 million year-to-date, up 57% from the previous year.
• Record $10.1 billion in portfolio trading during September.
• Record 21.3% U.S. high-yield market share, up from 14.0%, on ADV of $1.8 billion.

Negative

• Preliminary fees per million for total credit decreased by approximately 9% from the previous year.
• The decrease in fees was mainly due to increased corporate bond yields, negatively impacting U.S. high-grade FPM.

NEW YORK--(BUSINESS WIRE)-- 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 September 2022 and preliminary variable transaction fees per million (“FPM”) for the quarter ended September 30, 2022.¹

Chris Concannon, President and COO of MarketAxess commented:

“Increasing momentum through the quarter, culminated in a record week of trading at the end of September, driving 20% growth in total credit, and estimated market share above 20% across three major product areas for the month and for the first time in our history. These results reflect the benefit of the investments that we have made to diversify our franchise and grow our international business.

Open Trading estimated transaction cost savings³ were a total of $260 million in 3Q22, which equates to approximately $1,141 per million saved for our clients. Year-to-date estimated transaction cost savings are now approximately $699 million, 57% above the prior year, reflecting the powerful benefits of our unique, all-to-all liquidity pool.

The strong September helped drive record estimated market share in high-yield, Eurobonds and municipals in 3Q22, reflecting the increasing strength of our franchise.”

Select September 2022 highlights*

• Estimated market share exceeded 20% across three major product areas for the first time in our history, with U.S. high-yield achieving record estimated market share of 21.3%, an increase of 730 basis points, joining U.S high-grade and emerging markets with estimated market share in excess of 20%.
• $32.6 billion in total trading average daily volume (“ADV”), up 23%, driven by a 20% increase in total credit ADV to $12.2 billion and a 24% increase in U.S. Treasury ADV to $19.9 billion.
• 21.4% composite corporate bond estimated market share,² up from 17.9%.
• 21.7% estimated U.S. high-grade estimated market share, up from 20.1%, on ADV of $5.7 billion, representing an increase of 24%.
• Record 21.3% estimated U.S. high-yield market share, up from 14.0%, on ADV of $1.8 billion, representing an increase of 38%.
• Emerging markets ADV of $2.8 billion, up 6%; up approximately 11% excluding the impact of foreign currency fluctuations.
• Record 18.3% Eurobonds estimated market share, up from 13.8%, on ADV of $1.5 billion, representing an increase of 2%; up approximately 20% excluding the impact of foreign currency fluctuations.
• 4.2% municipal bond estimated market share, up from 2.5%, on ADV of $360 million.
• Record $10.1 billion in portfolio trading.
• 36% of total credit trading volume was executed via Open Trading®, up from 34%.
  • Estimated total transaction cost savings via Open Trading³ were approximately $95 million, and $699 million year-to-date. Average transaction cost savings per million via Open Trading was $1,142.
• 3.8% U.S. Treasury estimated market share, up from 3.0%, on a 24% increase in ADV.

*All comparisons versus September 2021 unless otherwise noted.

Table 1: September 2022 trading ADV

			CREDIT						RATES
$ in millions (unaudited)	US/UK Trading Days4	Total ADV	High-Grade	High-Yield	Emerging Markets	Eurobonds	Other Credit	Total Credit	US Govt. Bonds	Agcy./Other Govt. Bonds	Total Rates
Sep-22	21/21	$32,618	$5,721	$1,828	$2,810	$1,513	$377	$12,249	$19,948	$421	$20,369
Sep-21	21/22	$26,563	$4,607	$1,320	$2,651	$1,482	$106	$10,166	$16,029	$368	$16,397
% Change		23%	24%	38%	6%	2%	256%	20%	24%	14%	24%

Table 2: September 2022 estimated market share

	CREDIT						RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High- Yield Combined	Eurobonds	Composite Corporate Bond2	Municipals	US Govt. Bonds
Sep-22	21.7%	21.3%	21.6%	18.3%	21.4%	4.2%	3.8%
Sep-21	20.1%	14.0%	18.3%	13.8%	17.9%	2.5%	3.0%
BPS Change	+160 bps	+730 bps	+330 bps	+450 bps	+350 bps	+170 bps	+80 bps

Table 3: 3Q22 trading ADV

			CREDIT						RATES
$ in millions (unaudited)	US/UK Trading Days4	Total ADV	High-Grade	High-Yield	Emerging Markets	Eurobonds	Other Credit	Total Credit	US Govt. Bonds	Agcy./Other Govt. Bonds	Total Rates
3Q22	64/64	$31,440	$5,124	$1,626	$2,592	$1,255	$377	$10,974	$20,133	$333	$20,466
3Q21	64/65	$23,836	$4,341	$1,299	$2,407	$1,173	$91	$9,311	$14,226	$299	$14,525
% Change		32%	18%	25%	8%	7%	314%	18%	42%	11%	41%

Table 4: 3Q22 estimated market share

	CREDIT						RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High- Yield Combined	Eurobonds	Composite Corporate Bond2	Municipals	US Govt. Bonds
3Q22	21.1%	19.3%	20.6%	17.6%	20.6%	4.9%	3.6%
3Q21	21.4%	15.3%	19.6%	13.1%	18.9%	2.2%	2.6%
BPS Change	(30) bps	+400 bps	+100 bps	+450 bps	+170 bps	+270 bps	+100 bps

Select 3Q22 highlights**

• Record active total client firms of 1,972 and record active international client firms of 993 reflecting the expanding global liquidity network on our marketplace.
• The preliminary FPM for the quarter for total credit was $165.6, down approximately 9% from the prior year, but in line with 2Q22 levels. The decrease year-over-year was principally due to the increase in corporate bond yields, negatively impacting our U.S. high-grade FPM. The preliminary FPM for the quarter for total rates was $4.10.
• 18% increase in total credit ADV.
• 92% of credit volume on the platform executed by institutional clients.
• Record 20.6% composite corporate bond estimated market share,² up from 18.9%.
• 21.1% U.S. high-grade estimated market share on an 18% increase in ADV.
• Record U.S. high-yield estimated market share of 19.3%, up from 15.3%, on ADV of $1.6 billion, representing an increase of 25%.
• Emerging markets ADV of $2.6 billion, up 8%; up approximately 12% excluding the impact of foreign currency fluctuations.
• Record 17.6% Eurobonds estimated market share, up from 13.1% on ADV of $1.3 billion, representing an increase of 7%; up approximately 25% excluding the impact of foreign currency fluctuations.
• Record 4.9% municipal bond estimated market share, up from 2.2% on trading ADV of $361 million.
• 37% of total credit trading volume was executed via Open Trading, up from 34% in the prior year.
  • Estimated total transaction cost savings via Open Trading³ were approximately $260 million, and $699 million year-to-date. Average transaction cost savings per million via Open Trading was $1,141 in the quarter.
• Record $25 billion in portfolio trading volume, up from $9 billion in 3Q21, and $23 billion in 2Q22.
• 3.6% U.S. Treasury estimated market share, up from 2.6%, on ADV of $20.1 billion, representing an increase of 42%.
  • 226 active participants on the platform, up from 122 in the prior year.

**All comparisons versus 3Q21 unless otherwise noted.

1 The average FPM for total credit and total rates for the quarter ended September 30, 2022 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 Composite corporate bond estimated market share is defined as combined estimated market share across U.S. high-grade (derived from FINRA TRACE reported data), U.S. high-yield (derived from FINRA TRACE reported data), emerging markets (derived from FINRA TRACE-reportable emerging markets volume) and Eurobonds (derived from MarketAxess TRAX data which is estimated to represent approximately 70% of the total European market) product areas.

3 Estimated transaction cost savings consists of estimated liquidity taker cost savings (defined as the difference between the winning price and the best disclosed dealer cover price) and estimated liquidity provider cost savings (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.

4 Please refer to the Company’s website at investor.marketaxess.com/volume for more information on trading days.

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.

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 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; reputational or credibility risks related to our data products and index business; 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; risks related to 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; 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 (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 1,900 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 the full trading lifecycle, including automated trading solutions, intelligent data products and a range of post-trade services. Learn more at www.marketaxess.com and on Twitter @MarketAxess.

MarketAxess Holdings Inc.
Monthly Volume Statistics

		Average Daily Volume						Total Trading Volume
		Sep-22		Sep-21		% Change		Sep-22		Sep-21		% Change
		($ in millions)
Credit
U.S. High-Grade		5,721		4,607		24.2%		120,151		96,730		24.2%
U.S. High-Yield		1,828		1,320		38.5%		38,397		27,717		38.5%
Emerging Markets		2,810		2,651		6.0%		59,020		55,678		6.0%
Eurobonds		1,513		1,482		2.1%		31,779		32,613		-2.6%
Other Credit Products3		377		106		255.7%		7,923		2,220		256.9%
Total Credit1		12,249		10,166		20.5%		257,270		214,958		19.7%
Rates
U.S. Government Bonds 2		19,948		16,029		24.4%		418,910		336,604		24.5%
Agencies and Other Government Bonds 1		421		368		14.4%		8,837		7,902		11.8%
Total Rates		20,369		16,397		24.2%		427,747		344,506		24.2%
Number of U.S. Trading Days 4		21		21
Number of U.K. Trading Days 5		21		22
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 Beginning January 2022, following the integration of the MuniBrokers platform, we are now including MuniBrokers variable commission related trading volume in Other Credit Products.
4 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
5 The number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

MarketAxess Holdings Inc.
Quarterly Volume Statistics

		Average Daily Volume						Total Trading Volume
		3Q22		3Q21		% Change		3Q22		3Q21		% Change
		($ in millions)
Credit
U.S. High-Grade		5,124		4,341		18.0%		327,916		277,837		18.0%
U.S. High-Yield		1,626		1,299		25.2%		104,066		83,136		25.2%
Emerging Markets		2,592		2,407		7.7%		165,910		154,034		7.7%
Eurobonds		1,255		1,173		7.0%		80,305		76,215		5.4%
Other Credit Products3		377		91		314.3%		24,159		5,824		314.8%
Total Credit1		10,974		9,311		17.9%		702,356		597,046		17.6%
Rates
U.S. Government Bonds 2		20,133		14,226		41.5%		1,288,543		910,439		41.5%
Agencies and Other Government Bonds 1		333		299		11.4%		21,281		19,295		10.3%
Total Rates		20,466		14,525		40.9%		1,309,824		929,734		40.9%
Number of U.S. Trading Days 4		64		64
Number of U.K. Trading Days 5		64		65
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 Beginning January 2022, following the integration of the MuniBrokers platform, we are now including MuniBrokers variable commission related trading volume in Other Credit Products.
4 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
5 The number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

 

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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



William McBride

RF | Binder

+1 917 239 6726

Source: MarketAxess Holdings Inc.

FAQ

What are the September 2022 trading volumes for MarketAxess (MKTX)?

MarketAxess reported $32.6 billion in total average daily volume (ADV) for September 2022, a 23% increase from September 2021.

What was the estimated market share for U.S. high-yield bonds in September 2022 for MKTX?

The estimated market share for U.S. high-yield bonds reached a record 21.3% in September 2022, up from 14.0%.

How much did MarketAxess save clients in transaction costs in Q3 2022?

Estimated transaction cost savings for clients in Q3 2022 were approximately $260 million, totaling $699 million year-to-date.

Did MarketAxess see any changes in variable transaction fees per million for Q3 2022?

Yes, the preliminary variable transaction fees per million for total credit were $165.6 for the quarter, down approximately 9% from the prior year.

What contributed to the changes in MarketAxess's transaction fees for Q3 2022?

The decrease in transaction fees was primarily due to increased corporate bond yields affecting U.S. high-grade FPM.