MarketAxess Announces Record Total Credit ADV for February 2023
MarketAxess Holdings Inc. (Nasdaq: MKTX) reported significant growth in its trading volumes for February 2023. Total credit average daily volume surged by 25% year-over-year, reaching a record $14.4 billion. Key highlights include a 30% increase in high-grade trading volume to $6.7 billion and a 43% rise in high-yield volume to $2.3 billion. The company also noted strong market share gains across various sectors, with price improvements via Open Trading estimated at $81 million. The preliminary variable transaction fees for total credit increased to $167 per million, up from $160 in January.
- Total credit average daily volume increased by 25% year-over-year to $14.4 billion.
- 30% increase in U.S. high-grade ADV to a record $6.7 billion.
- 43% increase in U.S. high-yield ADV to a record $2.3 billion, with substantial market share gains.
- 90% of credit volume executed by institutional clients.
- Estimated price improvement via Open Trading was approximately $81 million.
- None.
“In February we delivered
Open Trading estimated price improvement3 was approximately
We believe that stronger industry volumes, estimated market share gains and a favorable macro backdrop, combined with stable average fees per million for total credit, are setting the stage for a strong 2023.”
Select
-
Record
in total credit average daily volume (“ADV”), up$14.4 billion 25% from in the prior year.$11.6 billion -
30% increase inU.S. high-grade ADV to a record billion with estimated market share of$6.7 20.1% .2 EstimatedU.S. high-grade TRACE market ADV increased28% due to an increase in trading velocity. The February new issue calendar was robust with high-grade new issuance up approximately78% year-over-year and up approximately5% fromJanuary 2023 levels. -
43% increase inU.S. high-yield ADV to a record with estimated market share of$2.3 billion 19.2% (+400 bps), up from15.2% . -
11% increase in emerging markets ADV to billion; FINRA TRACE-reportable emerging markets ADV was flat year-over-year.$3.2 -
14% increase in Eurobonds ADV to with$1.8 billion 15.1% (+260 bps) estimated market share, up from12.5% . -
43% increase in municipal bond ADV to , with estimated market share of$402 million 5.7% (+150 bps). -
90% of credit volume on the platform was executed by institutional clients. -
36% of total eligible credit trading volume was executed via Open Trading®. Estimated price improvement3 via Open Trading was approximately million, and average estimated price improvement per million was$81 .$908 -
The preliminary FPM1 for total credit for
February 2023 was approximately , compared to$167 in$160 January 2023 . The increase in the preliminary total credit FPM inFebruary 2023 compared toJanuary 2023 was driven principally by favorable mix across credit products, with a slight improvement in the duration ofU.S. high-grade bonds traded on our platform. The preliminary FPM for total rates was , compared to$3.96 in$3.79 February 2022 .
*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
|
Feb-23 |
19/20 |
|
|
|
|
|
|
|
|
|
|
Feb-22 |
19/20 |
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
( |
( |
|
Table 1A:
CREDIT | RATES | ||||||
|
High-Grade |
High-Yield |
High-Grade/High-Yield Combined |
Eurobonds |
Composite Corporate Bond5 |
Municipals |
US Govt.
|
Feb-23 |
|
|
|
|
|
|
|
Feb-22 |
|
|
|
|
|
|
|
Bps Change |
+20 bps |
+400 bps |
+130 bps |
+260 bps |
+170 bps |
+150 bps |
(30) 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
|
Feb-23 |
121/125 |
|
|
|
|
|
|
|
|
|
|
Feb-22 |
122/126 |
|
|
|
|
|
|
|
|
|
|
% Change |
|
|
|
|
|
|
|
|
( |
( |
|
Table 1C: Rolling 6-month estimated market share (period ending
CREDIT | RATES | ||||||
|
High-Grade |
High-Yield |
High-Grade/High-Yield Combined |
Eurobonds |
Composite Corporate Bond5 |
Municipals |
US Govt.
|
Feb-23 |
|
|
|
|
|
|
|
Feb-22 |
|
|
|
|
|
|
|
Bps Change |
(20) bps |
+450 bps |
+120 bps |
+460 bps |
+200 bps |
+190 bps |
+20 bps |
1 The FPM for total credit and total rates for the month of
2 Estimated market share for
3 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.
4 The number of
5 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) |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
127,843 |
|
|
$ |
6,729 |
|
|
$ |
98,726 |
|
|
|
$ |
5,196 |
|
|
|
29.5 |
|
% |
|
29.5 |
|
% |
High-yield |
|
|
|
43,502 |
|
|
|
2,290 |
|
|
|
30,355 |
|
|
|
|
1,598 |
|
|
|
43.3 |
|
|
|
43.3 |
|
|
Emerging markets |
|
|
|
61,217 |
|
|
|
3,222 |
|
|
|
55,111 |
|
|
|
|
2,901 |
|
|
|
11.1 |
|
|
|
11.1 |
|
|
Eurobonds |
|
|
|
35,808 |
|
|
|
1,790 |
|
|
|
31,440 |
|
|
|
|
1,572 |
|
|
|
13.9 |
|
|
|
13.9 |
|
|
Other credit |
|
|
|
7,881 |
|
|
|
415 |
|
|
|
5,749 |
|
|
|
|
303 |
|
|
|
37.1 |
|
|
|
37.0 |
|
|
Total credit trading1 |
|
|
|
276,251 |
|
|
|
14,446 |
|
|
|
221,381 |
|
|
|
|
11,570 |
|
|
|
24.8 |
|
|
|
24.9 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
437,356 |
|
|
|
23,019 |
|
|
|
487,887 |
|
|
|
|
25,678 |
|
|
|
(10.4 |
) |
|
|
(10.4 |
) |
|
Agency and other government bonds1 |
|
|
|
8,467 |
|
|
|
431 |
|
|
|
7,504 |
|
|
|
|
381 |
|
|
|
12.8 |
|
|
|
13.1 |
|
|
Total rates trading |
|
|
|
445,823 |
|
|
|
23,450 |
|
|
|
495,391 |
|
|
|
|
26,059 |
|
|
|
(10.0 |
) |
|
|
(10.0 |
) |
|
Total trading |
|
|
$ |
722,074 |
|
|
$ |
37,896 |
|
|
$ |
716,772 |
|
|
|
$ |
37,629 |
|
|
|
0.7 |
|
|
|
0.7 |
|
|
Number of |
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
19 |
|
|
|
|
|
|
|
|
|
|
||
Number of |
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
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||
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|
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|
Year-to-Date Ended |
|
|
||||||||||||||||||||||
In millions (unaudited) |
|
|
2023 |
|
|
2022 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
252,301 |
|
|
$ |
6,469 |
|
|
$ |
207,967 |
|
|
|
$ |
5,332 |
|
|
|
21.3 |
|
% |
|
21.3 |
|
% |
High-yield |
|
|
|
80,962 |
|
|
|
2,076 |
|
|
|
63,950 |
|
|
|
|
1,640 |
|
|
|
26.6 |
|
|
|
26.6 |
|
|
Emerging markets |
|
|
|
130,095 |
|
|
|
3,336 |
|
|
|
116,642 |
|
|
|
|
2,991 |
|
|
|
11.5 |
|
|
|
11.5 |
|
|
Eurobonds |
|
|
|
76,406 |
|
|
|
1,864 |
|
|
|
60,420 |
|
|
|
|
1,511 |
|
|
|
26.5 |
|
|
|
23.4 |
|
|
Other credit |
|
|
|
18,417 |
|
|
|
472 |
|
|
|
11,750 |
|
|
|
|
301 |
|
|
|
56.7 |
|
|
|
56.8 |
|
|
Total credit trading1 |
|
|
|
558,181 |
|
|
|
14,217 |
|
|
|
460,729 |
|
|
|
|
11,775 |
|
|
|
21.2 |
|
|
|
20.7 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
879,442 |
|
|
|
22,550 |
|
|
$ |
954,936 |
|
|
|
|
24,486 |
|
|
|
(7.9 |
) |
|
|
(7.9 |
) |
|
Agency and other government bonds1 |
|
|
|
17,914 |
|
|
|
445 |
|
|
|
16,758 |
|
|
|
|
423 |
|
|
|
6.9 |
|
|
|
5.2 |
|
|
Total rates trading |
|
|
|
897,356 |
|
|
|
22,995 |
|
|
|
971,694 |
|
|
|
|
24,909 |
|
|
|
(7.7 |
) |
|
|
(7.7 |
) |
|
Total trading |
|
|
$ |
1,455,537 |
|
|
$ |
37,212 |
|
|
$ |
1,432,423 |
|
|
|
$ |
36,684 |
|
|
|
1.6 |
|
|
|
1.4 |
|
|
Number of |
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
39 |
|
|
|
|
|
|
|
|
|
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||
Number of |
|
|
|
|
|
|
41 |
|
|
|
|
|
|
|
40 |
|
|
|
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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/20230302005935/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 the total credit average daily volume for MarketAxess in February 2023?
How much did high-grade trading volume increase in February 2023 for MKTX?
What are the preliminary variable transaction fees for MarketAxess in February 2023?
What was the estimated price improvement via Open Trading in February 2023 for MKTX?