MarketAxess Announces Trading Volume Statistics for February 2025

Rhea-AI Summary

MarketAxess Holdings (Nasdaq: MKTX) reported its February 2025 trading statistics, showing mixed performance across different segments. Total average daily volume (ADV) reached $43.4 billion, up 27% year-over-year and 11% from January 2025.

Key metrics include:

• Total rates ADV: $27.9 billion (+46% YoY)
• Total credit ADV: $15.5 billion (+2% YoY)
• U.S. high-grade ADV: $7.1 billion (-8% YoY)
• Record emerging markets ADV: $4.1 billion (+13% YoY)

The company's market share in U.S. high-grade credit declined to 17.8% from 19.5% year-over-year. However, portfolio trading showed strong growth, with ADV of $1.5 billion (+131% YoY). The company's CEO acknowledged challenges in U.S. credit performance but highlighted upcoming launches of High Touch block trading solution and dealer Mid-X protocol in Q2 2025.

Positive

• Total ADV up 27% YoY to $43.4B
• Record emerging markets ADV of $4.1B (+13% YoY)
• Portfolio trading ADV up 131% YoY to $1.5B
• U.S. government bonds market share increased to 2.7% from 2.0% YoY
• Open Trading share increased to 36% from 34% YoY

Negative

• U.S. high-grade credit market share declined to 17.8% from 19.5% YoY
• U.S. high-grade ADV decreased 8% YoY
• Total credit FPM declined to $143 from $152 YoY
• U.S. high-yield market share dropped to 12.1% from 12.9% YoY

Insights

Financial Analyst

MarketAxess's February trading statistics present a mixed financial picture that requires careful analysis. The company reported total average daily volume (ADV) of $43.4 billion, a substantial 27% year-over-year increase, driven primarily by strong performance in rates trading (46% growth). However, beneath these positive headline numbers lies concerning weakness in the company's core U.S. credit business.

The most troubling metric is the decline in U.S. high-grade market share, which fell from 19.5% last year to 17.8%, suggesting competitive pressures in MarketAxess's traditional stronghold. This erosion continued in high-yield bonds, where market share dropped from 12.9% to 12.1%. The company's variable transaction fees per million for credit products also declined from $152 to $143 year-over-year, indicating potential margin compression.

On the positive side, MarketAxess is showing impressive growth in strategic initiatives. Portfolio trading volume surged 131% year-over-year, with market share in this segment improving from 14.7% in January to 20.7% in February. Record performance in emerging markets (up 13%) and strong growth in block trading demonstrate that the company's diversification strategy is gaining traction.

CEO Concannon's acknowledgment of underperformance in U.S. credit coupled with specific remediation plans (High Touch block trading and dealer Mid-X protocol) shows management's awareness and proactive approach to addressing market share erosion. The preliminary March improvement noted provides some reassurance, but sustained execution will be important to reverse the concerning market share trends in core business segments.

NEW YORK--(BUSINESS WIRE)-- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced trading volume and preliminary variable transaction fees per million (“FPM”) for February 2025.¹

Chris Concannon, CEO of MarketAxess, commented:
“While we are not satisfied with our February performance in U.S. credit, we are seeing the benefit of the enhancements we have made to our portfolio trading solution, and the launch of our High Touch block trading solution in Eurobonds and emerging markets. We are also excited about the expected launch of our High Touch block trading solution in the U.S. and our dealer Mid-X protocol on Pragma technology in the second quarter. We believe these new capabilities should help drive higher levels of market share in U.S. credit in the coming quarters. While it is still early in the final month of the quarter, we are encouraged by the recent increase in volatility in the markets and the increase in our U.S. credit trading volumes and estimated market share relative to February 2025 levels.”

Select February 2025 Highlights

• Total average daily volume (“ADV”) of $43.4 billion increased 27% compared to the prior year, and increased 11% compared to January 2025 levels. Total rates ADV of $27.9 billion increased 46% compared to the prior year, and increased 14% compared to January 2025. Total credit ADV of $15.5 billion increased 2% compared to the prior year, and increased 7% compared to January 2025.

U.S. Credit²

• U.S. high-grade ADV of $7.1 billion decreased 8% compared to the prior year, but increased 2% compared to January 2025. Estimated market ADV increased 5% compared to the prior year, and increased 6% compared to January 2025. Including the impact of single-dealer portfolio trades, estimated market share was 17.8%, down from 19.5% in the prior year, and down slightly from 17.9% in January 2025. Estimated market share, excluding the impact of single-dealer portfolio trades, was 17.0%, down from 19.5% in the prior year, and down from 17.7% in January 2025.
• U.S. high-yield ADV of $1.4 billion was in line with the prior year, but increased 12% compared to January 2025. Estimated market ADV increased 16% compared to the prior year, and increased 21% compared to January 2025. Including the impact of single-dealer portfolio trades, estimated market share was 12.1%, down from 12.9% in the prior year, and down slightly from 12.3% in January 2025. Estimated market share, excluding the impact of single-dealer portfolio trades, was 11.1%, down from 12.9% in the prior year, and down from 12.0% in January 2025.

Other Credit

• Record emerging markets ADV of $4.1 billion increased 13% compared to the prior year, and increased 13% compared to January 2025. The year-over-year increase was driven by an 11% increase in local currency ADV, and record levels of hard currency ADV which increased 13%. These results were driven by strong growth in block trading across both hard currency and local currency markets which increased 52% and 28%, respectively, compared to the prior year.
• Eurobonds ADV of $2.3 billion increased 16% compared to the prior year, and increased 8% compared to January 2025.
• Municipal bond ADV of $614 million increased 41% compared to the prior year, and increased 15% compared to January 2025. Estimated market ADV increased 40% compared to the prior year, but decreased 2% compared to January 2025. Estimated market share was 6.9%, up slightly from 6.8% in the prior year, and up from 5.8% in January 2025.

Strategic Priority Related Protocols & Workflow Tools

Client-Initiated Channel

• Record emerging markets block trading ADV (hard currency blocks defined as trade sizes ≥ $3 million notional, local currency blocks defined as trade sizes ≥ $5 million notional) of $1.7 billion increased 35% from the prior year, and increased 25% from January 2025. Block trading in emerging markets is benefiting from the launch of our targeted block solution in late 2024 which has generated cumulative trading volume of approximately $1 billion since launch.
• Eurobonds block trading ADV (defined as trade sizes ≥ $5 million notional) of $379 million increased 62% from the prior year, and increased 13% from January 2025. Block trading in Eurobonds is benefiting from the launch of our targeted block solution in January 2025 which has generated cumulative trading volume of over $1 billion since launch.

Portfolio Trading Channel

• $1.5 billion in total portfolio trading ADV, the second highest month recorded, increased 131% compared to the prior year, and increased 66% compared to January 2025. A record 85% of portfolio trading volume was executed over X-Pro.
  — Estimated U.S. credit TRACE portfolio trading market ADV increased 27% compared to January 2025.
• Our estimated market share of U.S. credit TRACE portfolio trading was 20.7% in February 2025, up from 14.7% in January 2025.
  — Portfolio trading represented approximately 11% of U.S. credit TRACE in February 2025, up from 9% in January 2025.

Dealer-Initiated Channel

• Record Dealer RFQ ADV of $1.7 billion across all credit products increased 32% compared to the prior year, and increased 15% compared to January 2025, driven by record Dealer RFQ ADV in U.S. high-grade and emerging markets.

Other

• Open Trading ADV of $4.6 billion increased 5% compared to the prior year, and increased 9% compared to January 2025. Open Trading share³ of total credit trading volume was 36%, up from 34% in the prior year, and up from 34% in January 2025.
• AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $158 million, up 13% compared to the prior year, and up 9% compared to January 2025.

Rates

• Total rates ADV of $27.9 billion increased 46% compared to the prior year, and increased 14% compared to January 2025. Estimated U.S. government bonds market ADV increased 8% compared to the prior year, and increased 10% compared to January 2025. Estimated U.S. government bonds market share was 2.7%, up from 2.0% in the prior year, and up slightly from 2.6% in January 2025.

Variable Transaction Fees Per Million (FPM)¹

• The preliminary FPM for total credit for February 2025 was approximately $143, down from $152 in the prior year, but up slightly from $141 in January 2025. The decline in total credit FPM year-over-year was due to product and protocol mix. The increase in total credit FPM month-over-month was principally due to the higher duration of bonds traded in U.S. high-grade, driven by an increase in the weighted average years to maturity.
• The preliminary FPM for total rates for February 2025 was approximately $4.29, up from $4.23 in the prior year, and up from $4.25 in January 2025. The increase in total rates FPM both year-over-year and month-over-month was driven by the impact of product mix within our rates business.

Table 1: February 2025 ADV

			CREDIT							RATES
$ in millions (unaudited)	US/UK Trading Days4	Total ADV	Total Credit	High-Grade	High-Yield	Emerging Markets	Eurobonds	Municipal Bonds	Total Rates	US Govt. Bonds	Agcy./Other Govt. Bonds
Feb-25	19/20	$43,363	$15,493	$7,061	$1,438	$4,105	$2,272	$614	$27,870	$26,901	$969
Jan-25	21/22	$38,926	$14,473	$6,912	$1,284	$3,638	$2,100	$535	$24,453	$23,374	$1,079
Feb-24	20/21	$34,261	$15,176	$7,712	$1,441	$3,626	$1,952	$434	$19,085	$18,613	$472
YoY % Change		27%	2%	(8%)	–	13%	16%	41%	46%	45%	105%
MoM % Change		11%	7%	2%	12%	13%	8%	15%	14%	15%	(10%)

Table 1A: February 2025 estimated market share

	CREDIT				RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High-Yield Combined	Municipals	US Govt. Bonds
Feb-25	17.0%	11.1%	15.6%	6.9%	2.7%
Jan-25	17.7%	12.0%	16.4%	5.8%	2.6%
Feb-24	19.5%	12.9%	18.1%	6.8%	2.0%
YoY Bps Change	(250) bps	(180) bps	(250) bps	+10 bps	+70 bps
MoM Bps Change	(70) bps	(90) bps	(80) bps	+110 bps	+10 bps

1	The FPM for total credit and total rates for February 2025 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 currently highlighting the impact of single-dealer portfolio trading volume on U.S. high-grade and U.S. high-yield trading volume and estimated market share, but will continue to exclude single-dealer portfolio trading activity from each product’s aggregated trading volume and estimated market share and the total credit FPM calculation.
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 U.S. trading days is based on the SIFMA holiday recommendation calendar and the number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

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.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for the 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; issues related to the development and use of artificial intelligence; 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 use of open-source software; 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 U.K. and European Union legal and regulatory requirements following 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 tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; 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. Approximately 2,100 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 February 28/29,
In millions (unaudited)			2025								2024									% Change
			Volume				ADV				Volume					ADV				Volume				ADV
Credit
High-grade			$	134,161			$	7,061			$	154,246				$	7,712				(13	)	%		(8	)	%
High-yield				27,320				1,438				28,821					1,441				(5	)			-
Emerging markets				78,000				4,105				72,517					3,626				8				13
Eurobonds				45,440				2,272				40,986					1,952				11				16
Other credit				11,718				617				8,912					445				31				39
Total credit trading1				296,639				15,493				305,482					15,176				(3	)			2
Rates
U.S. government bonds2				511,116				26,901				372,261					18,613				37				45
Agency and other government bonds1				19,243				969				9,750					472				97				105
Total rates trading				530,359				27,870				382,011					19,085				39				46
Total trading			$	826,998			$	43,363			$	687,493				$	34,261				20				27
Number of U.S. Trading Days3							19									20
Number of U.K. Trading Days4							20									21
			Year-to-Date Ended February 28/29,
In millions (unaudited)			2025								2024									% Change
			Volume				ADV				Volume					ADV				Volume				ADV
Credit
High-grade			$	279,313			$	6,983			$	311,339				$	7,594				(10	)	%		(8	)	%
High-yield				54,278				1,357				58,151					1,418				(7	)			(4	)
Emerging markets				154,402				3,860				150,766					3,677				2				5
Eurobonds				91,647				2,182				83,741					1,947				9				12
Other credit				23,051				576				17,685					431				30				34
Total credit trading1				602,691				14,958				621,682					15,067				(3	)			(1	)
Rates
U.S. government bonds2				1,001,968				25,049				716,788					17,483				40				43
Agency and other government bonds1				42,924				1,027				20,266					478				112				115
Total rates trading				1,044,892				26,076				737,054					17,961				42				45
Total trading			$	1,647,583			$	41,034			$	1,358,736				$	33,028				21				24
Number of U.S. Trading Days3							40									41
Number of U.K. Trading Days4							42									43
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 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
4 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

Source: MarketAxess Holdings Inc.

FAQ

What was MarketAxess (MKTX) total trading volume in February 2025?

Total average daily volume was $43.4 billion, increasing 27% year-over-year and 11% from January 2025.

How did MKTX U.S. high-grade credit market share perform in February 2025?

U.S. high-grade credit market share declined to 17.8% from 19.5% in the prior year.

What was MKTX's portfolio trading performance in February 2025?

Portfolio trading ADV reached $1.5 billion, up 131% year-over-year, with 20.7% market share of U.S. credit TRACE portfolio trading.

How did MKTX's emerging markets trading perform in February 2025?

Emerging markets achieved record ADV of $4.1 billion, up 13% year-over-year, with strong growth in block trading.

What new products is MKTX launching in Q2 2025?

MKTX plans to launch High Touch block trading solution in the U.S. and dealer Mid-X protocol on Pragma technology.