MarketAxess Announces Trading Volume Statistics for January 2025

Rhea-AI Summary

MarketAxess Holdings (Nasdaq: MKTX) reported its January 2025 trading statistics, showing mixed results across different segments. Total average daily volume (ADV) reached $38.9 billion, up 22% year-over-year and month-over-month. While total rates ADV increased by 45% to $24.5 billion, total credit ADV declined 3% to $14.5 billion compared to the previous year.

The company experienced market share declines in key segments: U.S. high-grade market share fell to 17.7% from 19.1% year-over-year, and U.S. high-yield dropped to 12.0% from 13.0%. Portfolio trading showed mixed results, with Eurobonds volume increasing 219% year-over-year, while total portfolio trading ADV grew only 1%. The preliminary variable transaction fees per million for total credit decreased to $141 from $156 year-over-year.

Positive

• Total ADV increased 22% YoY to $38.9 billion
• Total rates ADV grew 45% YoY to $24.5 billion
• Record Dealer RFQ ADV reached $1.5 billion, up 23% YoY
• Municipal bond ADV increased 32% YoY to $535 million
• Eurobonds portfolio trading volume increased 219% YoY

Negative

• U.S. high-grade market share declined to 17.7% from 19.1% YoY
• U.S. high-yield market share dropped to 12.0% from 13.0% YoY
• Total credit ADV decreased 3% YoY to $14.5 billion
• Variable transaction fees per million for total credit declined to $141 from $156 YoY
• Open Trading share decreased to 34% from 35% YoY

Insights

Financial Market Analyst

The January 2025 trading statistics for MarketAxess present a complex picture that requires careful analysis. The headline 22% YoY increase in total ADV to $38.9B masks underlying challenges in the company's core credit trading business. The divergence between rates and credit performance is particularly noteworthy.

Three critical developments deserve investor attention:

• The continued erosion of market share in U.S. high-grade (down 140 bps YoY to 17.7%) and high-yield (down 100 bps YoY to 12.0%) segments signals intensifying competition in electronic fixed-income trading.
• The 219% YoY growth in Eurobond portfolio trading volume demonstrates the success of the X-Pro platform launch, suggesting potential for international expansion.
• The decline in total credit FPM to $141 from $156 YoY, primarily due to lower duration trading, may pressure revenue growth despite higher volumes.

The strategic shift toward multi-protocol offerings appears to be gaining traction, evidenced by the record Dealer RFQ ADV of $1.5B (up 23% YoY). However, the declining share of Open Trading (34% vs. 35% YoY) suggests a need to reassess the balance between maintaining profitability and competitive positioning.

The emerging markets segment shows resilience with record block trading ADV in hard currency, partially offsetting weakness in local currency trading. This geographic diversification could provide a buffer against U.S. market share pressure.

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 January 2025.¹

Chris Concannon, CEO of MarketAxess, commented:

“Our investments in protocols and workflow tools across the client-initiated, portfolio trading and dealer-initiated channels are beginning to show early signs of progress. While we are disappointed with our U.S. credit market share in January, in the client-initiated channel, we generated record block trading ADV in emerging markets hard currency. In the portfolio trading channel, we are continuing to build momentum after our launch of global portfolio trading on X-Pro in November 2024. Portfolio trading volume in Eurobonds increased 219% from January 2024 levels and increased 26% from December 2024. Additionally, we launched benchmark pricing for portfolio trading in Europe at the end of January, which is an important enhancement for our clients. Last, in the dealer-initiated channel, we generated record ADV in Dealer RFQ of $1.5 billion, up 23% from the prior year, and up 45% from December 2024 levels. We believe that the enhancements we have made will continue to show progress in the coming quarters and enhance our market share.”

Select January 2025 Highlights

• Total average daily volume (“ADV”) of $38.9 billion increased 22% compared to the prior year, and increased 22% compared to December 2024 levels. Total rates ADV of $24.5 billion increased 45% compared to the prior year, and increased 24% compared to December 2024. Total credit ADV of $14.5 billion was down 3% compared to the prior year, but increased 18% compared to December 2024.

U.S. Credit²

• U.S. high-grade ADV of $6.9 billion decreased 8% compared to the prior year, but increased 17% compared to December 2024. Estimated market ADV increased 0.2% compared to the prior year, and increased 29% compared to December 2024. Estimated market share was 17.7%, down from 19.1% in the prior year, and down from 19.5% in December 2024. Including the impact of single-dealer portfolio trades, estimated market share was 17.9%, down from 19.7% in the prior year, and down from 19.6% in December 2024.
• U.S. high-yield ADV of $1.3 billion decreased 8% compared to the prior year, but increased 5% compared to December 2024. Estimated market ADV decreased 0.4% compared to the prior year, and increased 29% compared to December 2024. Estimated market share was 12.0%, down from 13.0% in the prior year, and down from 14.7% in December 2024. Including the impact of single-dealer portfolio trades, estimated market share was 12.3%, down from 13.1% in the prior year, and down from 14.7% in December 2024.

Other Credit

• Emerging markets ADV of $3.6 billion decreased 2% compared to the prior year, but increased 27% compared to December 2024. The year-over-year decrease was driven by an 11% decrease in local currency ADV, offset by a 1% increase in hard currency ADV.
• Eurobonds ADV of $2.1 billion increased 8% compared to the prior year, and increased 30% compared to December 2024.
• Municipal bond ADV of $535 million increased 32% compared to the prior year, but decreased 18% compared to December 2024. Estimated market ADV increased 40% compared to the prior year, but decreased 5% compared to December 2024. Estimated market share was 5.8%, down from 6.2% in the prior year, and down from 6.8% in December 2024.

Strategic Priority Related Protocols & Workflow Tools

• $0.9 billion in total portfolio trading ADV increased 1% compared to the prior year, but decreased 12% compared to December 2024. 77% of portfolio trading volume was executed over X-Pro.
  • Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV decreased 7% compared to December 2024.
• Our estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 14.7% in January 2025, down from 16.7% in December 2024.
  • Portfolio trading represented approximately 9% of U.S. high-grade and U.S. high-yield TRACE in January 2025, down from 13% in December 2024.
• Open Trading ADV of $4.2 billion decreased 8% compared to the prior year, but increased 16% compared to December 2024. Open Trading share³ of total credit trading volume was 34%, down from 35% in the prior year, and down from 36% in December 2024.
• Record Dealer RFQ ADV of $1.5 billion across all credit products increased 23% compared to the prior year, and increased 45% compared to December 2024.
• AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $145 million, up 9% compared to the prior year, and up 8% compared to December 2024.

Rates

• Total rates ADV of $24.5 billion increased 45% compared to the prior year, and increased 24% compared to December 2024.

Variable Transaction Fees Per Million (FPM)¹

• The preliminary FPM for total credit for January 2025 was approximately $141, down from $156 in the prior year, and down from $148 in December 2024. The decline in total credit FPM year-over-year was due to product and protocol mix, principally the lower duration of bonds traded in U.S. high-grade, driven by a decrease in the weighted average years to maturity. The decrease in total credit FPM month-over-month was due to product mix, principally the lower duration of bonds traded in U.S. high-grade, driven by a decrease in the weighted average years to maturity, as well as less U.S. high-yield activity. The preliminary FPM for total rates for January 2025 was approximately $4.25, down from $5.39 in the prior year, but up from $4.14 in December 2024. The decline in total rates FPM year-over-year was driven by the impact of product mix within our rates business.

Table 1: January 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
Jan-25	21/22	$38,926	$14,473	$6,912	$1,284	$3,638	$2,100	$535	$24,453	$23,374	$1,079
Dec-24	21/20	$32,037	$12,285	$5,921	$1,219	$2,869	$1,619	$656	$19,752	$18,735	$1,017
Jan-24	21/22	$31,855	$14,964	$7,481	$1,397	$3,726	$1,943	$405	$16,891	$16,406	$485
YoY % Change		22%	(3%)	(8%)	(8%)	(2%)	8%	32%	45%	42%	122%
MoM % Change		22%	18%	17%	5%	27%	30%	(18%)	24%	25%	6%

Table 1A: January 2025 estimated market share

	CREDIT				RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High-Yield Combined	Municipals	US Govt. Bonds
Jan-25	17.7%	12.0%	16.4%	5.8%	2.6%
Dec-24	19.5%	14.7%	18.5%	6.8%	2.3%
Jan-24	19.1%	13.0%	17.8%	6.2%	1.8%
YoY Bps Change	(140) bps	(100) bps	(140) bps	(40) bps	+80 bps
MoM Bps Change	(180) bps	(270) bps	(210) bps	(100) bps	+30 bps

1 The FPM for total credit and total rates for January 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; 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 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; adverse effects as a result of climate change or other ESG risks that could affect our 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. 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 January 31,
In millions (unaudited)			2025									2024									% Change
			Volume					ADV				Volume					ADV				Volume				ADV
Credit
High-grade			$	145,152				$	6,912			$	157,093				$	7,481				(8	)	%		(8	)	%
High-yield				26,958					1,284				29,330					1,397				(8	)			(8	)
Emerging markets				76,402					3,638				78,249					3,726				(2	)			(2	)
Eurobonds				46,207					2,100				42,755					1,943				8				8
Other credit				11,333					539				8,767					417				29				29
Total credit trading1				306,052					14,473				316,194					14,964				(3	)			(3	)
Rates
U.S. government bonds2				490,852					23,374				344,527					16,406				42				42
Agency and other government bonds1				23,681					1,079				10,516					485				125				122
Total rates trading				514,533					24,453				355,043					16,891				45				45
Total trading			$	820,585				$	38,926			$	671,237				$	31,855				22				22
Number of U.S. Trading Days3								21									21
Number of U.K. Trading Days4								22									22
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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20250204834643/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 (MKTX) total average daily trading volume in January 2025?

MarketAxess reported a total average daily volume (ADV) of $38.9 billion in January 2025, representing a 22% increase compared to both the prior year and December 2024.

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

MKTX U.S. high-grade market share was 17.7% in January 2025, down from 19.1% in the prior year and 19.5% in December 2024.

What was MKTX's portfolio trading performance in Eurobonds for January 2025?

Portfolio trading volume in Eurobonds increased 219% from January 2024 levels and rose 26% from December 2024.

How much did MKTX's transaction fees per million change in January 2025?

The preliminary FPM for total credit decreased to $141 in January 2025, down from $156 in the prior year and $148 in December 2024.

What was MKTX's Dealer RFQ performance in January 2025?

MKTX achieved record Dealer RFQ ADV of $1.5 billion across all credit products, up 23% year-over-year and 45% from December 2024.