MarketAxess Expands Data Intelligence Suite With Launch of Tradable Index

Rhea-AI Summary

MarketAxess Holdings Inc. (Nasdaq: MKTX) has launched the MKTX U.S. Investment Grade 400 Corporate Bond Index on March 16, 2022. This index tracks 400 U.S. dollar-denominated investment grade corporate bonds known for high liquidity. By utilizing proprietary liquidity and pricing data, MarketAxess aims to enhance transparency and trading efficiency in the fixed income market. The index is expected to facilitate tactical portfolio adjustments and improve market participation, highlighting a commitment to innovation in fixed-income data solutions.

Positive

• Launch of MKTX 400 Index enhances tradability in fixed income market.
• Uses proprietary data to improve liquidity and transparency.
• Aims to facilitate tactical portfolio adjustments and enhance market participation.

Negative

• None.

Launch of the MKTX U.S. Investment Grade 400 Corporate Bond Index

NEW YORK, March 16, 2022 (GLOBE NEWSWIRE) -- 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 the launch of the MKTX U.S. Investment Grade 400 Corporate Bond Index (MKTX 400 Index). The launch of MarketAxess’ first tradable index underscores the company’s long-term commitment to creating innovative and actionable data solutions in the fixed income market.

The MKTX 400 Index, administered by MarketAxess Technologies Inc., tracks the performance of 400 U.S. dollar denominated investment grade corporate bonds with higher-than-average liquidity relative to the broader U.S. corporate bond market. Powered by MarketAxess’ proprietary liquidity and pricing data – Relative Liquidity Score and Composite+™ pricing engine – the Index combines actionable liquidity with broad market exposure.

Chris Concannon, President and Chief Operating Officer at MarketAxess, commented, “MarketAxess has a unique view into the traditionally fragmented and less liquid fixed income market. We are leveraging our proprietary data sources to construct an index with improved liquidity, transparency and a high availability of the constituent bonds.”  

MarketAxess’ data capabilities support real-time pricing, liquidity assessment and valuation, allowing for greater transparency and tradability in index products. The application of tradable and liquid indices extends beyond ETFs to enhance portfolio functions, such as tactical adjustments, optimizing cash positions, rebalancing, diversification, streamlined create/redeem processes and building block portfolios, as well as acting as substitutes for CDX or TRS vehicles.   

Kat Sweeney, Head of Index and ETF Solutions at MarketAxess, added, “We’ve seen in our data how index products like ETFs are transforming the bond market, and we believe they will be an increasingly important driver of the market. Our MKTX 400 Index prioritizes tradability and liquidity. By defining the eligible bond universe by liquidity factors, we can help reduce the cost of implementation, increase two-sided market participation and improve transparency, without deviating from traditional market performance measures.” 

For more information on this and future MarketAxess tradable indices, please visit: https://www.marketaxess.com/trade/indices.  

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. Nearly 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.

Media Relations Contacts: 
Marisha Mistry 
MarketAxess Holdings Inc. 
+1 917 267 123
mmistry@marketaxess.com 

Davis MacMillan 
RF | Binder  
+1 212 994 7509  
MarketAxessPR@rfbinder.com 

FAQ

What is the MKTX U.S. Investment Grade 400 Corporate Bond Index?

The MKTX U.S. Investment Grade 400 Corporate Bond Index tracks the performance of 400 highly liquid U.S. dollar-denominated investment grade corporate bonds.

When was the MKTX 400 Index launched?

The MKTX 400 Index was launched on March 16, 2022.

How does the MKTX 400 Index enhance trading efficiency?

It enhances trading efficiency by leveraging proprietary liquidity and pricing data, improving market transparency and tradability.

Who administers the MKTX 400 Index?

The MKTX 400 Index is administered by MarketAxess Technologies Inc.

What is the significance of the MKTX 400 Index for investors?

The MKTX 400 Index is significant for investors as it aims to reduce implementation costs and increase market participation.