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 August 2024. 1
Chris Concannon, CEO of MarketAxess, commented:
“A favorable market environment helped deliver strong year-over-year, and solid month-over-month results in August. We delivered 27% growth in total credit ADV year-over-year, driven by a 34% increase in U.S. high-grade, a 25% increase in emerging markets, a 19% increase in Eurobonds, and a 49% increase in municipal bonds. We also generated record portfolio trading ADV of $988 million. Our leadership position in the global credit institutional e-trading space remains strong, and we are beginning the roll-out of X-Pro to our global client base later this month.”
Select August 2024 highlights*
- Total average daily volume (“ADV”) of $41.6 billion , up 39.6% ( +18.4% compared to July 2024). This strong performance was driven by a 27.4% ( +3.6% compared to July 2024) increase in total credit ADV, and a 46.1% ( +26.9% compared to July 2024) increase in total rates ADV.
U.S. Credit 2
- U.S. high-grade ADV of $6.7 billion , up 33.7% ( +10.0% compared to July 2024) on a 38.4% ( +2.4% compared to July 2024) increase in estimated market ADV. Estimated market share was 19.9% , down from 20.6% in the prior year, but up from 18.6% in July 2024. Including the impact of single-dealer portfolio trades , estimated market share was 20.9% in August 2024, up from 20.7% in the prior year, and up from 18.7% in July 2024.
- U.S. high-yield ADV of $1.3 billion , up 7.2% ( +14.0% compared to July 2024), with estimated market share of 14.4% ( 14.6% including the impact of single-dealer portfolio trades), down from 15.9% in the prior year, but up from 12.5% ( 13.1% including the impact of single-dealer portfolio trades) in July 2024. U.S. high-yield estimated market ADV increased 17.9% (down 0.8% compared to July 2024).
Other Credit
- Emerging markets ADV of $3.2 billion , up 25.5% , ( +1.0% compared to July 2024) with strong regional contribution across the LATAM , EMEA and APAC regions. The year-over-year increase was driven by a 14.6% increase in hard currency ADV, and a 35.6% increase in local currency markets ADV.
- Eurobonds ADV of $1.5 billion , up 19.0% (down 18.8% compared to July 2024).
- Municipal bond ADV of $580 million , up 49.5% , ( +0.9% compared to July 2024), with estimated market ADV down 3.0% ( +1.3% compared to July 2024). Estimated market share of 8.6% , up from 5.6% in the prior year, and in line with 8.6% in July 2024. 3
Strategic Priority Related Protocols & Workflow Tools
- Record $988 million in portfolio trading ADV, up 125.6% from August 2023, and up 1.6% from July 2024. Our estimated market share of U.S. high grade and U.S. high-yield TRACE portfolio trading was 21.8% in August 2024, up from 17.2% in July 2024. Portfolio trading represented 9.5% of U.S. high-grade and U.S. high-yield TRACE in August 2024, compared to 10.6% in July 2024.
- 36% Open Trading share 4 of total credit trading volume, up from 34% in the prior year, and up from 35% in July 2024.
- Dealer RFQ ADV of $1.1 billion across all credit products increased 15.0% from the prior year, and increased 2.6% from July 2024.
- AxessIQ , the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $112 million , up 32.8% from the prior year, but down 3.6% from July 2024.
Rates
- Total rates ADV of $28.4 billion , up 46.1% versus the prior year, and up 26.9% compared to July 2024. 3
Variable Transaction Fees Per Million (FPM)
- The preliminary FPM 1 for total credit for August 2024 was approximately $154 , in line with $154 in the prior year, but up from $143 in July 2024. The increase compared to July 2024 was due to the higher duration of bonds traded in U.S. high-grade, principally driven by an increase in the weighted average years to maturity, and the impact of product and protocol mix . The preliminary FPM for total rates was approximately $4.00 , compared to $4.35 in the prior year.
*All comparisons versus August 2023 unless otherwise noted.
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Table 1: August 2024 ADV |
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|
CREDIT |
RATES |
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|
$ in millions (unaudited) |
US/UK Trading Days 5 |
Total ADV |
Total Credit |
High-Grade |
High-Yield |
Emerging Markets |
Eurobonds |
Municipal Bonds |
Total Rates |
US Govt. Bonds |
Agcy./Other Govt. Bonds |
|
Aug-24 |
22/21 |
$41,610 |
$13,253 |
$6,702 |
$1,286 |
$3,187 |
$1,488 |
$580 |
$28,357 |
$27,305 |
$1,052 |
|
Jul-24 |
22/23 |
$35,135 |
$12,791 |
$6,090 |
$1,128 |
$3,157 |
$1,832 |
$575 |
$22,344 |
$21,332 |
$1,012 |
|
Aug-23 |
23/22 |
$29,805 |
$10,399 |
$5,011 |
$1,200 |
$2,540 |
$1,250 |
$388 |
$19,406 |
$19,072 |
$334 |
|
YoY % Change |
|
40% |
27% |
34% |
7% |
25% |
19% |
49% |
46% |
43% |
215% |
|
MoM % Change |
|
18% |
4% |
10% |
14% |
1% |
(19%) |
1% |
27% |
28% |
4% |
|
Table 1A: August 2024 estimated market share |
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|
CREDIT |
RATES |
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| (unaudited) | High-Grade | High-Yield |
High-Grade/High-Yield Combined |
Municipals 3 |
US Govt. Bonds 3 |
|
Aug-24 |
19.9% |
14.4% |
18.8% |
8.6% |
2.7% |
|
Jul-24 |
18.6% |
12.5% |
17.3% |
8.6% |
2.5% |
|
Aug-23 |
20.6% |
15.9% |
19.5% |
5.6% |
2.7% |
|
YoY Bps Change |
(70) bps |
(150) bps |
(70) bps |
+300 bps |
- bps |
|
MoM Bps Change |
+130 bps |
+190 bps |
+150 bps |
- bps |
+20 bps |
| 1 The FPM for total credit and total rates for August 2024 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. | |||||
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2 The Company is 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. |
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3 See “General Notes Regarding the Data Presented” below. |
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4 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. |
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5 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. |
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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 .
In addition, for periods beginning with January 2024, the Company has made changes to the market volume data used to calculate estimated market share for Municipal and U.S. Government Bonds. For Municipal Bonds, the Company previously used estimates, derived from data issued by the Municipal Securities Rule Making Board (“MSRB”), including estimates for new issuance, commercial paper and variable-rate trading activity, and excluded these volumes from the estimated market volume data. While the Company still uses estimates, the new methodology for identifying and excluding these volumes from the market volume data is now based on MSRB “flags” to identify new issuance, commercial paper, and variable-rate volumes. For U.S. Government Bonds, the previous data source for estimated market volumes was the Federal Reserve Bank’s Reported Primary Dealer U.S. Treasury Bond Trading Volumes, which was reported on a one-week lag. The new source for U.S. Government Bond trading volumes is FINRA’s U.S. Treasury TRACE data. The Company believes that the refined methodology used for Municipal Bonds, and the new data source for U.S. Government Bonds, provides more accurate measures of estimated market volumes and estimated market share. Prior comparable periods have been recast retrospectively for both Municipal and U.S. Government Bonds to conform to the updated presentation of the data. The new estimated market volume data is also available on the Company’s website at investor.marketaxess.com/volume .
| Table 2: Trading Volume Detail | |||||||||||||||||||
| Month Ended August 31, | |||||||||||||||||||
| In millions (unaudited) |
2024 |
2023 |
% Change | ||||||||||||||||
| Volume | ADV | Volume | ADV | Volume | ADV | ||||||||||||||
| Credit | |||||||||||||||||||
| High-grade |
$ |
147,449 |
$ |
6,702 |
$ |
115,260 |
$ |
5,011 |
27.9 |
% |
33.7 |
% |
|||||||
| High-yield |
|
28,284 |
|
1,286 |
|
27,594 |
|
1,200 |
2.5 |
7.2 |
|||||||||
| Emerging markets |
|
70,115 |
|
3,187 |
|
58,421 |
|
2,540 |
20.0 |
25.5 |
|||||||||
| Eurobonds |
|
31,240 |
|
1,488 |
|
27,498 |
|
1,250 |
13.6 |
19.0 |
|||||||||
| Other credit |
|
12,970 |
|
590 |
|
9,163 |
|
398 |
41.5 |
48.2 |
|||||||||
| Total credit trading 1 |
|
290,058 |
|
13,253 |
|
237,936 |
|
10,399 |
21.9 |
27.4 |
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| Rates | |||||||||||||||||||
| U.S. government bonds 2 |
|
600,715 |
|
27,305 |
|
438,656 |
|
19,072 |
36.9 |
43.2 |
|||||||||
| Agency and other government bonds 1 |
|
22,233 |
|
1,052 |
|
7,489 |
|
334 |
196.9 |
215.0 |
|||||||||
| Total rates trading |
|
622,948 |
|
28,357 |
|
446,145 |
|
19,406 |
39.6 |
46.1 |
|||||||||
| Total trading |
$ |
913,006 |
$ |
41,610 |
$ |
684,081 |
$ |
29,805 |
33.5 |
39.6 |
|||||||||
| Number of U.S. Trading Days 3 |
|
22 |
|
23 |
|||||||||||||||
| Number of U.K. Trading Days 4 |
|
21 |
|
22 |
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| Year-to-Date Ended August 31, | |||||||||||||||||||
| In millions (unaudited) |
2024 |
2023 |
% Change | ||||||||||||||||
| Volume | ADV | Volume | ADV | Volume | ADV | ||||||||||||||
| Credit | |||||||||||||||||||
| High-grade |
$ |
1,142,868 |
$ |
6,803 |
$ |
964,490 |
$ |
5,775 |
18.5 |
% |
17.8 |
% |
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| High-yield |
|
222,717 |
|
1,326 |
|
269,258 |
|
1,612 |
(17.3) |
(17.7) |
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| Emerging markets |
|
571,199 |
|
3,400 |
|
477,451 |
|
2,859 |
19.6 |
18.9 |
|||||||||
| Eurobonds |
|
330,492 |
|
1,967 |
|
295,018 |
|
1,767 |
12.0 |
11.3 |
|||||||||
| Other credit |
|
85,522 |
|
509 |
|
69,718 |
|
417 |
22.7 |
22.1 |
|||||||||
| Total credit trading 1 |
|
2,352,798 |
|
14,005 |
|
2,075,935 |
|
12,430 |
13.3 |
12.7 |
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| Rates | |||||||||||||||||||
| U.S. government bonds 2 |
|
3,352,733 |
|
19,957 |
|
3,200,682 |
|
19,166 |
4.8 |
4.1 |
|||||||||
| Agency and other government bonds 1 |
|
125,518 |
|
748 |
|
69,361 |
|
415 |
81.0 |
80.2 |
|||||||||
| Total rates trading |
|
3,478,251 |
|
20,705 |
|
3,270,043 |
|
19,581 |
6.4 |
5.7 |
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| Total trading |
$ |
5,831,049 |
$ |
34,710 |
$ |
5,345,978 |
$ |
32,011 |
9.1 |
8.4 |
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| Number of U.S. Trading Days 3 |
|
168 |
|
167 |
|||||||||||||||
| Number of U.K. Trading Days 4 |
|
168 |
|
167 |
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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. | |||||||||||||||||||
| 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. | |||||||||||||||||||
