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 May 2024.1
Chris Concannon, CEO of MarketAxess, commented:
“In May, we delivered strong growth in total credit ADV of 11.1%, driven by a 21.8% increase in emerging markets, a 24.8% increase in Eurobonds and a 43.2% increase in municipal bonds on record municipal bond market share of 8.1%. Our estimated market share of U.S. high-grade portfolio trading was 21.8%, up from 12.8% in the prior year, and up from 15.4% in April, reflecting strong gains in portfolio trading. In May, approximately 55% of our portfolio trading volume was executed on X-Pro, as we continue the roll-out to our largest clients.”
Select May highlights*
- Total average daily volume (“ADV”) of $32.2 billion, up 13.5% on strong growth in total credit ADV to $13.4 billion, up 11.1%, and a 15.2% increase in total rates trading ADV.
U.S. Credit
- U.S. high-grade ADV of $6.1 billion, up 6.2% on a 15.2% increase in estimated market ADV. The strong increase in market volumes included a 35% increase in portfolio trading and dealer-to-dealer trading volume combined in May, which represented approximately 72% of the growth of the market year-over-year. Estimated market share was 18.6% (19.2% including single-dealer portfolio trades),2 down from 20.2% (no impact from single-dealer portfolio trades).2
- U.S. high-yield ADV of $1.3 billion, down 13.1%, with estimated market share of 12.8% (13.1% including single-dealer portfolio trades),2 down from 16.7% (16.8% including single-dealer portfolio trades).2 U.S. high-yield estimated market ADV increased 13.2%. We believe the decrease in U.S. high-yield estimated market share year-over-year was driven, in part, by lower levels of credit spread volatility and a greater focus on the new issue calendar by our long-only client segment.
- Lower levels of credit spread volatility drove an estimated 37.2% decrease in ETF market maker client activity on the platform in May compared to the prior year.
- U.S. high-yield new issuance was $33.6 billion in May, up 51.5% from the prior year.
Other Credit
- Emerging markets ADV of $3.1 billion, up 21.8%. The year-over-year increase was due to a 13.2% increase in hard currency trading ADV and a 34.1% increase in local currency markets ADV.3
- Eurobonds ADV of $2.3 billion, up 24.8%.3
- Municipal bond ADV of $577 million, up 43.2%, with estimated market ADV down 1.1% compared to the prior year. Record estimated market share of 8.1%, up from 5.6% in the prior year.3
Select Protocols, Open Trading® & Workflow Tools
- $18.6 billion in total portfolio trading volume, up 136.2%. Approximately 55% of our portfolio trading volume was executed on X-Pro. Our estimated market share of U.S. high-grade portfolio trading was 21.8%, up from 12.8% in the prior year, and up from 15.4% in April. Portfolio trading represented an estimated 7.6% of total TRACE, up from an estimated 5.5% in the prior year, but down from an estimated 10.1% in April.
- 35% Open Trading share4 of total credit trading volume, up from 34% in the prior year.
- Dealer RFQ ADV of $1.1 billion across all credit products increased 24.1%.
- AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $147 million, up 28.8% from the prior year.
Rates
- Total rates ADV of $18.8 billion, up 15.2% versus the prior year.
Variable Transaction Fees Per Million (FPM)
- The preliminary FPM1 for total credit for May was approximately $149, down from $164 in the prior year, but in line with $150 in April. The preliminary FPM for total rates was approximately $4.40, compared to $4.60 in the prior year.
*All comparisons versus May 2023 unless otherwise noted.
Table 1: May 2024 trading ADV
CREDIT | RATES | ||||||||||
$ in millions (unaudited) |
US/UK Trading Days5 |
Total ADV |
Total Credit |
High-Grade | High-Yield | Emerging Markets |
Eurobonds | Municipal Bonds |
Total Rates |
US Govt. Bonds |
Agcy./Other Govt. Bonds |
May-24 |
22/20 |
$32,172 |
$13,372 |
$6,122 |
$1,320 |
$3,074 |
$2,274 |
$577 |
$18,800 |
$18,072 |
$728 |
May-23 |
22/20 |
$28,354 |
$12,040 |
$5,763 |
$1,519 |
$2,524 |
$1,822 |
$403 |
$16,314 |
$15,907 |
$407 |
% Change |
|
13% |
11% |
6% |
(13%) |
22% |
25% |
43% |
15% |
14% |
79% |
Table 1A: May 2024 estimated market share
CREDIT | RATES | ||||
|
High-Grade | High-Yield | High-Grade/High-Yield Combined |
Municipals3 | US Govt. Bonds3 |
May-24 |
18.3% |
12.8% |
17.1% |
6.8% |
2.0% |
May-23 |
20.2% |
16.7% |
19.3% |
5.6% |
2.1% |
Bps Change |
(230) bps |
(280) bps |
(220) bps |
+120 bps |
10 bps |
1 The FPM for total credit and total rates for May 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.
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.
3 See “General Notes Regarding the Data Presented” below.
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.
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.
General Notes Regarding the Data Presented
Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes and TRACE reported volumes are available on the Company’s website at investor.marketaxess.com/volume.
Beginning with January 2024, the Company is no longer providing Emerging Markets or Eurobonds market ADV or estimated market share.
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 |
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Month Ended May 31, |
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In millions (unaudited) |
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|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
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|
Volume |
|
|
ADV |
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|
||||||
Credit |
|
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|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
134,675 |
|
|
$ |
6,122 |
|
|
$ |
126,777 |
|
|
|
$ |
5,763 |
|
|
|
6.2 |
|
% |
|
6.2 |
|
% |
High-yield |
|
|
|
29,044 |
|
|
|
1,320 |
|
|
|
33,419 |
|
|
|
|
1,519 |
|
|
|
(13.1 |
) |
|
|
(13.1 |
) |
|
Emerging markets |
|
|
|
67,625 |
|
|
|
3,074 |
|
|
|
55,533 |
|
|
|
|
2,524 |
|
|
|
21.8 |
|
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|
21.8 |
|
|
Eurobonds |
|
|
|
45,471 |
|
|
|
2,274 |
|
|
|
36,443 |
|
|
|
|
1,822 |
|
|
|
24.8 |
|
|
|
24.8 |
|
|
Other credit |
|
|
|
12,836 |
|
|
|
582 |
|
|
|
9,076 |
|
|
|
|
412 |
|
|
|
41.4 |
|
|
|
41.3 |
|
|
Total credit trading1 |
|
|
|
289,651 |
|
|
|
13,372 |
|
|
|
261,248 |
|
|
|
|
12,040 |
|
|
|
10.9 |
|
|
|
11.1 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government bonds2 |
|
|
|
397,586 |
|
|
|
18,072 |
|
|
|
349,959 |
|
|
|
|
15,907 |
|
|
|
13.6 |
|
|
|
13.6 |
|
|
Agency and other government bonds1 |
|
|
|
14,744 |
|
|
|
728 |
|
|
|
8,521 |
|
|
|
|
407 |
|
|
|
73.0 |
|
|
|
78.9 |
|
|
Total rates trading |
|
|
|
412,330 |
|
|
|
18,800 |
|
|
|
358,480 |
|
|
|
|
16,314 |
|
|
|
15.0 |
|
|
|
15.2 |
|
|
Total trading |
|
|
$ |
701,981 |
|
|
$ |
32,172 |
|
|
$ |
619,728 |
|
|
|
$ |
28,354 |
|
|
|
13.3 |
|
|
|
13.5 |
|
|
Number of U.S. Trading Days3 |
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
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|
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||
Number of U.K. Trading Days4 |
|
|
|
|
|
|
20 |
|
|
|
|
|
|
|
20 |
|
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Year-to-Date Ended May 31, |
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In millions (unaudited) |
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|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
Volume |
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|
ADV |
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|
Volume |
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|
ADV |
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|
Volume |
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|
ADV |
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Credit |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
High-grade |
|
|
$ |
735,624 |
|
|
$ |
7,006 |
|
|
$ |
627,086 |
|
|
|
$ |
6,088 |
|
|
|
17.3 |
|
% |
|
15.1 |
|
% |
High-yield |
|
|
|
145,839 |
|
|
|
1,389 |
|
|
|
183,754 |
|
|
|
|
1,784 |
|
|
|
(20.6 |
) |
|
|
(22.1 |
) |
|
Emerging markets |
|
|
|
363,206 |
|
|
|
3,459 |
|
|
|
295,995 |
|
|
|
|
2,874 |
|
|
|
22.7 |
|
|
|
20.4 |
|
|
Eurobonds |
|
|
|
216,884 |
|
|
|
2,085 |
|
|
|
196,737 |
|
|
|
|
1,929 |
|
|
|
10.2 |
|
|
|
8.1 |
|
|
Other credit |
|
|
|
49,097 |
|
|
|
467 |
|
|
|
45,307 |
|
|
|
|
440 |
|
|
|
8.4 |
|
|
|
6.1 |
|
|
Total credit trading1 |
|
|
|
1,510,650 |
|
|
|
14,406 |
|
|
|
1,348,879 |
|
|
|
|
13,115 |
|
|
|
12.0 |
|
|
|
9.8 |
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government bonds2 |
|
|
|
1,873,806 |
|
|
|
17,846 |
|
|
|
2,125,292 |
|
|
|
|
20,634 |
|
|
|
(11.8 |
) |
|
|
(13.5 |
) |
|
Agency and other government bonds1 |
|
|
|
61,582 |
|
|
|
591 |
|
|
|
44,792 |
|
|
|
|
438 |
|
|
|
37.5 |
|
|
|
34.9 |
|
|
Total rates trading |
|
|
|
1,935,388 |
|
|
|
18,437 |
|
|
|
2,170,084 |
|
|
|
|
21,072 |
|
|
|
(10.8 |
) |
|
|
(12.5 |
) |
|
Total trading |
|
|
$ |
3,446,038 |
|
|
$ |
32,843 |
|
|
$ |
3,518,963 |
|
|
|
$ |
34,187 |
|
|
|
(2.1 |
) |
|
|
(3.9 |
) |
|
Number of U.S. Trading Days3 |
|
|
|
|
|
|
105 |
|
|
|
|
|
|
|
103 |
|
|
|
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Number of U.K. Trading Days4 |
|
|
|
|
|
|
104 |
|
|
|
|
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|
|
102 |
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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, U.S. government bond trades are single-counted. |
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3 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar. |
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4 The number of U.K. trading days is based primarily on the U.K. Bank holiday schedule. |
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