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 October 2024. 1
Chris Concannon, CEO of MarketAxess, commented:
“We delivered the second straight month of record total trading ADV in October , driven by continued robust market volumes and strength in our international businesses. Our rates business also generated record ADV in October, surpassing the previous monthly record set during a period of extreme market volatility in March 2020.
While we are disappointed with the absolute level of market share in U.S. high-grade in October, we were pleased to see record trading volumes, an increase in U.S. high-yield estimated market share compared to September and an increase in our preliminary total credit fee capture during the month. Most importantly, our preliminary total credit variable commission revenue in October was slightly above September levels. We believe the decline in our high-grade market share was driven by lower portfolio trading and a client shift to large block trading in the market. Large portfolio trades in the market and the mix of activity across U.S. high-grade TRACE can generate significant swings in market share without materially impacting revenue generation.
We are continuing the roll-out of X-Pro to our global client base and we now have our block solution in the market, which we believe will be integral to the success of our “high-touch” strategy.”
Select October 2024 Highlights
- Record total average daily volume (“ADV”) of $46.2 billion increased 40% compared to the prior year, and increased 2% compared to September 2024. These strong results were driven by total credit ADV of $15.0 billion , representing an increase of 19% compared to the prior year, and a decrease of 9% compared to September 2024. Record total rates ADV of $31.2 billion , which increased 54% compared to the prior year, and increased 9% compared to September 2024 levels, also contributed to the strong performance in October 2024.
- Record total trading volume of $1.0 trillion on the platform increased 47% compared to the prior year, and increased 12% compared to September 2024.
U.S. Credit 2
- U.S. high-grade ADV of $6.9 billion increased 15% compared to the prior year, but decreased 18% compared to September 2024. Estimated market ADV increased 30% compared to the prior year, but decreased 10% compared to September 2024. Estimated market share was 18.0% , down from 20.3% in the prior year, and down from 19.9% in September 2024. Including the impact of single-dealer portfolio trades , estimated market share was 18.7% , down from 20.6% in the prior year, and down from 20.3% in September 2024.
- U.S. high-yield ADV of $1.5 billion decreased 8% compared to the prior year, but increased 4% compared to September 2024. Estimated market ADV increased 15% compared to the prior year, but decreased 5% compared to September 2024. Estimated market share was 13.3% , down from 16.7% in the prior year, but up from 12.1% in September 2024. Including the impact of single-dealer portfolio trades , estimated market share was 13.9% , down from 16.9% in the prior year, but up from 12.5% in September 2024.
Other Credit
- Emerging markets ADV of $3.7 billion increased 33% compared to the prior year, and increased 1% compared to September 2024. The year-over-year increase was driven by a 42% increase in hard currency ADV, and a 22% increase in local currency ADV.
- Eurobonds ADV of $2.3 billion increased 37% compared to the prior year, but slightly decreased 1% compared to September 2024.
- Municipal bond ADV of $578 million increased 9% compared to the prior year, but was in line with September 2024. Estimated market ADV decreased 33% compared to the prior year, but increased 12% compared to September 2024. Estimated market share of 7.9% , up from 4.9% in the prior year, but down from a record 8.8% in September 2024. 3
Strategic Priority Related Protocols & Workflow Tools
- $1.2 billion in total portfolio trading ADV increased 72% compared to the prior year, but decreased 19% compared to September 2024.
— Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV decreased 22% compared to September 2024.
- Our estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 17.9% in October 2024, down from 20.8% in September 2024.
— Portfolio trading represented 10% of U.S. high-grade and U.S. high-yield TRACE in October 2024, compared to 12% in September 2024.
- Open Trading ADV of $4.5 billion , increased 17% compared to the prior year, but decreased 8% compared to September 2024. Open Trading share 4 of total credit trading volume was 35% , in line with the prior year and September 2024 levels.
- Dealer RFQ ADV of $1.3 billion across all credit products increased 26% compared to the prior year, but decreased 8% compared to September 2024.
- AxessIQ , the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $161 million , up 39% compared to the prior year, but down 3% compared to September 2024.
Rates
- Record total rates ADV of $31.2 billion , up 54% compared to the prior year, and up 9% compared to September 2024.
Variable Transaction Fees Per Million (FPM) 1
- The preliminary FPM for total credit for October 2024 was approximately $154 , up from $153 in the prior year, and up from $150 in September 2024. The preliminary FPM for total rates was approximately $4.40 , up from $4.30 in the prior year, and up from $4.18 in September 2024.
Table 1: October 2024 ADV
| CREDIT | RATES | ||||||||||
| $ 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 |
| Oct-24 |
22/23 |
$46,177 |
$15,022 |
$6,894 |
$1,493 |
$3,718 |
$2,333 |
$578 |
$31,155 |
$29,927 |
$1,228 |
|
Sep-24 |
20/21 |
$45,188 |
$16,483 |
$8,414 |
$1,434 |
$3,689 |
$2,359 |
$577 |
$28,705 |
$27,466 |
$1,239 |
|
Oct-23 |
21/22 |
$32,937 |
$12,655 |
$5,984 |
$1,623 |
$2,800 |
$1,707 |
$532 |
$20,282 |
$19,863 |
$419 |
|
YoY % Change |
|
40% |
19% |
15% |
(8%) |
33% |
37% |
9% |
54% |
51% |
193% |
|
MoM % Change |
|
2% |
(9%) |
(18%) |
4% |
1% |
(1%) |
– |
9% |
9% |
(1%) |
Table 1B: October 2024 estimated market share
| CREDIT | RATES | ||||
(unaudited) |
High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals 3 | US Govt. Bonds 3 |
|
Oct-24 |
18.0% |
13.3% |
16.9% |
7.9% |
3.2% |
|
Sep-24 |
19.9% |
12.1% |
18.2% |
8.8% |
2.8% |
|
Oct-23 |
20.3% |
16.7% |
19.4% |
4.9% |
2.4% |
|
YoY Bps Change |
(230) bps |
(340) bps |
(250) bps |
+300 bps |
+80 bps |
|
MoM Bps Change |
(190) bps |
+120 bps |
(130) bps |
(90) bps |
+40 bps |
|
1 The FPM for total credit and total rates for October 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, where material, 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. | |||||
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.
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.
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Table 2: Trading Volume Detail |
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Month Ended October 31, |
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|
||||||||||||||||||||||
|
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
151,660 |
|
|
$ |
6,894 |
|
|
$ |
125,665 |
|
|
|
$ |
5,984 |
|
|
|
21 |
|
% |
|
15 |
|
% |
|
High-yield |
|
|
|
32,848 |
|
|
|
1,493 |
|
|
|
34,080 |
|
|
|
|
1,623 |
|
|
|
(4 |
) |
|
|
(8 |
) |
|
|
Emerging markets |
|
|
|
81,797 |
|
|
|
3,718 |
|
|
|
58,793 |
|
|
|
|
2,800 |
|
|
|
39 |
|
|
|
33 |
|
|
|
Eurobonds |
|
|
|
53,667 |
|
|
|
2,333 |
|
|
|
37,559 |
|
|
|
|
1,707 |
|
|
|
43 |
|
|
|
37 |
|
|
|
Other credit |
|
|
|
12,847 |
|
|
|
584 |
|
|
|
11,359 |
|
|
|
|
541 |
|
|
|
13 |
|
|
|
8 |
|
|
|
Total credit trading 1 |
|
|
|
332,819 |
|
|
|
15,022 |
|
|
|
267,456 |
|
|
|
|
12,655 |
|
|
|
24 |
|
|
|
19 |
|
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government bonds 2 |
|
|
|
658,390 |
|
|
|
29,927 |
|
|
|
417,127 |
|
|
|
|
19,863 |
|
|
|
58 |
|
|
|
51 |
|
|
|
Agency and other government bonds 1 |
|
|
|
28,097 |
|
|
|
1,228 |
|
|
|
9,054 |
|
|
|
|
419 |
|
|
|
210 |
|
|
|
193 |
|
|
|
Total rates trading |
|
|
|
686,487 |
|
|
|
31,155 |
|
|
|
426,181 |
|
|
|
|
20,282 |
|
|
|
61 |
|
|
|
54 |
|
|
|
Total trading |
|
|
$ |
1,019,306 |
|
|
$ |
46,177 |
|
|
$ |
693,637 |
|
|
|
$ |
32,937 |
|
|
|
47 |
|
|
|
40 |
|
|
|
Number of U.S. Trading Days 3 |
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
21 |
|
|
|
|
|
|
|
|
|
|
||
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Number of U.K. Trading Days 4 |
|
|
|
|
|
|
23 |
|
|
|
|
|
|
|
22 |
|
|
|
|
|
|
|
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||
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Year-to-Date Ended October 31, |
|
|
||||||||||||||||||||||
|
In millions (unaudited) |
|
|
2024 |
|
|
2023 |
|
|
% Change |
|
|
||||||||||||||||
|
|
|
|
Volume |
|
|
ADV |
|
|
Volume |
|
|
|
ADV |
|
|
Volume |
|
|
ADV |
|
|
||||||
|
Credit |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
High-grade |
|
|
$ |
1,462,806 |
|
|
$ |
6,966 |
|
|
$ |
1,197,923 |
|
|
|
$ |
5,759 |
|
|
|
22 |
|
% |
|
21 |
|
% |
|
High-yield |
|
|
|
284,242 |
|
|
|
1,354 |
|
|
|
329,854 |
|
|
|
|
1,586 |
|
|
|
(14 |
) |
|
|
(15 |
) |
|
|
Emerging markets |
|
|
|
726,770 |
|
|
|
3,461 |
|
|
|
595,225 |
|
|
|
|
2,862 |
|
|
|
22 |
|
|
|
21 |
|
|
|
Eurobonds |
|
|
|
433,696 |
|
|
|
2,046 |
|
|
|
367,400 |
|
|
|
|
1,750 |
|
|
|
18 |
|
|
|
17 |
|
|
|
Other credit |
|
|
|
110,118 |
|
|
|
524 |
|
|
|
89,956 |
|
|
|
|
432 |
|
|
|
22 |
|
|
|
21 |
|
|
|
Total credit trading 1 |
|
|
|
3,017,632 |
|
|
|
14,351 |
|
|
|
2,580,358 |
|
|
|
|
12,389 |
|
|
|
17 |
|
|
|
16 |
|
|
|
Rates |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. government bonds 2 |
|
|
|
4,560,440 |
|
|
|
21,716 |
|
|
|
3,964,435 |
|
|
|
|
19,060 |
|
|
|
15 |
|
|
|
14 |
|
|
|
Agency and other government bonds 1 |
|
|
|
179,490 |
|
|
|
848 |
|
|
|
89,303 |
|
|
|
|
426 |
|
|
|
101 |
|
|
|
99 |
|
|
|
Total rates trading |
|
|
|
4,739,930 |
|
|
|
22,564 |
|
|
|
4,053,738 |
|
|
|
|
19,486 |
|
|
|
17 |
|
|
|
16 |
|
|
|
Total trading |
|
|
$ |
7,757,562 |
|
|
$ |
36,915 |
|
|
$ |
6,634,096 |
|
|
|
$ |
31,875 |
|
|
|
17 |
|
|
|
16 |
|
|
|
Number of U.S. Trading Days 3 |
|
|
|
|
|
|
210 |
|
|
|
|
|
|
|
208 |
|
|
|
|
|
|
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|
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Number of U.K. Trading Days 4 |
|
|
|
|
|
|
212 |
|
|
|
|
|
|
|
210 |
|
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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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