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MarketAxess Announces Monthly Volume Statistics for March and First Quarter 2023

Record Total Credit Volume of $296.3 Billion in March; Record Total Credit ADV of $13.7 Billion in 1Q

Record Open Trading® Penetration of 39%1 in March; Record Open Trading ADV in 1Q

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of automated trading solutions, intelligent data and index products and post-trade services for the global fixed-income markets, today announced monthly trading volume and preliminary variable transaction fees per million (“FPM”) for the month and the first quarter ended March 31, 2023.2

Select March 2023 highlights*

  • Record $296.3 billion in total credit trading volume; $12.9 billion in total credit average daily volume (“ADV”), up 4%.
  • Record U.S. high-grade Open Trading® penetration1 of 37% (+670 bps) on a 5% increase in U.S. high-grade ADV to $6.1 billion. Estimated market share of 19.9%.
  • 14% increase in U.S. high-yield ADV to $1.8 billion with estimated market share of 18.9% (+380 bps), up from 15.1%.
  • Emerging markets ADV of $2.7 billion down 16%.

— MarketAxess estimated emerging markets TraX and FINRA TRACE-reportable emerging market ADV down a combined 32%.3

  • 25% increase in Eurobonds ADV to $1.8 billion with 16.2% (+310 bps) estimated market share, up from 13.1%.4
  • 36% increase in municipal bond ADV to $401 million, with estimated market share of 6.4% (+250 bps).
  • Record total credit Open Trading penetration1 of 39% (+500 bps), up from 34%.

— Estimated price improvement5 via Open Trading was approximately $100 million, and average estimated price improvement per million was $976.

  • Record $14 billion in portfolio trading volume, up 200% from $5 billion.
  • The preliminary FPM2 for total credit for March 2023 was approximately $166, in line with February 2023 levels. The duration of bonds traded in U.S. high-grade was stable in March 2023 relative to February and January 2023. The preliminary FPM for total rates was $3.86, compared to $3.94 in March 2022.

*All comparisons versus March 2022 unless otherwise noted.

Select 1Q23 highlights**

  • Record $13.7 billion in total credit ADV, up 14%, with total trade count up 26%.
  • Record U.S. high-grade Open Trading penetration1 of 34% (+350 bps) on a 15% increase in U.S. high-grade ADV to $6.3 billion with estimated market share of 19.9%. Estimated U.S. high-grade TRACE market ADV increased 20% to a record $31.9 billion.
  • 22% increase in U.S. high-yield ADV to a record $2.0 billion with estimated market share of 18.3% (+310 bps), up from 15.2%.
  • Record emerging markets ADV of $3.1 billion, up 1%; MarketAxess estimated emerging markets TraX and FINRA TRACE-reportable emerging market ADV down a combined 21%.3
  • 24% increase in Eurobonds ADV to a record $1.8 billion with 16.0% (+380 bps) estimated market share, up from 12.2%.4 Eurobonds ADV up approximately 31% excluding the impact of foreign currency fluctuations.
  • 55% increase in municipal bond ADV to $447 million, with estimated market share of 6.4% (+210 bps).
  • Record Open Trading ADV of $4.0 billion, up 19%, with total trade count up 28%.
  • Total credit Open Trading penetration1 of 37% (+210 bps), up from 35%. Estimated price improvement5 via Open Trading was approximately $252 million, and average estimated price improvement per million was $902.
  • Record $31 billion in portfolio trading volume, up 125% from $14 billion in 1Q22. Estimated U.S. high-grade and U.S. high-yield portfolio trading market volume increased 13% and represented approximately 5% of the market in 1Q23, in line with 1Q22 levels.
  • The preliminary FPM2 for total credit for the quarter was $164.3, compared to $163.87 in 4Q22 and $172.54 in 1Q22. The preliminary FPM for total rates for the quarter was $4.0, compared to $4.14 in 4Q22 and $3.92 in 1Q22.

**All comparisons versus 1Q22 unless otherwise noted.

Chris Concannon, CEO of MarketAxess, commented:

“In March we generated record total credit trading volume of $296 billion, with strong increases in average daily trading volume across high-yield, Eurobonds and municipals, driven in part by continued strong levels of estimated market share gains across most product areas. Market volumes were dampened by challenges in the banking sector, with U.S. corporate credit average daily volume dropping 10% intra-month during the crisis period. The scarcity of liquidity during the month drove record Open Trading penetration of 39%, reflecting the power of our differentiated liquidity pool.

Open Trading estimated price improvement4 was approximately $100 million in March and average estimated price improvement per million was approximately $976. Year-to-date, price improvement of $252 million is running 26% above prior year levels.

Our results in March contributed to strong results for the first quarter with record total credit average daily trading volume of $13.7 billion. The macro backdrop remains favorable despite the market dislocation in March, with a record $32 billion in estimated U.S. high-grade TRACE market average daily volume in the first quarter. Our estimated market share gains across most products are strong and total credit average fee per million has been stable. The focus now is building on the strong momentum we have established in the first quarter.”

Table 1: March 2023 trading ADV

CREDIT RATES
$ in millions

(unaudited)
US/UK Trading Days6 Total

ADV
Total

Credit
High-Grade High-Yield Emerging

Markets
Eurobonds Municipal Bonds Total

Rates
US Govt.

Bonds
Agcy./Other

Govt. Bonds
Mar-23

23/23

$39,882

$12,882

$6,128

$1,823

$2,685

$1,824

$401

$27,000

$26,602

$398

Mar-22

23/23

$38,895

$12,394

$5,832

$1,603

$3,178

$1,463

$294

$26,501

$26,077

$424

% Change

3%

4%

5%

14%

(16%)

25%

36%

2%

2%

(6%)

Table 1A: March 2023 estimated market share

CREDIT RATES


(unaudited)
High-Grade High-Yield High-Grade/High-Yield Combined Eurobonds Composite Corporate Bond7 Municipals US Govt.

Bonds
Mar-23

19.9%

18.9%

19.7%

16.2%

19.3%

6.4%

3.7%

Mar-22

20.5%

15.1%

19.0%

13.1%

18.3%

3.9%

3.7%

Bps Change (60) bps +380 bps +70 bps +310 bps +100 bps +250 bps 0 bps

Table 1B: 1Q23 trading ADV

CREDIT RATES
$ in millions

(unaudited)
US/UK Trading Days6 Total

ADV
Total

Credit
High-Grade High-Yield Emerging

Markets
Eurobonds Municipal Bonds Total

Rates
US Govt.

Bonds
Agcy./Other

Govt. Bonds

1Q23

62/64

$38,202

$13,721

$6,334

$1,982

$3,094

$1,849

$447

$24,481

$24,053

$428

1Q22

62/63

$37,504

$12,005

$5,518

$1,626

$3,060

$1,493

$288

$25,499

$25,076

$423

% Change

2%

14%

15%

22%

1%

24%

55%

(4%)

(4%)

1%

Table 1C: 1Q23 estimated market share

CREDIT RATES


(unaudited)
High-Grade High-Yield High-Grade/High-Yield Combined Eurobonds Composite Corporate Bond7 Municipals US Govt.

Bonds

1Q23

19.9%

18.3%

19.5%

16.0%

19.1%

6.4%

3.5%

1Q22

20.7%

15.2%

19.1%

12.2%

18.1%

4.3%

3.6%

Bps Change

(80) bps +310 bps +40 bps +380 bps +100 bps +210 bps (10) bps

Table 1D: Rolling 6-month trading ADV (period ending March 31, 2023 and March 31, 2022)

CREDIT RATES
$ in millions

(unaudited)
US/UK Trading Days6 Total

ADV
Total

Credit
High-Grade High-Yield Emerging

Markets
Eurobonds Municipal Bonds Total

Rates
US Govt.

Bonds
Agcy./Other

Govt. Bonds
Mar-23

123/127

$34,345

$12,888

$5,914

$1,894

$2,882

$1,710

$473

$21,457

$21,064

$393

Mar-22

124/127

$33,330

$10,857

$5,000

$1,491

$2,825

$1,330

$197

$22,473

$22,082

$391

% Change

 

3%

19%

18%

27%

2%

29%

140%

(5%)

(5%)

1%

Table 1E: Rolling 6-month estimated market share (period ending March 31, 2023 and March 31, 2022)

CREDIT RATES


(unaudited)
High-Grade High-Yield High-Grade/High-Yield Combined Eurobonds Composite Corporate Bond7 Municipals US Govt.

Bonds
Mar-23

20.4%

19.3%

20.1%

16.9%

19.9%

5.6%

3.4%

Mar-22

20.9%

15.3%

19.3%

12.6%

18.4%

3.6%

3.3%

Bps Change (50) bps +400 bps +80 bps +430 bps +150 bps +200 bps +10 bps

1 Open Trading penetration at the product level is derived by taking total Open Trading volume in the product divided by the total product trading volume. Open Trading for total credit 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.

2 The FPM for total credit and total rates for the month and the first quarter ended March 31, 2023 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.

3 Emerging markets estimated market ADV is derived by combining MarketAxess TraX emerging markets trading volume (currently estimated to represent approximately 55% of the total emerging markets market) and FINRA TRACE-reportable emerging markets trading volume, principally U.S. dollar denominated corporates.

4 Eurobonds estimated market share is derived from MarketAxess TraX data for Eurobonds and covered bonds market trading volume, which is currently estimated to represent approximately 70% of the total European market.

5 Estimated price improvement consists of estimated liquidity taker price improvement (defined as the difference between the winning price and the best disclosed dealer cover price) and estimated liquidity provider price improvement (defined as the difference between the winning price and then current Composite+ bid or offer level, offer if the provider is buying, bid if provider is selling) at the time of the inquiry.

6 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.

7 Composite corporate bond estimated market share is defined as combined estimated market share across U.S. high-grade (derived from FINRA TRACE reported data), U.S. high-yield (derived from FINRA TRACE reported data), emerging markets (derived from FINRA TRACE-reportable emerging markets volume, principally U.S. dollar denominated corporates) and Eurobonds (derived from MarketAxess TRAX data which is currently estimated to represent approximately 70% of the total European market) product areas.

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes, TRACE reported volumes and MarketAxess Post-Trade processed 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 Company 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; risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic; adverse effects as a result of climate change or other ESG risks that could affect our reputation; 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; reputational or credibility risks related to our data products and index business; 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; our vulnerability to malicious cyber-attacks and attempted data security 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; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; 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. 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 Twitter@MarketAxess.

Table 2: Trading Volume Detail

 

 

 

 

 

Month Ended March 31,

 

 

In millions (unaudited)

 

 

2023

 

 

2022

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

140,951

 

 

$

6,128

 

 

$

134,126

 

 

 

$

5,832

 

 

 

5.1

 

%

 

5.1

 

%

High-yield

 

 

 

41,930

 

 

 

1,823

 

 

 

36,876

 

 

 

 

1,603

 

 

 

13.7

 

 

 

13.7

 

 

Emerging markets

 

 

 

61,746

 

 

 

2,685

 

 

 

73,097

 

 

 

 

3,178

 

 

 

(15.5

)

 

 

(15.5

)

 

Eurobonds

 

 

 

41,960

 

 

 

1,824

 

 

 

33,656

 

 

 

 

1,463

 

 

 

24.7

 

 

 

24.7

 

 

Other credit

 

 

 

9,710

 

 

 

422

 

 

 

7,325

 

 

 

 

318

 

 

 

32.6

 

 

 

32.7

 

 

Total credit trading1

 

 

 

296,297

 

 

 

12,882

 

 

 

285,080

 

 

 

 

12,394

 

 

 

3.9

 

 

 

3.9

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

611,850

 

 

 

26,602

 

 

 

599,781

 

 

 

 

26,077

 

 

 

2.0

 

 

 

2.0

 

 

Agency and other government bonds1

 

 

 

9,147

 

 

 

398

 

 

 

9,760

 

 

 

 

424

 

 

 

(6.3

)

 

 

(6.1

)

 

Total rates trading

 

 

 

620,997

 

 

 

27,000

 

 

 

609,541

 

 

 

 

26,501

 

 

 

1.9

 

 

 

1.9

 

 

Total trading

 

 

$

917,294

 

 

$

39,882

 

 

$

894,621

 

 

 

$

38,895

 

 

 

2.5

 

 

 

2.5

 

 

Number of U.S. Trading Days3

 

 

 

 

 

 

23

 

 

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

23

 

 

 

 

 

 

 

23

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter and Year-to-Date Ended March 31,

 

 

In millions (unaudited)

 

 

2023

 

 

2022

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

392,715

 

 

$

6,334

 

 

$

342,093

 

 

 

$

5,518

 

 

 

14.8

 

%

 

14.8

 

%

High-yield

 

 

 

122,873

 

 

 

1,982

 

 

 

100,826

 

 

 

 

1,626

 

 

 

21.9

 

 

 

21.9

 

 

Emerging markets

 

 

 

191,841

 

 

 

3,094

 

 

 

189,740

 

 

 

 

3,060

 

 

 

1.1

 

 

 

1.1

 

 

Eurobonds

 

 

 

118,366

 

 

 

1,849

 

 

 

94,077

 

 

 

 

1,493

 

 

 

25.8

 

 

 

23.8

 

 

Other credit

 

 

 

28,683

 

 

 

462

 

 

 

19,075

 

 

 

 

308

 

 

 

50.4

 

 

 

50.0

 

 

Total credit trading1

 

 

 

854,478

 

 

 

13,721

 

 

 

745,811

 

 

 

 

12,005

 

 

 

14.6

 

 

 

14.3

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

1,491,292

 

 

 

24,053

 

 

$

1,554,716

 

 

 

 

25,076

 

 

 

(4.1

)

 

 

(4.1

)

 

Agency and other government bonds1

 

 

 

27,061

 

 

 

428

 

 

 

26,518

 

 

 

 

423

 

 

 

2.0

 

 

 

1.2

 

 

Total rates trading

 

 

 

1,518,353

 

 

 

24,481

 

 

 

1,581,234

 

 

 

 

25,499

 

 

 

(4.0

)

 

 

(4.0

)

 

Total trading

 

 

$

2,372,831

 

 

$

38,202

 

 

$

2,327,045

 

 

 

$

37,504

 

 

 

2.0

 

 

 

1.9

 

 

Number of U.S. Trading Days3

 

 

 

 

 

 

62

 

 

 

 

 

 

 

62

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

64

 

 

 

 

 

 

 

63

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

 

 

 

Chris Concannon, CEO of MarketAxess commented: "In March we generated record total credit trading volume of $296 billion, with strong increases in average daily trading volume across high-yield, Eurobonds and municipals."

Contacts

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

William McBride

RF | Binder

+1 917 239 6726

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