Latest news with #MarketAxessHoldingsInc
Business Wire
3 days ago
- Business
- Business Wire
MarketAxess Announces Trading Volume Statistics for May 2025
NEW YORK--(BUSINESS WIRE)--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 2025. 1 Select May 2025 Highlights* (See tables 1-1C and table 2) The MarketAxess platform's strong performance persisted in May through moderated levels of volatility, providing our clients with deep liquidity through Open Trading. We delivered strong progress with our new initiatives across the client-initiated, portfolio trading and dealer-initiated channels that contributed to the strong performance in May. Client-Initiated Strong increases in block trading ADV across U.S. credit (+41%), emerging markets (+24%) and eurobonds (+116%). We launched our targeted block trading solution in U.S. credit in mid-May. Block trading in emerging markets and eurobonds both benefitted from the launch of our targeted block solution in late 2024, which has generated cumulative trading volume of approximately $1.7 billion and $2.7 billion, respectively, since launch. Clients continued to leverage our algos in U.S. government bond trading, helping to drive a 57% increase in ADV to $28.3 billion with estimated market share of 2.6% in May. Portfolio Trading Year-to-date May 2025, estimated market share of U.S. credit portfolio trading is 18.6%, compared to 14.1% in the prior year same period, an increase of approximately 450 basis points. 2 90% of all portfolio trading ADV was executed over X-Pro in May. Dealer-Initiated Dealer-initiated ADV increased 41% to $1.8 billion. May 2025 Variable Transaction Fees Per Million 1 (See table 1D) The decline in total credit FPM compared to the prior year was driven principally by protocol mix. Total credit FPM was flat month-over-month. The decline in total rates FPM compared to the prior year was driven by the impact of product mix. Total rates FPM was down slightly month-over-month. *All comparisons versus May 2024 unless noted. Table 1A: Market ADV Month % Change May-25 Apr-25 May-24 YoY MoM MARKET ADV ($ millions) Credit U.S. High-Grade TRACE $ 39,652 $ 44,647 $ 32,864 21 % (11 ) % U.S. High-Yield TRACE 13,171 14,565 10,313 28 (10 ) Total U.S. Credit TRACE 52,823 59,212 43,177 22 (11 ) Municipal Bonds MSRB 10,306 15,427 7,123 45 (33 ) Rates U.S. Government Bonds TRACE $ 1,106,252 $ 1,354,981 $ 830,586 33 % (18 ) % Agency TRACE 4,032 4,064 2,982 35 (1 ) U.S. Trading Days 4 21 21 22 U.K. Trading Days 4 19 20 20 Expand Table 1B: Estimated Market Share 5 Month Bps Change May-25 Apr-25 May-24 YoY MoM MKTX ESTIMATED MARKET SHARE (%) U.S. High-Grade % of U.S. High-Grade TRACE (incl. SD PT) 5 19.9% 19.4% 19.2% +70 bps +50 bps % of U.S. High-Grade TRACE (excl. SD PT) 5 19.3% 19.3% 18.6% +70 bps – bps U.S. High-Yield % of U.S. High-Yield TRACE (incl. SD PT) 5 12.4% 14.1% 13.1% (70) bps (170) bps % of U.S. High-Yield TRACE (excl. SD PT) 5 12.2% 13.5% 12.8% (60) bps (130) bps Other Credit Products Rates % of U.S. Government Bonds TRACE 2.6% 2.8% 2.2% +40 bps (20) bps Expand Table 1C: Strategic Priorities ADV 2 Month % Change May-25 Apr-25 May-24 YoY MoM STRATEGIC PRIORITIES ADV ($ millions) Client-Initiated Channel U.S. Credit Block Trading $ 3,070 $ 3,751 $ 2,182 41 % (18 ) % Emerging Markets Block Trading 1,451 1,579 1,173 24 (8 ) Eurobonds Block Trading 637 497 294 116 28 Portfolio Trading Channel Total MKTX Portfolio Trading 2 $ 1,455 $ 1,790 $ 853 71 % (19 ) % Total MKTX U.S. Credit Portfolio Trading 2 1,014 1,441 734 38 (30 ) Total U.S. Credit TRACE Portfolio Trading 2 6,041 7,349 4,164 45 (18 ) Dealer-Initiated Channel Total Dealer Initiated (DRFQ & Mid-X) $ 1,781 $ 1,916 $ 1,260 41 % (7 ) % Other Open Trading $ 4,777 $ 5,739 $ 3,924 22 % (17 ) % AxessIQ 189 181 138 37 4 U.S. Trading Days 4 21 21 22 U.K. Trading Days 4 19 20 20 Expand Table 1D: Variable Transaction Fees Per Million (FPM) 1 Month % Change May-25 Apr-25 May-24 YoY MoM AVG. VARIABLE TRANS. FEE PER MILLION (FPM) Total Credit $ 138 $ 138 $ 148 (7 ) % 0 % Total Rates 3.75 3.76 4.40 (15 ) (0 ) Expand 1 The FPM for total credit and total rates for May 2025 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 Due to variances in how portfolio trading market participants utilized the portfolio trading TRACE 'flag,' the Company previously used its own internal methodology for calculating portfolio trading as an estimated percentage of TRACE volume and the Company's estimated market share. Starting in June 2024, the Company utilized the portfolio trading TRACE flag in its reported portfolio trading TRACE volume and the Company's portfolio trading estimated market share. 3 'Other Credit Products' includes municipal bonds, leveraged loans, convertible bonds and structured products. 4 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. 5 'SD PT' is defined as single-dealer portfolio trades. The Company is currently 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. Expand 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 Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions 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; 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; 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; issues related to the development and use of artificial intelligence; 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, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity 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 use of open-source software; 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 tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; 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 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. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. 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 and on X @MarketAxess. Credit High-grade $ 160,636 $ 7,649 $ 134,675 $ 6,122 19 % 25 % High-yield 33,636 1,602 29,044 1,320 16 21 Emerging markets 75,925 3,615 67,625 3,074 12 18 Eurobonds 54,538 2,870 45,471 2,274 20 26 Other credit 12,850 612 12,836 582 - 5 Total credit trading 1 337,585 16,348 289,651 13,372 17 22 Rates U.S. government bonds 2 594,163 28,293 397,586 18,072 49 57 Agency and other government bonds 1 30,329 1,589 14,744 728 106 118 Total rates trading 624,492 29,882 412,330 18,800 51 59 Total trading $ 962,077 $ 46,230 $ 701,981 $ 32,172 37 44 Number of U.S. Trading Days 3 21 22 Number of U.K. Trading Days 4 19 20 Year-to-Date Ended May 31, In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 802,448 $ 7,791 $ 735,624 $ 7,006 9 % 11 % High-yield 164,952 1,601 145,839 1,389 13 15 Emerging markets 405,938 3,941 363,206 3,459 12 14 Eurobonds 258,158 2,531 216,884 2,085 19 21 Other credit 64,848 630 49,097 467 32 35 Total credit trading 1 1,696,344 16,494 1,510,650 14,406 12 14 Rates U.S. government bonds 2 2,972,889 28,863 1,873,806 17,846 59 62 Agency and other government bonds 1 119,090 1,167 61,582 591 93 97 Total rates trading 3,091,979 30,030 1,935,388 18,437 60 63 Total trading $ 4,788,323 $ 46,524 $ 3,446,038 $ 32,843 39 42 Number of U.S. Trading Days 3 103 105 Number of U.K. Trading Days 4 102 104 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. Expand
Business Wire
12-05-2025
- Business
- Business Wire
MarketAxess Acquires Majority Control of RFQ-hub Holdings LLC
NEW YORK--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced the completion of its acquisition of a majority stake in the RFQ-hub platform, a bilateral multi-asset and multi-dealer request for quote (RFQ) platform with a focus on equity and fixed-income listed and OTC derivatives, structured products and exchange-traded funds (ETFs). Following the closing, MarketAxess holds approximately a 90% controlling stake in RFQ-hub. We see immense potential in combining RFQ-hub technology with our global client network. We have been working with the consortium and the RFQ-hub team for over two years and are already experiencing synergistic wins. Share Kat Sweeney, Global Head of Data and ETF Solutions at MarketAxess, commented, 'We see immense potential in combining RFQ-hub technology with our global client network. We have been working with the consortium and the RFQ-hub team for over two years and are already experiencing synergistic wins.' 'MarketAxess is focused on supporting and expanding the role of fixed-income ETFs and credit futures, as they become increasingly important tools for our clients to manage their exposure to the fixed-income market and unlock liquidity in the underlying bonds,' she continued. RFQ-hub is a global derivative and ETF platform that has been operating since 2008. In May 2022, Virtu Financial announced the formation of a consortium, RFQ-hub Holdings LLC, to support the growth of RFQ-hub. In addition to MarketAxess and Virtu, founding consortium members included liquidity providers Citadel Securities, Flow Traders and Jane Street Capital, and asset manager BlackRock. All founding members will retain a minority stake and continue to partner with MarketAxess under the new ownership model. Cautionary Note Regarding Forward-Looking Statements The press release may contain forward-looking statements, including statements within the meaning of the 'safe harbor' provisions of the United States Private Securities Litigation Reform Act of 1995 with respect to the transaction, including statements regarding the expected benefits of the transaction. These and other statements that relate to future results and events are based on MarketAxess' current expectations. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the ability of MarketAxess to successfully integrate Pragma's operations, product lines, and technology. In addition, please refer to the periodic filings MarketAxess makes with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause events and results to differ materially from those contained in the forward-looking statements set forth in this press release. 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 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. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. 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 and on X @MarketAxess.
Business Wire
07-05-2025
- Business
- Business Wire
MarketAxess Reports First Quarter 2025 Financial Results
- EPS of $0.40; $1.87 Excluding Notable Items 1 Record Total ADV Driven by Record Credit ADV with Record Open Trading ADV of $4.8 billion Record Total Portfolio Trading ADV and Record Levels of Block Trading in Emerging Markets and Eurobonds NEW YORK--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the first quarter ended March 31, 2025. 1Q25 select financial and operational highlights* Total revenues of $208.6 million, including a decrease of approximately $0.3 million from the impact of foreign currency fluctuations, decreased 1% compared to the prior year. 2% decline in total commission revenue driven by 3% decline in total credit commissions, partially offset by 34% increase in total rates commission revenue. Record emerging markets (+6%) and record eurobonds (+5%) commission revenue helped to partially offset 7% decline in U.S. credit commission revenue. Record services revenue (combined information, post-trade and technology services revenue) of $27 million, up 7%. Record ADV achieved across strategic priority related protocols and workflow tools, including: Emerging markets and eurobonds block trading ADV, up 22% and 68%, respectively. Total portfolio trading ADV of $1.3 billion, up 78%. Dealer RFQ ADV of $1.8 billion, up 40%. Open Trading ADV of $4.8 billion, up 8%. Total expenses of $120.2 million, up 2%, including a decrease of approximately $0.3 million from the impact of foreign currency fluctuations. Effective tax rate of 84.3%. 1 The effective tax rate excluding notable items 1 was 27.2%. Diluted earnings-per-share ('EPS') of $0.40 on net income of $15.1 million; EPS of $1.87 on net income of $70.0 million, each excluding notable items. 1 *All comparisons versus 1Q24 Chris Concannon, CEO of MarketAxess, commented: 'We generated record daily volumes across most of our product areas in the first quarter, including record portfolio trading ADV and record block trading ADV across both emerging markets and eurobonds. During 1Q25 and continuing in early 2Q25, we have been encouraged by the performance of our platform and protocols as our clients have navigated the ongoing credit market volatility. Open Trading activity reached record levels in 1Q25, and we continue to see higher levels of velocity. We believe that MarketAxess' platform is well-positioned in this environment. Looking ahead, we expect the new capabilities launched with our targeted block solution and enhancements to portfolio trading should help drive higher levels of market share in U.S. credit in the coming quarters.' Table 1: 1Q25 select financial results 1Q25 overview of results Table 1A: Notable items Quarter 1Q25 4Q24 1Q24 $ in millions, except per share data (unaudited) Reserve for uncertain tax positions related to prior periods 54.9 - - EPS impact 1.47 - - Expand Notable items 1 Reserve for uncertain tax positions of approximately $54.9 million taken related to prior periods. The Company established a reserve in 1Q25 following a NY state tax court's issuance of an opinion that impacted the Company's uncertain tax positions. The Company was not a party to the case, but its historical tax filing position was not supported by the Court's decision. Commission revenue Table 1B: 1Q25 variable transaction fees per million (FPM) Credit Total credit commission revenue of $169.1 million (including $33.3 million in fixed-distribution fees) decreased $5.7 million, or 3%, compared to $174.8 million (including $33.3 million in fixed-distribution fees) in the prior year, but increased 4% from 4Q24 levels. A 7% decline in U.S. credit commission revenue, principally due to lower total credit variable transaction fee per million ('FPM') and lower estimated market share, was partially offset by a 6% increase in emerging markets and Eurobonds commission revenue, as well as a 6% increase in municipal bonds commission revenue, reflecting continued strong product and geographic diversification. The decline in 1Q25 total credit FPM both year-over-year and quarter-over-quarter was due principally to product mix. Rates Total rates commission revenue of $7.0 million increased $1.8 million, or 34%, compared to the prior year. Total rates ADV of $27.0 billion increased 53% compared to the prior year, but decreased 1% compared to 4Q24. The decrease in 1Q25 total rates FPM compared to the prior year and the prior quarter was driven by the impact of product mix. Other Total other commission revenue of $5.2 million, which consists of Pragma-related commission revenue, increased 8% driven by higher equities commissions. Services revenue Record services revenue of $27.2 million increased $1.8 million, or 7%, compared to the prior year, driven principally by a 9% increase in information services revenue. Information services Information services revenue of $12.9 million increased $1.0 million, or 9%, compared to the prior year. The increase was principally driven by net new data contract revenue. Post-trade services Post-trade services revenue of $11.1 million increased $0.4 million, or 3%, compared to the prior year mainly due to net new contract revenue, partially offset by a decrease of $0.2 million from the impact of foreign currency fluctuations. Technology services Total technology services revenue of $3.2 million increased $0.4 million, or 14%, compared to the prior year. The increase was driven by higher Pragma-related license and connectivity fees. Expenses Total expenses of $120.2 million increased 2% from the prior year, including a decrease of $0.3 million from the impact of foreign currency fluctuations. Non-operating Other income (expense): Other income was $7.8 million, up from $4.2 million in the prior year. The increase was driven by higher interest income earned on our cash and investments, unrealized gains on our U.S. treasury investments compared to unrealized losses in the prior year, and lower foreign exchange losses compared to the prior period. Tax rate: The effective tax rate was 84.3%, up from 24.9% in the prior year. The effective tax rate excluding notable items 1 was 27.2%. Capital The Company had $642.1 million in cash, cash equivalents, corporate bond investments and U.S. Treasury investments as of March 31, 2025, down from $698.6 million as of December 31, 2024. There were no outstanding borrowings under the Company's credit facility. A total of 250,792 shares were repurchased year-to-date through April 2025 at a cost of $51.7 million, including 187,905 shares repurchased during the first quarter at a cost of $38.1 million. As of April 30, 2025, a total of $173.4 million remained under the Board of Directors' share repurchase authorization. The Board declared a quarterly cash dividend of $0.76 per share, payable on June 4, 2025 to stockholders of record as of the close of business on May 21, 2025. Other Employee headcount was 870 as of March 31, 2025, consistent with March 31, 2024, but down from 891 as of December 31, 2024. Guidance Due to the reserve noted above, the GAAP-basis effective tax rate for full year 2025 is now expected to be between 41.0% and 42.0%, assuming no material changes in applicable tax laws; the effective tax rate excluding notable items 1 is expected to be between 26.0% and 27.0%. Previously, the GAAP-basis effective tax rate stated guidance range was between 23.5% and 24.5%. 1 See Table 1A in this release for a listing of notable items. Results excluding notable items are non-GAAP financial measures. Refer to 'Non-GAAP financial measures and other items' for a discussion of these non-GAAP financial measures. 2 EBITDA and EBITDA margin are non-GAAP financial measures. Refer to 'Non-GAAP financial measures and other items' for a discussion of these non-GAAP financial measures. Expand Non-GAAP financial measures and other items To supplement the Company's unaudited financial statements presented in accordance with generally accepted accounting principles ('GAAP'), the Company uses certain non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization ('EBITDA'), EBITDA margin and free cash flow. From time to time, we present selected GAAP-basis financial results, excluding notable items. Notable items are revenues, expenses, other income (expense) and tax related items that are non-recurring and outside of the Company's normal course of business or other notables, such as acquisition and restructuring charges or gains/losses on sales (collectively, 'notable items'). We define EBITDA margin as EBITDA divided by revenues. We define free cash flow as net cash provided by/(used in) operating activities excluding the net change in trading investments and net change in securities failed-to-deliver and securities failed-to-receive from broker-dealers, clearing organizations and customers, less expenditures for furniture, equipment and leasehold improvements and capitalized software development costs. Non-GAAP financial measures should be considered in addition to, not as a substitute for or superior to, financial measures determined in conformity with GAAP. The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, provide additional information regarding the Company's operating results because they assist both investors and management in analyzing and evaluating the performance of our business. Please refer to Tables 6, 7 & 8 for a reconciliation of: (i) GAAP net income, EPS and the effective tax rate to net income, EPS and the effective tax rate, each excluding notable items; (ii) GAAP net income to EBITDA and GAAP net income margin to EBITDA margin; and (iii) GAAP net cash provided by/(used in) operating activities to free cash flow, in each case, the most directly comparable GAAP measure. Webcast and conference call information Chris Concannon, Chief Executive Officer and Ilene Fiszel Bieler, Chief Financial Officer will host a conference call to discuss the Company's financial results and outlook on Wednesday, May 7, 2025 at 10:00 a.m. ET. To access the conference call, please dial 646-307-1963 (U.S./International) and use the ID 1832176. The Company will also host a live audio Webcast of the conference call on the Investor Relations section of the Company's website at The Webcast will be archived on for 90 days following the announcement. 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 Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions 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; 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; 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; issues related to the development and use of artificial intelligence; 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, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity 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 use of open-source software; 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 tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; 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 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. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. 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 and on X @MarketAxess. Table 3: Commission Revenue Detail In thousands, except fee per million data Three Months Ended March 31, (unaudited) 2025 2024 % Change Variable transaction fees Credit $ 135,840 $ 141,504 (4 ) % Rates 6,919 5,166 34 Other 5,232 4,849 8 Total variable transaction fees 147,991 151,519 (2 ) Fixed distribution fees Credit 33,265 33,288 — Rates 87 66 32 Total fixed distribution fees 33,352 33,354 — Total commission revenue $ 181,343 $ 184,873 (2 ) Average variable transaction fee per million Credit $ 139 $ 154 (10 ) % Rates 4.20 4.79 (12 ) Table 4: Trading Volume Detail* Three Months Ended March 31, In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 461,308 $ 7,562 $ 455,998 $ 7,475 1 % 1 % High-yield 89,997 1,475 85,379 1,400 5 5 Emerging markets 240,285 3,939 221,427 3,630 9 9 Eurobonds 147,917 2,348 128,849 2,045 15 15 Other credit 36,482 598 26,335 432 39 38 Total credit trading 975,989 15,922 917,988 14,982 6 6 Rates U.S. government bonds 1,582,081 25,936 1,045,796 17,144 51 51 Agency and other government bonds 65,825 1,047 31,626 506 108 107 Total rates trading 1,647,906 26,983 1,077,422 17,650 53 53 Total trading $ 2,623,895 $ 42,905 $ 1,995,410 $ 32,632 31 31 Number of U.S. Trading Days 1 61 61 Number of U.K. Trading Days 2 63 63 1 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar. 2 The number of U.K. trading days is based on the U.K. Bank holiday schedule. *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. Consistent with industry standards, U.S. government bond trades are single-counted. Expand Expand Table 7: Reconciliation of Net Income to EBITDA and Net Income Margin to EBITDA Margin In thousands (unaudited) 1Q 2025 4Q 2024 1Q 2024 Net income $ 15,065 $ 65,139 $ 72,615 Add back: Interest income (7,169 ) (6,719 ) (5,973 ) Interest expense 213 318 316 Provision for income taxes 81,089 19,456 24,102 Depreciation and amortization 18,236 18,540 18,200 EBITDA $ 107,434 $ 96,734 $ 109,260 Net income margin 1 7.2 % 32.2 % 34.5 % Add back: Interest income (3.4 ) (3.3 ) (2.8 ) Interest expense 0.1 0.2 0.2 Provision for income taxes 38.9 9.5 11.4 Depreciation and amortization 8.7 9.2 8.6 EBITDA margin 2 51.5 % 47.8 % 51.9 % Table 8: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow In thousands (unaudited) 1Q 2025 4Q 2024 1Q 2024 Net cash (used in)/provided by operating activities $ 29,629 $ 176,248 $ (4,949 ) Exclude: Net change in trading investments — — (255 ) Exclude: Net change in fail-to-deliver/receive from broker-dealers, clearing organizations and customers 34,399 (51,833 ) 51,288 Less: Purchases of furniture, equipment and leasehold improvements (1,930 ) (215 ) (1,197 ) Less: Capitalization of software development costs (15,031 ) (10,833 ) (13,963 ) Free cash flow $ 47,067 $ 113,367 $ 30,924 1 Net income margin is derived by dividing net income by total revenues for the applicable period. 2 EBITDA margin is derived by dividing EBITDA by total revenues for the applicable period. Expand Contacts INVESTOR RELATIONS Stephen Davidson MarketAxess Holdings Inc. +1 212 813 6313 sdavidson2@ MEDIA RELATIONS Marisha Mistry MarketAxess Holdings Inc. +1 917 267 1232 mmistry@ Industry: Fintech Professional Services Finance Get RSS Feed MarketAxess Announces Trading Volume Statistics for April 2025 NEW YORK--(BUSINESS WIRE)--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 April 2025.1 Trading Records for April 2025 Total average daily volume ('ADV') of $57.4 billion Total credit ADV of $18.4 billion Total rates ADV of $39.1 billion U.S. credit block trading ADV of $3.8 billion Emerging markets ADV of $4.3 billion ... MarketAxess to Host Conference Call Announcing First Quarter 2025 Financial Results on Wednesday, May 7, 2025 NEW YORK--(BUSINESS WIRE)--MarketAxess Holdings Inc. (Nasdaq: MKTX) the operator of a leading electronic trading platform for fixed-income securities, will issue a press release announcing its first quarter 2025 financial results on Wednesday, May 7, 2025, before the market opens. Chris Concannon, Chief Executive Officer, Richard Schiffman, Global Head of Trading Solutions, and Ilene Fiszel Bieler, Chief Financial Officer, will host a conference call to provide a strategic update and discuss th...
Business Wire
06-05-2025
- Business
- Business Wire
MarketAxess Announces Trading Volume Statistics for April 2025
NEW YORK--(BUSINESS WIRE)--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 April 2025. 1 Trading Records for April 2025 Select April 2025 Highlights* (See tables 1-1C and table 2) The MarketAxess platform performed very well during increased volatility in April, providing our clients with deep liquidity through Open Trading. Market ADV increased significantly year-over-year across most product areas with record levels in U.S. high-yield, municipals and U.S. government bonds driven by an increase in volatility. Record Open Trading ADV of $5.7 billion with estimated share of total credit 2 of 38%, up from 34% in the prior year, and up from 37% in March 2025, reflecting the increasing importance of our differentiated liquidity to clients in more volatile periods. We delivered strong progress with our new initiatives across the client-initiated, portfolio trading and dealer-initiated channels that also contributed to the strong performance in April. 90% of all portfolio trading ADV was executed over X-Pro in April. April was the second highest monthly ADV in U.S. high-grade behind March 2025. U.S. high-yield ADV of $2.0 billion represented the highest monthly ADV level since February 2023, driven in part by a strong increase in ETF market maker activity. ETF market maker trading volume was the highest level since November 2023. Continued strength in emerging markets ADV, which was a record $4.3 billion, was driven by a 30% increase in hard currency ADV to a record $2.6 billion, and a 23% increase in local markets ADV. As volatility picked up, investors relied on multiple MarketAxess protocols to navigate market uncertainty, including Open Trading, portfolio trading and request-for-market, or RFM. Block trading in emerging markets benefitted from the launch of our targeted block solution in late 2024, which has generated cumulative trading volume of over $1.4 billion since launch. Record eurobonds ADV benefited from record eurobond portfolio trading, which was driven by our increased sales efforts. Block trading in eurobonds benefitted from the launch of our targeted block solution in January 2025, which has generated cumulative trading volume of over $2.6 billion since launch. Record municipal bond ADV was driven by increased market volatility and strong increases in taxable and record tax-exempt trading volumes. The lower estimated market share in municipals was in part driven by a shift to larger sized notional trades in the market. Our rates business reported an all-time single-day record of $102.3 billion U.S. government bonds notional traded on April 9 and delivered record ADV of $39.1 billion with estimated market share of 2.8% in April. April 2025 Variable Transaction Fees Per Million 1 (See table 1D) The decline in total credit FPM compared to the prior year was driven principally by protocol mix. The increase month-over-month was principally driven by product mix. The decrease in total rates FPM compared to the prior year and the prior quarter was driven by the impact of product mix. *All comparisons versus April 2024 unless noted. Table 1A: Market ADV Month % Change Apr-25 Mar-25 Apr-24 YoY MoM MARKET ADV ($ millions) Credit U.S. High-Grade TRACE $ 44,647 $ 45,024 $ 36,735 22 % (1 )% U.S. High-Yield TRACE 14,565 13,605 10,253 42 7 Total U.S. Credit TRACE 59,212 58,629 46,988 26 1 Municipal Bonds MSRB 15,427 9,895 6,961 122 56 Rates U.S. Government Bonds TRACE $ 1,354,981 $ 1,097,090 $ 867,900 56 % 24 % Agency TRACE 4,064 3,957 4,097 (1 ) 3 U.S. Trading Days 4 21 21 22 U.K. Trading Days 4 20 21 21 Expand Table 1B: Estimated Market Share 5 Month % Change Apr-25 Mar-25 Apr-24 YoY MoM MKTX ESTIMATED MARKET SHARE (%) U.S. High-Grade % of U.S. High-Grade TRACE (incl. SD PT) 5 19.4 % 20.0 % 18.2 % 1.2 % (0.6 )% % of U.S. High-Grade TRACE (excl. SD PT) 5 19.3 % 19.2 % 17.9 % 1.4 0.1 U.S. High-Yield % of U.S. High-Yield TRACE (incl. SD PT) 5 14.1 % 12.8 % 14.2 % (0.1 )% 1.3 % % of U.S. High-Yield TRACE (excl. SD PT) 5 13.5 % 12.5 % 13.9 % (0.4 ) 1.0 Other Credit Products % of Municipal Bonds MSRB 4.8 % 6.4 % 6.4 % (1.6 )% (1.6 )% Rates % of U.S. Government Bonds TRACE 2.8 % 2.5 % 2.3 % 0.5 % 0.3 % Expand Table 1C: Strategic Priorities ADV 6 Month % Change Apr-25 Mar-25 Apr-24 YoY MoM STRATEGIC PRIORITIES ADV ($ millions) Client-Initiated Channel U.S. Credit Block Trading $ 3,751 $ 3,450 $ 2,489 51 % 9 % Emerging Markets Block Trading 1,579 1,717 1,232 28 (8 ) Eurobonds Block Trading 497 510 265 88 (3 ) Portfolio Trading Channel Total MKTX Portfolio Trading 6 $ 1,790 $ 1,525 $ 901 99 % 17 % Total MKTX U.S. Credit Portfolio Trading 6 1,441 1,328 748 93 9 Total U.S. Credit TRACE Portfolio Trading 6 7,349 6,608 5,744 28 11 Dealer-Initiated Channel Total Dealer Initiated (DRFQ & Mid-X) $ 1,916 $ 2,140 $ 1,232 56 % (10 )% Other Open Trading $ 5,739 $ 5,485 $ 3,973 44 % 5 % AxessIQ 181 175 123 47 3 U.S. Trading Days 4 21 21 22 U.K. Trading Days 4 20 21 21 Expand Table 1D: Variable Transaction Fees Per Million (FPM) 1 Month % Change Apr-25 Mar-25 Apr-24 YoY MoM AVG. VARIABLE TRANS. FEE PER MILLION (FPM) Total Credit $ 139 $ 136 $ 150 (7 )% 2 % Total Rates 4.23 4.61 4.40 (4 ) (8 ) Expand 1 The FPM for total credit and total rates for April 2025 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 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. 3 'Other Credit Products' includes municipal bonds, leveraged loans, convertible bonds and structured products. 4 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. 5 'SD PT' is defined as single-dealer portfolio trades. The Company is currently 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. 6 Due to variances in how portfolio trading market participants utilized the portfolio trading TRACE 'flag,' the Company previously used its own internal methodology for calculating portfolio trading as an estimated percentage of TRACE volume and the Company's estimated market share. Starting in June 2024, the Company utilized the portfolio trading TRACE flag in its reported portfolio trading TRACE volume and the Company's portfolio trading estimated market share. Expand 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 Cautionary Note Regarding Forward-Looking Statements This press release may contain forward-looking statements, including statements about the outlook and prospects for the Company, market conditions 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; 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; 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; issues related to the development and use of artificial intelligence; 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, products or services; our vulnerability to malicious cyber-attacks and attempted cybersecurity 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 use of open-source software; 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 tax filing positions; the effects of climate change or other sustainability risks that could affect our operations or reputation; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; our exposure to financial institutions by holding cash in excess of federally insured limits; 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 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. Approximately 2,100 firms leverage MarketAxess' patented technology to efficiently trade fixed-income securities. Our automated and algorithmic trading solutions, combined with our integrated and actionable data offerings, help our clients make faster, better-informed decisions on when and how to trade on our platform. 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 and on X @MarketAxess. Table 2: Trading Volume Detail Credit High-grade $ 180,504 $ 8,595 $ 144,951 $ 6,589 25 % 30 % High-yield 41,319 1,968 31,416 1,428 32 38 Emerging markets 89,728 4,273 74,154 3,371 21 27 Eurobonds 55,703 2,785 42,564 2,027 31 37 Other credit 15,516 739 9,932 451 56 64 Total credit trading 1 382,770 18,360 303,017 13,866 26 32 Rates U.S. government bonds 2 796,645 37,935 430,424 19,565 85 94 Agency and other government bonds 1 22,936 1,141 15,212 718 51 59 Total rates trading 819,581 39,076 445,636 20,283 84 93 Total trading $ 1,202,351 $ 57,436 $ 748,653 $ 34,149 61 68 Number of U.S. Trading Days 3 21 22 Number of U.K. Trading Days 4 20 21 Year-to-Date Ended April 30, In millions (unaudited) 2025 2024 % Change Volume ADV Volume ADV Volume ADV Credit High-grade $ 641,812 $ 7,827 $ 600,949 $ 7,240 7 % 8 % High-yield 131,316 1,601 116,795 1,407 12 14 Emerging markets 330,013 4,025 295,581 3,561 12 13 Eurobonds 203,620 2,453 171,413 2,041 19 20 Other credit 51,998 634 36,267 436 43 45 Total credit trading 1 1,358,759 16,540 1,221,005 14,685 11 13 Rates U.S. government bonds 2 2,378,726 29,009 1,476,220 17,786 61 63 Agency and other government bonds 1 88,761 1,070 46,838 559 90 91 Total rates trading 2,467,487 30,079 1,523,058 18,345 62 64 Total trading $ 3,826,246 $ 46,619 $ 2,744,063 $ 33,030 39 41 Number of U.S. Trading Days 3 82 83 Number of U.K. Trading Days 4 83 84 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. Expand
Yahoo
22-04-2025
- Business
- Yahoo
Here's Why Upslope Capital Management Added MarketAxess (MKTX) to its Portfolio
Upslope Capital Management, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. The First quarter was challenging for the fund. However, the world has transformed in the two weeks since March 31, due to a drastic realignment of international trade rules. As a result, markets are now more in line with Upslope's strategy and portfolio. The fund returned -5.1% (net) in Q1 compared to -6.1% and +0.2% for the S&P Midcap 400 ETF (MDY) and HFRX Equity Hedge Index, respectively. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025. In its first-quarter 2025 investor letter, Upslope Capital Management highlighted stocks such as MarketAxess Holdings Inc. (NASDAQ:MKTX). MarketAxess Holdings Inc. (NASDAQ:MKTX) is an electronic trading platform for institutional investors and broker-dealer companies. The one-month return of MarketAxess Holdings Inc. (NASDAQ:MKTX) was 4.10%, and its shares gained 8.50% of their value over the last 52 weeks. On April 21, 2025, MarketAxess Holdings Inc. (NASDAQ:MKTX) stock closed at $222.17 per share with a market capitalization of $8.487 billion. Upslope Capital Management stated the following regarding MarketAxess Holdings Inc. (NASDAQ:MKTX) in its Q1 2025 investor letter: "MarketAxess Holdings Inc. (NASDAQ:MKTX): Challenged member of fixed income/credit 'exchange' duopoly. Given macro/geopolitical backdrop and depressed valuation, company appears likely to stabilize market share (or better) in the near-term and/or be acquired by a large exchange in the medium-term. A trader in a busy trading room, surrounded by real-time market data and automated execution services. MarketAxess Holdings Inc. (NASDAQ:MKTX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 45 hedge fund portfolios held MarketAxess Holdings Inc. (NASDAQ:MKTX) at the end of the fourth quarter which was 42 in the previous quarter. While we acknowledge the potential of MarketAxess Holdings Inc. (NASDAQ:MKTX) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered MarketAxess Holdings Inc. (NASDAQ:MKTX) and shared the list of best debt free mid cap stocks to buy. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
