MarketAxess Announces Monthly Volume Statistics for June 2022

MarketAxess Holdings, Inc.

NEW YORK, July 06, 2022 (GLOBE NEWSWIRE) -- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced trading volume for June 2022 and trading volume and preliminary variable transaction fees per million (“FPM”) for the quarter ended June 30, 2022.¹

Chris Concannon, President and COO of MarketAxess commented:

“We delivered another strong month of double-digit growth in credit and rates, with estimated market share gains across all products and record ADV and share in U.S. high-yield and Eurobonds. The strong finish in June drove record quarterly estimated market share across credit and rates products.

Since the beginning of 2022, the median bid/ask spread reflected in Composite+™ for high-grade bonds has doubled, reflecting an improved operating environment in which the cost savings benefits of Open Trading®, our differentiated liquidity pool, are increasing.

We believe strong growth in trading volume, broad-based share gains, increasing momentum in new product areas and higher cost savings for investor clients are setting the foundation for a return to stronger growth in the months and quarters ahead.”

Select June 2022 highlights*

• U.S. high-grade average daily volume (“ADV”) of $5.8 billion, up 9%; estimated market share of 22.7%, up from 21.9%.

• Record U.S. high-yield ADV of $2.0 billion, up 44%; record estimated market share of 19.0%, up from 13.7%.

• Emerging markets ADV of $2.9 billion, up 6%; estimated market ADV down 6%. Excluding the impact of currency fluctuations, emerging markets ADV in June 2022 was up approximately 9%.

• Record Eurobond ADV of $1.6 billion, up 17%; record estimated market share of 17.2%, up from 11.1%. Excluding the impact of currency fluctuations, Eurobonds ADV in June 2022 was up approximately 33%.

• Record composite corporate bond² estimated market share of 21.2%, up from 17.9%.

• Municipal bond ADV of $379 million with strong market share gains.

• Total credit ADV of $12.7 billion up 16%; 92% of credit volume on the platform was executed by institutional clients.

• 36% of total credit trading volume was executed via Open Trading®.

  • Estimated total cost savings from Open Trading³ were approximately $94 million in June and average cost savings per million from Open Trading in June was $1,121.

• $20.2 billion in U.S. Treasury ADV, up 39% with market volumes down 9%.

*All comparisons versus June 2021 unless otherwise noted.

Table 1: June 2022 trading volume (ADV)

		CREDIT							RATES
$ in millions (unaudited)	Total Volumes	High-Grade	High-Yield	Emerging Markets	Eurobonds	Other Credit Prod.	Total Other Credit	Total Credit	US Govt. Bonds	Agcy./Other Govt. Bonds	Total Rates
Jun-22	$33,360	$5,809	$1,971	$2,854	$1,622	$419	$6,866	$12,675	$20,245	$440	$20,685
Jun-21	$25,773	$5,337	$1,365	$2,690	$1,385	$110	$5,550	$10,887	$14,538	$348	$14,886
Jun-22 vs. Jun-21 % Change	29%	9%	44%	6%	17%	281%	24%	16%	39%	26%	39%

Table 2: June 2022 estimated market share

	CREDIT						RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High- Yield Combined	Eurobonds	Composite Corporate Bond2	Municipals	US Govt. Bonds
Jun-22	22.7%	19.0%	21.6%	17.2%	21.2%	4.4%	3.4%
May-22	21.7%	15.9%	20.0%	14.2%	19.4%	3.7%	3.6%
Jun-21	21.9%	13.7%	19.5%	11.1%	17.9%	2.4%	2.2%
Jun-22 vs. Jun-21 BPS Change	+80 bps	+530 bps	+210 bps	+610 bps	+330 bps	+200 bps	+120 bps
Jun-22 vs. May-22 BPS Change	+100 bps	+310 bps	+160 bps	+300 bps	+180 bps	+70 bps	(20) bps

Table 3: 2Q22 trading volume (ADV)

		CREDIT							RATES
$ in millions (unaudited)	Total Volumes	High-Grade	High-Yield	Emerging Markets	Eurobonds	Other Credit Prod.	Total Other Credit	Total Credit	US Govt. Bonds	Agcy./Other Govt. Bonds	Total Rates
2Q22	$35,389	$5,803	$1,771	$2,828	$1,491	$397	$6,487	$12,290	$22,657	$442	$23,099
2Q21	$24,777	$5,143	$1,457	$2,496	$1,463	$105	$5,521	$10,664	$13,850	$263	$14,113
2Q22 vs. 2Q21 % Change	43%	13%	22%	13%	2%	278%	17%	15%	64%	68%	64%

Table 4: 2Q22 estimated market share

	CREDIT						RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High- Yield Combined	Eurobonds	Composite Corporate Bond2	Municipals	US Govt. Bonds
2Q22	22.3%	17.3%	20.9%	15.1%	20.2%	3.9%	3.7%
1Q22	20.7%	15.2%	19.1%	12.2%	18.1%	4.3%	3.6%
2Q21	21.1%	14.3%	19.1%	11.7%	17.8%	2.2%	2.3%
2Q22 vs. 2Q21 BPS Change	+120 bps	+300 bps	+180 bps	+340 bps	+240 bps	+170 bps	+140 bps
2Q22 vs. 1Q22 BPS Change	+160 bps	+210 bps	+180 bps	+290 bps	+210 bps	(40) bps	+10 bps

Select 2Q22 highlights**

• Record active total client firms of 1,935 and record active international client firms of 982 reflecting the expanding global liquidity network on our marketplace.

• U.S. high-grade estimated share of 22.3%, up from 21.1%.

• Record U.S. high-yield estimated market share of 17.3%, up from 14.3%.

• Record combined U.S. high-grade/high-yield estimated market share of 20.9%, up from 19.1%.

• Emerging markets ADV of $2.8 billion, up 13%; estimated market ADV down 10%.

  • Record local markets trading volume of $68 billion.

• Record Eurobonds estimated market share of 15.1%, up from 11.7%.

• Record composite corporate bond² estimated market share of 20.2%, up from 17.8%.

• Record municipal bond trading volume and ADV of $23.0 billion and $371 million, respectively.

  • Total credit ADV of $12.3 billion, up 15%; 92% of credit volume on the platform was executed by institutional clients.

• Record 1.6 million total credit trades executed, up from 1.3 million trades executed.

  • 35% of total credit trading volume was executed via Open Trading®.

• Estimated total cost savings via Open Trading³ were approximately $238 million, and $439 million year-to-date. Average cost savings per million via Open Trading was $1,030 in the quarter.

• U.S. Treasury estimated market share of 3.7%, up from 2.3%.

• Record quarterly porfolio trading volume of $22.8 billion, up from $13.9 billion in 1Q22.

• The prelimininary FPM for the quarter is $143 for U.S. high-grade, $185 for other credit, $165 for total credit and $4.20 for total rates.

• Significantly expanded MarketAxess’ ETF/index strategic capabilities in the quarter with the launch of the MKTX Investment Grade 400 Corporate Bond Index and subsequent launch of an ETF on the index by State Street Global Advisors (Ticker: LQIG), as well as the announced strategic collaboration with MSCI and the investment in Virtu’s RFQ-hub.

**All comparisons versus 2Q21 unless otherwise noted.

¹ The FPM for the quarter ended June 30, 2022 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 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 corporate bonds only) and Eurobonds (derived from MarketAxess TRAX data which is estimated to represent approximately 75% of the total European market) product areas.

³ Estimated liquidity taker cost savings is defined as the difference between the winning price and the best disclosed dealer cover price. Estimated liquidity provider cost savings is 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.

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.cfm.  

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; 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 cyber security risks; 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 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 1,900 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 the full trading lifecycle, including automated trading solutions, intelligent data products and a range of post-trade services. Learn more at www.marketaxess.com and on Twitter @MarketAxess.

Contacts
INVESTOR RELATIONS	MEDIA RELATIONS
Stephen Davidson MarketAxess Holdings Inc. +1 212 813 6313 sdavidson2@marketaxess.com	Marisha Mistry MarketAxess Holdings Inc. +1 917 267 1232 mmistry@marketaxess.com
	William McBride RF | Binder +1 917 239 6726

MarketAxess Holdings Inc.
Monthly Volume Statistics

	Average Daily Volume											Total Trading Volume
	Jun-22				Jun-21				% Change			Jun-22				Jun-21				% Change
	($ in millions)
U.S High-Grade
Fixed Rate	$	5,669			$	5,181			9.4	%		$	119,050			$	113,977			4.5	%
Floating Rate		140				156			-10.3	%			2,938				3,442			-14.6	%
Total U.S. High-Grade		5,809				5,337			8.8	%			121,988				117,419			3.9	%
Other Credit
U.S. High-Yield		1,971				1,365			44.4	%			41,396				30,034			37.8	%
Emerging Markets		2,854				2,690			6.1	%			59,939				59,182			1.3	%
Eurobonds		1,622				1,385			17.1	%			32,440				30,475			6.4	%
Other Credit Products3		419				110			280.9	%			8,796				2,412			264.7	%
Total Other Credit		6,866				5,550			23.7	%			142,571				122,103			16.8	%
Total Credit1		12,675				10,887			16.4	%			264,559				239,522			10.5	%
Rates
U.S. Government Bonds 2		20,245				14,538			39.3	%			425,146				319,841			32.9	%
Agencies and Other Government Bonds 1		440				348			26.4	%			9,004				7,659			17.6	%
Total Rates		20,685				14,886			39.0	%			434,150				327,500			32.6	%
Number of U.S. Trading Days 4		21				22
Number of U.K. Trading Days 5		20				22
NOTES:
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 Beginning January 2022, following the integration of the MuniBrokers platform, we are now including MuniBrokers variable commission related trading volume in Other Credit Products.
4 The number of U.S. trading days is based on the SIFMA holiday recommendation calendar.
5 The number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

MarketAxess Holdings Inc.
Quarterly Volume Statistics

	Average Daily Volume											Total Trading Volume
	2Q22				2Q21				% Change			2Q22				2Q21				% Change
	($ in millions)
U.S High-Grade
Fixed Rate	$	5,650			$	4,966			13.8	%		$	350,296			$	312,859			12.0	%
Floating Rate		153				177			-13.6	%			9,489				11,154			-14.9	%
Total U.S. High-Grade		5,803				5,143			12.8	%			359,785				324,013			11.0	%
Other Credit
U.S. High-Yield		1,771				1,457			21.6	%			109,829				91,803			19.6	%
Emerging Markets		2,828				2,496			13.3	%			175,314				157,249			11.5	%
Eurobonds		1,491				1,463			1.9	%			89,480				89,224			0.3	%
Other Credit Products		397				105			278.1	%			24,586				6,587			273.3	%
Total Other Credit		6,487				5,521			17.5	%			399,209				344,863			15.8	%
Total Credit1		12,290				10,664			15.2	%			758,994				668,876			13.5	%
Rates
U.S. Government Bonds 2		22,657				13,850			63.6	%			1,404,750				871,904			61.1	%
Agencies and Other Government Bonds 1		442				263			68.1	%			26,845				16,363			64.1	%
Total Rates		23,099				14,113			63.7	%			1,431,595				888,267			61.2	%
Number of U.S. Trading Days 3		62				63
Number of U.K. Trading Days 4		60				61
NOTES:
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 on the U.K. Bank holiday schedule.