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 January 2025.1
Chris Concannon, CEO of MarketAxess, commented:
“Our investments in protocols and workflow tools across the client-initiated, portfolio trading and dealer-initiated channels are beginning to show early signs of progress. While we are disappointed with our U.S. credit market share in January, in the client-initiated channel, we generated record block trading ADV in emerging markets hard currency. In the portfolio trading channel, we are continuing to build momentum after our launch of global portfolio trading on X-Pro in November 2024. Portfolio trading volume in Eurobonds increased 219% from January 2024 levels and increased 26% from December 2024. Additionally, we launched benchmark pricing for portfolio trading in Europe at the end of January, which is an important enhancement for our clients. Last, in the dealer-initiated channel, we generated record ADV in Dealer RFQ of $1.5 billion, up 23% from the prior year, and up 45% from December 2024 levels. We believe that the enhancements we have made will continue to show progress in the coming quarters and enhance our market share.”
Select January 2025 Highlights
- Total average daily volume (“ADV”) of $38.9 billion increased 22% compared to the prior year, and increased 22% compared to December 2024 levels. Total rates ADV of $24.5 billion increased 45% compared to the prior year, and increased 24% compared to December 2024. Total credit ADV of $14.5 billion was down 3% compared to the prior year, but increased 18% compared to December 2024.
U.S. Credit2
- U.S. high-grade ADV of $6.9 billion decreased 8% compared to the prior year, but increased 17% compared to December 2024. Estimated market ADV increased 0.2% compared to the prior year, and increased 29% compared to December 2024. Estimated market share was 17.7%, down from 19.1% in the prior year, and down from 19.5% in December 2024. Including the impact of single-dealer portfolio trades, estimated market share was 17.9%, down from 19.7% in the prior year, and down from 19.6% in December 2024.
- U.S. high-yield ADV of $1.3 billion decreased 8% compared to the prior year, but increased 5% compared to December 2024. Estimated market ADV decreased 0.4% compared to the prior year, and increased 29% compared to December 2024. Estimated market share was 12.0%, down from 13.0% in the prior year, and down from 14.7% in December 2024. Including the impact of single-dealer portfolio trades, estimated market share was 12.3%, down from 13.1% in the prior year, and down from 14.7% in December 2024.
Other Credit
- Emerging markets ADV of $3.6 billion decreased 2% compared to the prior year, but increased 27% compared to December 2024. The year-over-year decrease was driven by an 11% decrease in local currency ADV, offset by a 1% increase in hard currency ADV.
- Eurobonds ADV of $2.1 billion increased 8% compared to the prior year, and increased 30% compared to December 2024.
- Municipal bond ADV of $535 million increased 32% compared to the prior year, but decreased 18% compared to December 2024. Estimated market ADV increased 40% compared to the prior year, but decreased 5% compared to December 2024. Estimated market share was 5.8%, down from 6.2% in the prior year, and down from 6.8% in December 2024.
Strategic Priority Related Protocols & Workflow Tools
- $0.9 billion in total portfolio trading ADV increased 1% compared to the prior year, but decreased 12% compared to December 2024. 77% of portfolio trading volume was executed over X-Pro.
- Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV decreased 7% compared to December 2024.
- Our estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 14.7% in January 2025, down from 16.7% in December 2024.
- Portfolio trading represented approximately 9% of U.S. high-grade and U.S. high-yield TRACE in January 2025, down from 13% in December 2024.
- Open Trading ADV of $4.2 billion decreased 8% compared to the prior year, but increased 16% compared to December 2024. Open Trading share3 of total credit trading volume was 34%, down from 35% in the prior year, and down from 36% in December 2024.
- Record Dealer RFQ ADV of $1.5 billion across all credit products increased 23% compared to the prior year, and increased 45% compared to December 2024.
- AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $145 million, up 9% compared to the prior year, and up 8% compared to December 2024.
Rates
- Total rates ADV of $24.5 billion increased 45% compared to the prior year, and increased 24% compared to December 2024.
Variable Transaction Fees Per Million (FPM)1
- The preliminary FPM for total credit for January 2025 was approximately $141, down from $156 in the prior year, and down from $148 in December 2024. The decline in total credit FPM year-over-year was due to product and protocol mix, principally the lower duration of bonds traded in U.S. high-grade, driven by a decrease in the weighted average years to maturity. The decrease in total credit FPM month-over-month was due to product mix, principally the lower duration of bonds traded in U.S. high-grade, driven by a decrease in the weighted average years to maturity, as well as less U.S. high-yield activity. The preliminary FPM for total rates for January 2025 was approximately $4.25, down from $5.39 in the prior year, but up from $4.14 in December 2024. The decline in total rates FPM year-over-year was driven by the impact of product mix within our rates business.
Table 1: January 2025 ADV
| $ in millions | US/UK Trading Days4 | Total | Total ADV | Total Credit | High-Grade | High-Yield | Emerging Markets | Eurobonds | Municipal Bonds | Total Rates | US Govt. Bonds | Agcy./Other Govt Bonds |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Jan-25 | 21/22 | $38,926 | $14,473 | $6,912 | $1,284 | $3,638 | $2,100 | $535 | $24,453 | $23,374 | $1,079 | |
| Dec-24 | 21/20 | $32,037 | $12,285 | $5,921 | $1,219 | $2,869 | $1,619 | $656 | $19,752 | $18,735 | $1,017 | |
| Jan-24 | 21/22 | $31,855 | $14,964 | $7,481 | $1,397 | $3,726 | $1,943 | $405 | $16,891 | $16,406 | $485 |
Table 1A: January 2025 estimated market share
| High-Grade | High-Yield | High-Grade/High-Yield Combined | Municipals | U.S. Govt. Bonds | |
|---|---|---|---|---|---|
| Jan-25 | 17.7% | 12.0% | 16.4% | 5.8% | 2.6% |
| Dec-24 | 19.5% | 14.7% | 18.5% | 6.8% | 2.3% |
| Jan-24 | 19.1% | 13.0% | 17.8% | 6.2% | 1.8% |
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
1 The FPM for total credit and total rates for January 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 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.
3 Open Trading share of total credit trading volume is derived by calculating total Open Trading volume across all credit products where Open Trading is offered and dividing it by total credit trading volume across all credit products where Open Trading is offered.
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.
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.
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. Learn more at www.marketaxess.com.