MarketAxess posted a significant improvement in July, with a
notable 24% increase in total trading volume, driven by remarkable growth in US
high-grade and Eurobonds. The electronic trading platform reported record
figures in portfolio trading, thanks to initiatives and the potential for
future market share expansion.
Strong Growth for Fixed-Income Securities
MarketAxess announced a total average daily volume (ADV) of
$35.1 billion, up by 24.1% from the previous year. This surge was driven by a
12.3% growth in total credit ADV, reaching $12.8 billion, and a 32% increase in
total rates ADV.
Commenting about the performance, Chris Concannon, the CEO
of MarketAxess, said: “In July, we delivered 12% growth in total credit
ADV, driven by an 18% increase in US high-grade, an 18% increase in Eurobonds,
a 7% increase in emerging markets, and a 65% increase in municipal bonds on
record estimated market share. We believe that our strategy, including the
expansion of our portfolio trading offering and dealer solutions, will drive
future market share expansion in US credit.”
In the US credit market, MarketAxess saw significant gains in high-grade bonds, with an ADV of $6.1 billion, marking a 17.9% increase.
Despite this growth, the estimated market share for US high-grade slightly
declined to 18.6% from 19.9% the previous year. US high-yield bonds experienced
a 17.7% drop in ADV, totaling $1.1 billion, with market share dipping to 12.5%.
Emerging Markets
Emerging markets also contributed positively, with a 7.1%
rise in ADV to $3.2 billion, bolstered by growth across LATAM, EMEA, and APAC
regions. Eurobonds ADV increased by 17.8%, reaching $1.8 billion, showcasing
the broad appeal of these securities.
Municipal bonds were a standout, with ADV soaring by 65.2%
to $575 million, achieving a record estimated market share of 8.6%.
Additionally, MarketAxess recorded a substantial increase in portfolio trading
ADV, hitting $972 million, up 178.5% from July 2023 and 11.9% from June 2024.
Wealth management and private banking clients, which saw an
11.8% increase in ADV to $116 million. Dealer RFQ ADV across all credit
products rose by 9.5%, reflecting the platform’s enhanced capabilities. The
preliminary variable transaction fees per million (FPM) for total credit in
July 2024 were approximately $143, down from $160 in the previous year.
This decline resulted from a shift in protocol and product
mix, notably increased portfolio trading and reduced US high-yield activity.
For total rates, the preliminary FPM was around $3.99, compared to $4.63 last
year.
MarketAxess posted a significant improvement in July, with a
notable 24% increase in total trading volume, driven by remarkable growth in US
high-grade and Eurobonds. The electronic trading platform reported record
figures in portfolio trading, thanks to initiatives and the potential for
future market share expansion.
Strong Growth for Fixed-Income Securities
MarketAxess announced a total average daily volume (ADV) of
$35.1 billion, up by 24.1% from the previous year. This surge was driven by a
12.3% growth in total credit ADV, reaching $12.8 billion, and a 32% increase in
total rates ADV.
Commenting about the performance, Chris Concannon, the CEO
of MarketAxess, said: “In July, we delivered 12% growth in total credit
ADV, driven by an 18% increase in US high-grade, an 18% increase in Eurobonds,
a 7% increase in emerging markets, and a 65% increase in municipal bonds on
record estimated market share. We believe that our strategy, including the
expansion of our portfolio trading offering and dealer solutions, will drive
future market share expansion in US credit.”
In the US credit market, MarketAxess saw significant gains in high-grade bonds, with an ADV of $6.1 billion, marking a 17.9% increase.
Despite this growth, the estimated market share for US high-grade slightly
declined to 18.6% from 19.9% the previous year. US high-yield bonds experienced
a 17.7% drop in ADV, totaling $1.1 billion, with market share dipping to 12.5%.
Emerging Markets
Emerging markets also contributed positively, with a 7.1%
rise in ADV to $3.2 billion, bolstered by growth across LATAM, EMEA, and APAC
regions. Eurobonds ADV increased by 17.8%, reaching $1.8 billion, showcasing
the broad appeal of these securities.
Municipal bonds were a standout, with ADV soaring by 65.2%
to $575 million, achieving a record estimated market share of 8.6%.
Additionally, MarketAxess recorded a substantial increase in portfolio trading
ADV, hitting $972 million, up 178.5% from July 2023 and 11.9% from June 2024.
Wealth management and private banking clients, which saw an
11.8% increase in ADV to $116 million. Dealer RFQ ADV across all credit
products rose by 9.5%, reflecting the platform’s enhanced capabilities. The
preliminary variable transaction fees per million (FPM) for total credit in
July 2024 were approximately $143, down from $160 in the previous year.
This decline resulted from a shift in protocol and product
mix, notably increased portfolio trading and reduced US high-yield activity.
For total rates, the preliminary FPM was around $3.99, compared to $4.63 last
year.
This post is originally published on FINANCEMAGNATES.
