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MarketAxess Announces Monthly Volume Statistics for May 2023

MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced monthly trading volume and preliminary variable transaction fees per million (“FPM”) for the month of May 2023.1

Chris Concannon, CEO of MarketAxess, commented:

“We registered our best single day of credit trading volume ever in May and delivered solid estimated year-over-year market share gains across U.S. high-yield, emerging markets, Eurobonds and municipal bonds. Additionally, estimated market share in U.S. high-grade, emerging markets and Eurobonds are showing sequential improvement versus first quarter 2023 levels. Credit spread volatility has remained fairly subdued since the initial March market dislocation, which has reduced trading activity by select client segments in U.S. high-yield. The strong rebound in the new issuance calendar in May is a positive for the macro backdrop and the passage of the debt ceiling bill reduces risk and uncertainty in the outlook for fixed income.”

Select May 2023 highlights*

  • U.S. high-grade ADV of $5.8 billion, up 2.1%, with estimated market share of 20.2%. The new issue calendar snapped back strongly in May to $155 billion, up approximately 131% from April 2023 levels. Quarter-to-date, estimated market share in U.S. high-grade is 20.8%, running 90 basis points above first quarter 2023 levels.
  • U.S. high-yield ADV of $1.5 billion with estimated market share of 16.7% (+80 bps). Low credit spread volatility has reduced trading activity in some client segments within U.S. high-yield with estimated U.S. high-yield TRACE market ADV down 14.5%.
  • Emerging markets trading volume decreased 4.8% compared to a decrease of 6.8% in emerging markets estimated market trading volume.2
  • 27.8% increase in Eurobonds ADV to $1.8 billion with 17.7% (+350 bps) estimated market share, up from 14.2%.3 Quarter-to-date, estimated market share in Eurobonds is 19.7%, running 370 basis points above first quarter 2023 levels.
  • Municipal bond ADV of $403 million, up 3.4%, with estimated market share of 6.0% (+230 bps), up from 3.7%.
  • 34% Open Trading® share4 of total credit trading volume. Estimated price improvement5 via Open Trading was approximately $61 million.
  • The preliminary FPM1 for total credit for May 2023 was approximately $162, compared to $159 in April 2023 and $164 in the prior year. The preliminary FPM for total rates was $4.60, compared to $4.45 in May 2022.

*All comparisons versus May 2022 unless otherwise noted.

Table 1: May 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
May-23

22/20

$

28,354

 

$

12,040

 

$

5,763

 

$

1,519

 

$

2,524

 

$

1,822

 

$

403

 

$

16,314

 

$

15,907

 

$

407

 

May-22

21/21

$

34,797

 

$

11,958

 

$

5,647

 

$

1,690

 

$

2,778

 

$

1,426

 

$

390

 

$

22,839

 

$

22,321

 

$

518

 

% Change

 

(19

%)

 

1

%

 

2

%

 

(10

%)

 

(9

%)

 

28

%

 

3

%

 

(29

%)

 

(29

%)

 

(21

%)

Table 1A: May 2023 estimated market share

CREDIT RATES


(unaudited)
High-Grade High-Yield High-Grade/High-

Yield Combined
Eurobonds Composite

Corporate Bond7
Municipals US Govt.

Bonds
May-23

20.2

%

16.7

%

19.3

%

17.7

%

19.3

%

6.0

%

2.4

%

May-22

21.7

%

15.9

%

20.0

%

14.2

%

19.4

%

3.7

%

3.6

%

Bps Change (150) bps +80 bps (70) bps +350 bps (10) bps +230 bps (120) bps

Table 1B: Rolling 6-month trading ADV (period ending May 31, 2023 compared to period ending May 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
May-23

124/122

$

33,006

 

$

12,695

 

$

5,916

 

$

1,746

 

$

2,751

 

$

1,834

 

$

435

 

$

20,311

 

$

19,889

 

$

422

 

May-22

125/124

$

34,870

 

$

11,402

 

$

5,347

 

$

1,574

 

$

2,820

 

$

1,365

 

$

278

 

$

23,468

 

$

23,070

 

$

398

 

% Change

 

(5

%)

 

11

%

 

11

%

 

11

%

 

(2

%)

 

34

%

 

56

%

 

(13

%)

 

(14

%)

 

6

%

Table 1C: Rolling 6-month estimated market share (period ending May 31, 2023 compared to period ending May 31, 2022)

CREDIT RATES
(unaudited) High-Grade High-Yield High-Grade/High-

Yield Combined
Eurobonds Composite

Corporate Bond7
Municipals US Govt.

Bonds
May-23

20.6

%

18.2

%

20.0

%

17.5

%

19.9

%

6.1

%

3.2

%

May-22

21.6

%

16.0

%

20.0

%

13.0

%

19.0

%

3.8

%

3.5

%

Bps Change (100) bps +220 bps 0 bps +450 bps +90 bps +230 bps (30) bps

1 The FPM for total credit and total rates for the month of May 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.

2 Emerging markets estimated market trading volume 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.

3 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.

4 Total credit Open Trading share 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.

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 May 31,

 

 

In millions (unaudited)

 

 

2023

 

 

2022

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

126,777

 

 

$

5,763

 

 

$

118,573

 

 

 

$

5,647

 

 

 

6.9

 

%

 

2.1

 

%

High-yield

 

 

 

33,419

 

 

 

1,519

 

 

 

35,495

 

 

 

 

1,690

 

 

 

(5.8

)

 

 

(10.1

)

 

Emerging markets

 

 

 

55,533

 

 

 

2,524

 

 

 

58,341

 

 

 

 

2,778

 

 

 

(4.8

)

 

 

(9.1

)

 

Eurobonds

 

 

 

36,443

 

 

 

1,822

 

 

 

29,940

 

 

 

 

1,426

 

 

 

21.7

 

 

 

27.8

 

 

Other credit

 

 

 

9,076

 

 

 

412

 

 

 

8,766

 

 

 

 

417

 

 

 

3.5

 

 

 

(1.2

)

 

Total credit trading1

 

 

 

261,248

 

 

 

12,040

 

 

 

251,115

 

 

 

 

11,958

 

 

 

4.0

 

 

 

0.7

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

349,959

 

 

 

15,907

 

 

 

468,735

 

 

 

 

22,321

 

 

 

(25.3

)

 

 

(28.7

)

 

Agency and other government bonds1

 

 

 

8,521

 

 

 

407

 

 

 

10,886

 

 

 

 

518

 

 

 

(21.7

)

 

 

(21.4

)

 

Total rates trading

 

 

 

358,480

 

 

 

16,314

 

 

 

479,621

 

 

 

 

22,839

 

 

 

(25.3

)

 

 

(28.6

)

 

Total trading

 

 

$

619,728

 

 

$

28,354

 

 

$

730,736

 

 

 

$

34,797

 

 

 

(15.2

)

 

 

(18.5

)

 

Number of U.S. Trading Days3

 

 

 

 

 

 

22

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

20

 

 

 

 

 

 

 

21

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date Ended May 31,

 

 

In millions (unaudited)

 

 

2023

 

 

2022

 

 

% Change

 

 

 

 

 

Volume

 

 

ADV

 

 

Volume

 

 

 

ADV

 

 

Volume

 

 

ADV

 

 

Credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

High-grade

 

 

$

627,086

 

 

$

6,088

 

 

$

579,891

 

 

 

$

5,630

 

 

 

8.1

 

%

 

8.1

 

%

High-yield

 

 

 

183,754

 

 

 

1,784

 

 

 

169,259

 

 

 

 

1,643

 

 

 

8.6

 

 

 

8.6

 

 

Emerging markets

 

 

 

295,995

 

 

 

2,874

 

 

 

305,114

 

 

 

 

2,962

 

 

 

(3.0

)

 

 

(3.0

)

 

Eurobonds

 

 

 

196,737

 

 

 

1,929

 

 

 

151,115

 

 

 

 

1,467

 

 

 

30.2

 

 

 

31.5

 

 

Other credit

 

 

 

45,307

 

 

 

440

 

 

 

34,865

 

 

 

 

338

 

 

 

29.9

 

 

 

30.2

 

 

Total credit trading1

 

 

 

1,348,879

 

 

 

13,115

 

 

 

1,240,244

 

 

 

 

12,040

 

 

 

8.8

 

 

 

8.9

 

 

Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. government bonds2

 

 

 

2,125,292

 

 

 

20,634

 

 

$

2,534,322

 

 

 

 

24,605

 

 

 

(16.1

)

 

 

(16.1

)

 

Agency and other government bonds1

 

 

 

44,792

 

 

 

438

 

 

 

44,359

 

 

 

 

431

 

 

 

1.0

 

 

 

1.6

 

 

Total rates trading

 

 

 

2,170,084

 

 

 

21,072

 

 

 

2,578,681

 

 

 

 

25,036

 

 

 

(15.8

)

 

 

(15.8

)

 

Total trading

 

 

$

3,518,963

 

 

$

34,187

 

 

$

3,818,925

 

 

 

$

37,076

 

 

 

(7.9

)

 

 

(7.8

)

 

Number of U.S. Trading Days3

 

 

 

 

 

 

103

 

 

 

 

 

 

 

103

 

 

 

 

 

 

 

 

 

 

Number of U.K. Trading Days4

 

 

 

 

 

 

102

 

 

 

 

 

 

 

103

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

 

 

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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