MarketAxess Holdings Inc., 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 monthly trading volume for December 2022 and preliminary variable transaction fees per million (“FPM”) for the month of December and the quarter ended December 31, 2022.¹

Today we announced fully-electronic trading volume for December 2022. Read the full press release here: https://t.co/C8Ivx23rMF#fixedincome #electronictrading $MKTX pic.twitter.com/zCTeBRD9EC

— MarketAxess (@MarketAxess) January 5, 2023

Chris Concannon, President and COO of MarketAxess commented: “We delivered another strong month with a 27% increase in total credit ADV, driven by a 26% increase in U.S. high-grade ADV and record estimated market share across high-yield, emerging markets, Eurobonds and municipals. These market share gains reflect the powerful benefits of our unique all-to-all liquidity pool.

Open Trading estimated price improvement⁴ was approximately $79 million in December and average estimated price improvement per million was approximately $1,042. For full-year 2022, estimated price improvement was approximately $946 million, 65% above the prior year.

The strong share gains we delivered this year reflect the increasing strength of our franchise, driven by the investments we have made to expand our product and geographic foundation. We believe that these strong results and the favorable backdrop for fixed income markets in 2023 create a very attractive operating environment for our model in the new year.”

Select December 2022 highlights*

• Strong December with 27% increase in total credit average daily volume (“ADV”) to $10.6 billion.
• Record 22.8% (+140 bps) composite corporate bond estimated market share,² up from 21.4%.
• 26% increase in U.S. high-grade ADV to $5.1 billion with estimated market share of 23.4%. Estimated U.S. high-grade TRACE market ADV increased 27%.
• 25% increase in U.S. high-yield ADV to $1.6 billion with record estimated market share of 21.4% (+310 bps), up from 18.3%.
• Emerging markets ADV of $2.1 billion, down slightly; flat excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%. Record 32.9% estimated market share of FINRA TRACE-reportable emerging markets trading volume.³
• Record 19.6% (+520 bps) estimated Eurobonds market share, up from 14.4%. $1.4 billion in Eurobonds ADV, representing an increase of 56%; up approximately 63% excluding the impact of foreign currency fluctuations.
• $473 million in municipal bond ADV with record estimated market share of 5.5%(+330 bps).
• 38% of total credit trading volume was executed via Open Trading®, up from 36%. Estimated price improvement⁴ via Open Trading was approximately $79 million, and average estimated price improvement per million was $1,042.
• The preliminary FPM for total credit for December was $165, compared to $163 in November. The increase in U.S. high-grade average fees per million in December, driven in part by an increase in duration during the month, was partially offset by lower average fees per million in other credit products due to product mix.¹

*All comparisons versus December 2021 unless otherwise noted.

Table 1: December 2022 trading ADV

Table 1A: December 2022 estimated market share

Table 1B: 4Q22 trading ADV

Table 1C: 4Q22 estimated market share

Select 4Q22 highlights**

• 24% increase in total credit ADV to $12.0 billion.
• Record 20.9% (+210 bps) composite corporate bond estimated market share,² up from 18.8%.
• 22% increase in U.S. high-grade ADV to $5.5 billion with estimated market share of 21.1%. Estimated U.S. high-grade TRACE market ADV increased 23%.
• Record U.S. high-yield estimated market share of 20.5% (+500 bps), up from 15.5%, on ADV of $1.8 billion, representing an increase of 33%.
• Emerging markets ADV of $2.7 billion, up 3%; up approximately 5% excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%.
• Record31.5% estimated market share of FINRA TRACE-reportable emerging markets trading volume.³
• Record 18.2% (+500 bps) Eurobonds estimated market share, up from 13.2% on record ADV of $1.6 billion, representing an increase of 34%; up approximately 49% excluding the impact of foreign currency fluctuations.
• Record 5.0% (+260 bps) municipal bond estimated market share on record ADV of $500 million.
• Record 38% of total credit trading volume was executed via Open Trading, up from 36% in the prior year. Estimated price improvement⁴ via Open Trading was approximately $246 million, and average estimated price improvement per million was $988.
• Record $31 billion in portfolio trading volume, up from $13 billion in 4Q21, and $25 billion in 3Q22.
• 3.1% (+20 bps) U.S. Treasury estimated market share,up from 2.9%.
• The preliminary FPM for total credit for the quarter was $164.0, compared to $165.6 in 3Q22. The preliminary FPM for total rates for the quarter was $4.10.¹

**All comparisons versus 4Q21 unless otherwise noted.

Source: MarketAxess