MarketAxess Expands U.S. Munis to U.K., Europe and Singapore
MARKETAXESS EXPANDS GLOBAL ACCESS FOR US TAXABLE MUNICIPAL BONDS TO THE UK, EUROPE AND SINGAPORE
NEW YORK and LONDON, April 01, 2020 (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 that it has expanded access to US Taxable Municipal Bond liquidity through MarketAxess’ regulated trading venues in the UK, EU and Singapore.
US Taxable Municipal Bond trading on MarketAxess has seen record adoption during the last year, with full-year 2019 trading volume of $5.1 billion, up 53% year-over-year. International demand for US Taxable Municipal Bonds has grown given the need for access to new investment vehicles with varying yield characteristics and broad market recognition for their Environmental, Social and Governance (ESG) qualities. MarketAxess has responded by creating a global electronic US taxable municipal bond marketplace, connecting trading participants across geographies via MarketAxess’ regulated trading venues. The ability to trade over all of MarketAxess’ trading venues will dramatically increase the number of trading connections and allow traders around the world to engage with US Taxable Municipal Bond liquidity.
This extension also supports liquidity provision through the all-to-all Open Trading™ marketplace, allowing any participating investor or dealer client to either take or make liquidity anonymously. Unlike the traditional investor-to-dealer trading model, Open Trading allows for broader connections and expanded trading opportunities. The vast liquidity connections offered through Open Trading drove $385 million in transaction cost savings in 2019.
Stephen Winterstein, Co-Head of Municipal Fixed Income with MarketAxess, said, “Demand for access to US taxable municipal bond market liquidity outside of the United States has grown steadily across the last twelve months, a time in which we have seen accelerated electronic trading adoption. Now with expanded access to a global liquidity pool, our global network of institutional investors and dealers are able to trade taxable municipal bonds on our platform.”
Andre Severino, Global Head of Fixed Income with Nikko Asset Management in London, commented, “In our view, investing in US Taxable Municipal Bonds offers an attractive yield pick-up with broader portfolio diversification and generally strong credit credentials. By having efficient global access to liquidity in these instruments, we can make strategic investment decisions quickly and deliver best execution for our clients.”
For further information on MarketAxess’ Taxable Municipal Bond trading capabilities, please visit our website: https://www.marketaxess.com/trade/municipal-bonds.
Electronification of the municipal bond market also presents a large opportunity.
The success of Northbound trading showed electronic execution is way forward for the bond market.
IRS trading volumes have fragmented without an equivalence agreement.
Increased electronification has created useable and accessible real-time and historic trade data.
Members are evaluating payment-versus-payment for currencies not yet eligible for CLSSettlement.