MarketAxess Holdings, the operator of a leading electronic trading platform for fixed-income securities, announced trading volume and preliminary variable transaction fees per million (“FPM”) for July 2024. ¹

Chris Concannon, CEO of MarketAxess, commented:

“In July, we delivered 12% growth in total credit ADV, driven by an 18% increase in U.S. 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 also generated record portfolio trading ADV of $972 million. These strong results helped offset a decline in U.S. high-yield ADV. We are not pleased with the progression of U.S. credit market share in July, but we are encouraged by the prospect for potential increases in market volatility in the coming months. We believe that our strategy, including the expansion of our portfolio trading offering and dealer solutions, through the roll-out of MarketAxess X-Pro to our global client base, will drive future market share expansion in U.S. credit.”

Select July 2024 highlights*

• Total average daily volume (“ADV”) of $35.1 billion , up 24.1% on strong growth in total credit ADV to $12.8 billion , up 12.3% ,  and a 32.0% increase in total rates ADV.

U.S. Credit

• U.S. high-grade ADV of $6.1 billion ,  up 17.9% on a 26.5% increase in estimated market ADV.  Estimated market share was 18.6% ,  down from 19.9% in the prior year.
• U.S. high-yield ADV of $1.1 billion , down 17.7% , with estimated market share of 12.5% , down from 17.1% in the prior year. U.S. high-yield estimated market ADV increased 12.4% compared to the prior year.

Other Credit

• Emerging markets ADV of $3.2 billion , up 7.1%, with strong regional contribution across the LATAM , EMEA and APAC regions. The increase was driven by a 5.4% increase in hard currency ADV, and a 10.6% increase in  local currency markets ADV.
• Eurobonds ADV  of $1.8 billion , up 17.8% compared to the prior year.
• Municipal bond  ADV of $575 million , up 65.2% , with estimated market ADV up 5.4% . Record estimated market share of 8.6% , up from 5.5% in the prior year. ²

Strategic Priority Related Protocols & Workflow Tools

• Record $972 million in  portfolio trading ADV, up 178.5% from July 2023, and up 11.9% from June 2024. Our estimated market share of U.S. high grade and U.S. high-yield TRACE portfolio trading was 17.2% in July 2024, up from 15.5% in June 2024. Portfolio trading represented 10.6% of U.S. high-grade and U.S. high-yield TRACE in July 2024, compared to 10.4% in June 2024.
• 35% Open Trading share ³ of total credit trading volume, up from 34% in the prior year.
• Dealer RFQ ADV of $1.0 billion across all credit products increased 9.5%.
• AxessIQ , the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $116 million , up 11.8% from the prior year.

Rates

• Total rates ADV of $22.3 billion , up 32.0% versus the prior year. ²

Variable Transaction Fees Per Million (FPM)

• The preliminary FPM ¹ for total credit for July 2024 was approximately $143 , down from $160 in the prior year, and down from $148 in June. The decline in total credit FPM year-over-year was due to protocol and product mix shift, principally increased portfolio trading and lower levels of U.S. high-yield activity . The preliminary FPM for total rates was  approximately  $3.99 , compared to $4.63 in the prior year.

*All comparisons versus July 2023 unless otherwise noted.

Source: MarketAxess