MarketAxess Reports 32% Increase in Trading ADV10.19.2022
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 financial results for the third quarter of 2022.
We reported revenues of $172.1mn, operating income of $76.3mn and diluted EPS of $1.58 for the third quarter of 2022. Join us for our third quarter earnings call today, October 19, at 10am ET. https://t.co/sEhCOs2WXH#earnings #fixedincome #electronictrading $MKTX
— MarketAxess (@MarketAxess) October 19, 2022
Rick McVey, Chairman of the Board and CEO of MarketAxess, commented:
“We delivered another quarter of record market share gains across our expanded product set in the third quarter, driven by increased value for clients from Open Trading liquidity. Our diversified liquidity pool is helping both investor and dealer clients navigate through incredibly difficult and volatile fixed-income trading conditions. The foundation of our business has never been stronger with growing market share in existing as well as new products, an expanded global footprint and record numbers of active clients.
“We believe the growth in both public and private debt around the world, combined with higher interest rates, creates a long runway for growth in fixed income e-trading in the years ahead. We are in a strong position to capitalize on this opportunity due to our significant global institutional client network and our unique capabilities in all-to-all trading.”
3Q22 financial and operational highlights*
- Record levels of estimated market share driving strong growth in trading volume. Estimated market share records across composite corporate bond1 (+170 bps), high-yield (+400 bps), Eurobonds (+450 bps) and municipals (+270 bps).
- Revenues of $172.1 million, up 6%. Excluding the impact of foreign currency fluctuations, revenues would have increased approximately 9%.
- Total expenses of $95.8 million, up 9%. Excluding the impact of foreign currency fluctuations, expenses would have increased approximately 13%.
- Diluted EPS of $1.58 on net income of $59.3 million, compared to $1.52 in the prior year, representing an increase of 4%.
- $94.3 million in EBITDA, up 6%, and EBITDA margin of 54.8%, in line with the prior year.
- Board declared $0.70 per share dividend.
- Record 1,972 total active clients, up 7%, and a record 993 active international clients, up 6%, reflecting the continued expansion of our global liquidity pool.
- Record 11,530 active traders on the platform, up 6% from the prior year.
- Total trading average daily volume (“ADV”) of $31.4 billion, up 32%, driven by an 18% increase in total credit ADV to $11.0 billion and a 42% increase in U.S. Treasury ADV to $20.1 billion.
- $260 million in estimated transaction cost savings2 for clients via Open Trading®, our differentiated liquidity pool; $699 million in estimated transaction cost savings2 year-to-date, up 57%.
- Record $25 billion in portfolio trading volume, up from $9 billion in 3Q21 and $23 billion in 2Q22.
Janus Henderson traders use a broad spectrum of electronic tools to optimize the search for liquidity.
Increased volatility drives the buy side to take a closer look at how they are trading.
Flow to electronic trading platforms increased during the first half of 2022.
ADV was an average $1.1 trillion for the quarter, up 14% form the prior-year period.
Electronic workflows enable market participants to streamline each step of the trading process.