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

Chris Concannon, CEO of MarketAxess, commented:

“We delivered record total credit trading volume in November, driven by strong growth across all credit products. The adoption of MarketAxess X-Pro continues to expand, with 30% of our portfolio trading volume executed over the X-Pro platform quarter-to-date, up from 18% in third quarter 2023. We believe that the continued improvement in the market backdrop, and the high levels of client engagement with X-Pro, our unique proprietary data products, and our automated trading solutions, position us for growth in the coming quarters.”

Select November 2023 highlights*

• Total credit average daily trading volume (“ADV”) of $14.3 billion, up 9.3% versus the prior year, and up 13.4% versus October 2023 levels.
• U.S. high-grade ADV of $6.5 billion, up 11.2% from the prior year, and up 9.0% versus October 2023. Estimated market share of 20.6%, up slighly from 20.5% in the prior year, and up from 20.3% in October 2023. U.S. high-grade estimated market ADV increased 10.7%, compared to the prior year, and was up 7.8% versus October 2023.
• U.S. high-yield ADV of $1.9 billion, up 2.5% compared to the prior year, and up 17.9% from October 2023 levels. Estimated market share of 17.0%, down from 19.3% in the prior year, but up from 16.7% in October 2023. U.S. high-yield estimated market ADV increased 16.5% versus the prior year, and increased 16.0% compared to October 2023. The decrease in U.S. high-yield estimated market share year-over-year was driven principally by lower levels of credit spread volatility, resulting in an estimated 8.1% decrease in ETF market maker activity on the platform. ETF market maker activity increased an estimated 17.1% from October 2023 levels.
• Emerging markets ADV of $3.3 billion, up 7.6% from the prior year, and up 18.5% from October 2023 levels. The year-over-year increase was principally due to a 21.8% increase in local currency trading ADV. The month-over-month increase was driven by strong growth across both hard and local currency markets trading ADV. Emerging markets estimated market ADV increased 15.2%, compared to the prior year, and increased 21.1% compared to October 2023.²
• Eurobonds ADV of $2.0 billion, up 13.7% from the prior year, and up 16.5% from October 2023. Eurobonds estimated market ADV increased 31.7% versus the prior year, and increased 18.7% compared to October 2023.³
• Record municipal bond ADV of $601 million, up 9.9% from the prior year, and up 13.0% from October 2023. Estimated market share of 6.0%, up from 5.3% in the prior year and 5.1% in October 2023. Estimated market ADV down 3.6% compared to the prior year, and down 4.1% compared to October 2023.
• AxessIQ, our order and execution workflow solution designed for wealth management and private banking clients, achieved record ADV of $157 million, up 63.5% from the prior year, and up 35.3% from October 2023 levels.
• $13.2 billion in total portfolio trading volume, up 56.7% from November 2022, but down 13.1% from record levels in October 2023. Quarter-to-date, approximately $7.5 billion, or 29.6%, of our portfolio trading volume was executed over MarketAxess X-Pro, our new trading platform, compared to approximately $4.8 billion, or 18.2%, in 3Q23.
• 35% Open Trading^® share⁴ of total credit trading volume, down from 38% in the prior year, but in line with October 2023 levels.
• Total Rates ADV of $14.5 billion, down 24.1% versus the prior year, and down 28.5% from October 2023 levels. U.S. Treasury ADV on the platform in November was negatively impacted by an outage at ICBC, the third-party the Company was then using for U.S. Treasury settlement services.
• The preliminary FPM¹ for total credit for November 2023 was approximately $157, compared to $163 in the prior year, and $153 in October 2023. Quarter-to-date, the FPM was $155, in line with 3Q23 levels. The decline in total credit FPM compared to the prior year was due principally to product and protocol mix shift. The increase in total credit FPM compared to October 2023 was driven by improved U.S. high-grade FPM, specifically, more favorable Open Trading mix, and the higher duration of bonds traded, principally on lower bond yields. The preliminary FPM for total rates was $5.00, compared to $4.18 in the prior year.

Source: MarketAxess

*All comparisons versus November 2022 unless otherwise noted.

Table 1: November 2023 trading ADV

			CREDIT							RATES
$ in millions (unaudited)	US/UK Trading Days5	Total ADV	Total Credit	High-Grade	High-Yield	Emerging Markets	Eurobonds	Municipal Bonds	Total Rates	US Govt. Bonds	Agcy./Other Govt. Bonds
Nov-23	21/22	$28,839	$14,347	$6,523	$1,913	$3,317	$1,988	$601	$14,492	$13,992	$500
Nov-22	20/22	$32,228	$13,126	$5,865	$1,866	$3,083	$1,749	$547	$19,102	$18,709	$393
% Change		(11%)	9%	11%	3%	8%	14%	10%	(24%)	(25%)	27%

Table 1A: November 2023 estimated market share

	CREDIT						RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High-Yield Combined	Eurobonds3	Composite Corporate Bond6	Municipals	US Govt. Bonds
Nov-23	20.6%	17.0%	19.6%	15.3%	18.9%	6.0%	2.0%
Nov-22	20.5%	19.3%	20.2%	17.7%	20.3%	5.3%	2.9%
Bps Change	+10 bps	(230) bps	(60) bps	(240) bps	(140) bps	+70 bps	(90) bps

Table 1B: Rolling 6-month trading ADV (period ending November 30, 2023, compared to period ending November 30, 2022)

			CREDIT							RATES
$ in millions (unaudited)	US/UK Trading Days5	Total ADV	Total Credit	High-Grade	High-Yield	Emerging Markets	Eurobonds	Municipal Bonds	Total Rates	US Govt. Bonds	Agcy./Other Govt. Bonds
Nov-23	126/130	$29,486	$12,128	$5,618	$1,478	$2,928	$1,649	$444	$17,358	$16,928	$430
Nov-22	125/127	$31,979	$11,840	$5,425	$1,783	$2,747	$1,453	$413	$20,139	$19,779	$360
% Change		(8%)	2%	4%	(17%)	7%	13%	8%	(14%)	(14%)	19%

Table 1C: Rolling 6-month estimated market share (period ending November 30, 2023, compared to period ending November 30, 2022)

		CREDIT						RATES
(unaudited)		High-Grade	High-Yield	High-Grade/High-Yield Combined	Eurobonds3	Composite Corporate Bond6	Municipals	US Govt. Bonds
Nov-23		20.3%	16.4%	19.3%	15.7%	18.9%	5.6%	2.7%
Nov-22		21.0%	19.5%	20.6%	17.6%	20.6%	4.8%	3.4%
Bps Change		(70) bps	(310) bps	(130) bps	(190) bps	(170) bps	+80 bps	(70) bps
1		The FPM for total credit and total rates for November 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 ADV is derived by combining MarketAxess TraX emerging markets trading volume (currently estimated to represent approximately 60% of the total emerging markets market beginning in September 2023, up from the earlier estimate of 55%) and FINRA TRACE-reportable emerging markets trading volume, principally U.S. dollar denominated corporates.
3		Eurobonds estimated market ADV and estimated market share are derived from MarketAxess TraX data for Eurobonds and covered bonds market trading volume, which is currently estimated to represent approximately 80% of the total European market beginning in September 2023, up from the previous estimate of 70%.
4		Open Trading share of total credit trading volume 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.