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 monthly trading volume for September 2022 and preliminary variable transaction fees per million (“FPM”) for the quarter ended September 30, 2022.¹

Chris Concannon, President and COO of MarketAxess commented:

“Increasing momentum through the quarter, culminated in a record week of trading at the end of September, driving 20% growth in total credit, and estimated market share above 20% across three major product areas for the month and for the first time in our history. These results reflect the benefit of the investments that we have made to diversify our franchise and grow our international business.

Open Trading estimated transaction cost savings³ were a total of $260 million in 3Q22, which equates to approximately $1,141 per million saved for our clients. Year-to-date estimated transaction cost savings are now approximately $699 million, 57% above the prior year, reflecting the powerful benefits of our unique, all-to-all liquidity pool.

The strong September helped drive record estimated market share in high-yield, Eurobonds and municipals in 3Q22, reflecting the increasing strength of our franchise.”

Select September 2022 highlights*

• Estimated market share exceeded 20% across three major product areas for the first time in our history, with U.S. high-yield achieving record estimated market share of 21.3%, an increase of 730 basis points, joining U.S high-grade and emerging markets with estimated market share in excess of 20%.
• $32.6 billion in total trading average daily volume (“ADV”), up 23%, driven by a 20% increase in total credit ADV to $12.2 billion and a 24% increase in U.S. Treasury ADV to $19.9 billion.
• 21.4% composite corporate bond estimated market share,² up from 17.9%.
• 21.7% estimated U.S. high-grade estimated market share, up from 20.1%, on ADV of $5.7 billion, representing an increase of 24%.
• Record 21.3% estimated U.S. high-yield market share, up from 14.0%, on ADV of $1.8 billion, representing an increase of 38%.
• Emerging markets ADV of $2.8 billion, up 6%; up approximately 11% excluding the impact of foreign currency fluctuations.
• Record 18.3% Eurobonds estimated market share, up from 13.8%, on ADV of $1.5 billion, representing an increase of 2%; up approximately 20% excluding the impact of foreign currency fluctuations.
• 4.2% municipal bond estimated market share, up from 2.5%, on ADV of $360 million.
• Record $10.1 billion in portfolio trading.
• 36% of total credit trading volume was executed via Open Trading®, up from 34%.
  • Estimated total transaction cost savings via Open Trading³ were approximately $95 million, and $699 million year-to-date. Average transaction cost savings per million via Open Trading was $1,142.
• 3.8% U.S. Treasury estimated market share, up from 3.0%, on a 24% increase in ADV.

*All comparisons versus September 2021 unless otherwise noted.

Table 1: September 2022 trading ADV

Table 2: September 2022 estimated market share

Table 3: 3Q22 trading ADV

Table 4: 3Q22 estimated market share

Select 3Q22 highlights**

• Record active total client firms of 1,972 and record active international client firms of 993 reflecting the expanding global liquidity network on our marketplace.
• The preliminary FPM for the quarter for total credit was $165.6, down approximately 9% from the prior year, but in line with 2Q22 levels. The decrease year-over-year was principally due to the increase in corporate bond yields, negatively impacting our U.S. high-grade FPM. The preliminary FPM for the quarter for total rates was $4.10.
• 18% increase in total credit ADV.
• 92% of credit volume on the platform executed by institutional clients.
• Record 20.6% composite corporate bond estimated market share,² up from 18.9%.
• 21.1% U.S. high-grade estimated market share on an 18% increase in ADV.
• Record U.S. high-yield estimated market share of 19.3%, up from 15.3%, on ADV of $1.6 billion, representing an increase of 25%.
• Emerging markets ADV of $2.6 billion, up 8%; up approximately 12% excluding the impact of foreign currency fluctuations.
• Record 17.6% Eurobonds estimated market share, up from 13.1% on ADV of $1.3 billion, representing an increase of 7%; up approximately 25% excluding the impact of foreign currency fluctuations.
• Record 4.9% municipal bond estimated market share, up from 2.2% on trading ADV of $361 million.
• 37% of total credit trading volume was executed via Open Trading, up from 34% in the prior year.
  • Estimated total transaction cost savings via Open Trading³ were approximately $260 million, and $699 million year-to-date. Average transaction cost savings per million via Open Trading was $1,141 in the quarter.
• Record $25 billion in portfolio trading volume, up from $9 billion in 3Q21, and $23 billion in 2Q22.
• 3.6% U.S. Treasury estimated market share, up from 2.6%, on ADV of $20.1 billion, representing an increase of 42%.
  • 226 active participants on the platform, up from 122 in the prior year.

**All comparisons versus 3Q21 unless otherwise noted.

Reported MarketAxess volume in all product categories includes only fully electronic trading volume. MarketAxess trading volumes, TRACE reported volumes and MarketAxess Post-Trade processed volumes are available on the Company’s website at investor.marketaxess.com/volume.

Cautionary Note Regarding Forward-Looking Statements

This press release may contain forward-looking statements, including statements about the outlook and prospects for Company and industry growth, as well as statements about the Company’s future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired because of a number of risks and uncertainties, including: global economic, political and market factors; risks relating to the COVID-19 pandemic, including the possible effects of the economic conditions worldwide resulting from the COVID-19 pandemic; adverse effects as a result of climate change or other ESG risks that could affect our reputation; the level of trading volume transacted on the MarketAxess platform; the rapidly evolving nature of the electronic financial services industry; the level and intensity of competition in the fixed-income electronic trading industry and the pricing pressures that may result; reputational or credibility risks related to our data products and index business; the variability of our growth rate; our ability to introduce new fee plans and our clients’ response; our ability to attract clients or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker-dealer clients; the loss of any of our significant institutional investor clients; our exposure to risks resulting from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in matched principal trades; risks related to self-clearing; the effect of rapid market or technological changes on us and the users of our technology; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design defects, errors, failures or delays with our platforms; our vulnerability to cyber security risks; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our ability to enter into strategic alliances and to acquire other businesses and successfully integrate them with our business; our dependence on our management team and our ability to attract and retain talent; limitations on our flexibility because we operate in a highly regulated industry; the increasing government regulation of us and our clients; risks related to the U.K.’s exit from the European Union; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and securities laws liability; our future capital needs and our ability to obtain capital when needed; limitations on our operating flexibility contained in our credit agreement; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. More information about these and other factors affecting MarketAxess’ business and prospects is contained in MarketAxess’ periodic filings with the Securities and Exchange Commission and can be accessed at www.marketaxess.com.

About MarketAxess

MarketAxess (Nasdaq: MKTX) operates a leading electronic trading platform that delivers greater trading efficiency, a diversified pool of liquidity and significant cost savings to institutional investors and broker-dealers across the global fixed-income markets. Over 1,900 firms leverage MarketAxess’ patented technology to efficiently trade fixed-income securities. MarketAxess’ award-winning Open Trading® marketplace is widely regarded as the preferred all-to-all trading solution in the global credit markets. Founded in 2000, MarketAxess connects a robust network of market participants through the full trading lifecycle, including automated trading solutions, intelligent data products and a range of post-trade services. Learn more at www.marketaxess.com and on Twitter @MarketAxess.

MarketAxess Holdings Inc.

Monthly Volume Statistics

MarketAxess Holdings Inc.

Quarterly Volume Statistics

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"Increasing momentum through the quarter, culminated in a record week of trading at the end of September, driving 20% growth in total credit, and estimated market share above 20% across three major product areas for the first time in our history"