MarketAxess Announces Monthly Volume Statistics for January 2023

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 and preliminary variable transaction fees per million (“FPM”) for the month of January 2023.¹

Chris Concannon, President and COO of MarketAxess commented:

“In January, we generated record credit average daily volume of $14 billion, driven by strong double-digit growth across all credit product areas, including record emerging markets and Eurobonds average daily volume and record estimated market share in municipal bonds. We delivered these strong results against a backdrop of increasing estimated market volumes, with U.S. high-grade increasing 27% year-over-year, driven in part by a strong new issue calendar.

Open Trading estimated price improvement² was approximately $71 million in January and average estimated price improvement per million was approximately $809.

We believe that the current operating environment, characterized by increasing asset inflows and higher industry volumes, reflects market participants’ increasing comfort with operating in a higher interest rate environment. We believe that this continued normalization of market conditions creates a favorable macro-backdrop for our model and that our enhanced product and geographic footprint, higher levels of estimated market share, and increasing U.S. credit market volumes provide us with multiple levers to drive growth in 2023.”

Select January 2023 highlights*

• Record $14.0 billion in total credit average daily volume (“ADV”), up 17% from $12.0 billion in the prior year.
• 14% increase in U.S. high-grade ADV to $6.2 billion with estimated market share of 19.5%. The January new issue calendar was robust and credit market volatility declined.
• 11% increase in U.S. high-yield ADV to $1.9 billion with estimated market share of 16.8%, up from 15.3%.
• Record emerging markets ADV of $3.4 billion, up 12%. Emerging markets local markets volume up 26% from January 2022 levels.
• 33% increase in Eurobonds ADV to a record $1.9 billion with 16.8% (+580 bps) estimated Eurobonds market share, up from 11.0%.
• $516 million in municipal bond ADV, up 81%, with record estimated market share of 6.6% (+150 bps).
• 90% of credit volume on the platform was executed by institutional clients.
• 35% of total credit trading volume was executed via Open Trading®. Estimated price improvement² via Open Trading was approximately $71 million, and average estimated price improvement per million was $809.
• $9.7 billion in Portfolio Trading volume, up 80% from $5.4 billion in the prior year.
• The preliminary FPM¹ for total credit for January 2023 was approximately $160, compared to $165 in December 2022. The decrease in the preliminary FPM in January 2023 compared to December 2022 was driven principally by mix across credit products. The preliminary FPM¹ for total rates was $4.10, in line with December 2022 levels

*All comparisons versus January 2022 unless otherwise noted.

Table 1: January 2023 trading ADV

Table 1A: January 2023 estimated market share

Table 1B: Rolling 6-month trading ADV (period ending Jan. 2023 and Jan. 2022)

Table 1C: Rolling 6-month estimated market share (period ending Jan. 2023 and Jan. 2022)

¹ The FPM for total credit and total rates for the month of January 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 Estimated price improvement consists of estimated liquidity taker price improvement (defined as the difference between the winning price and the best disclosed dealer cover price) and estimated liquidity provider price improvement (defined as the difference between the winning price and then current Composite+ bid or offer level, offer if the provider is buying, bid if provider is selling) at the time of the inquiry.

³ The number of U.S. trading days is based on the SIFMA holiday recommendation calendar and the number of U.K. trading days is based primarily on the U.K. Bank holiday schedule.

⁴ Composite corporate bond estimated market share is defined as combined estimated market share across U.S. high-grade (derived from FINRA TRACE reported data), U.S. high-yield (derived from FINRA TRACE reported data), emerging markets (derived from FINRA TRACE-reportable emerging markets volume, principally U.S. dollar denominated corporates) and Eurobonds (derived from MarketAxess TRAX data which is currently estimated to represent approximately 70% of the total European market) product areas.

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.

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