MarketAxess Reports Record Trading Volume for Q4 2024

MarketAxess Trading Volume Highlights

MarketAxess Holdings Inc. (NASDAQ: MKTX), a renowned electronic trading platform for fixed-income securities, has disclosed remarkable trading volumes and preliminary variable transaction fees per million (FPM) for December 2024 and the fourth quarter concluding on December 31, 2024. This announcement comes in light of their robust performance driven by strategic growth in various product areas.

CEO Commentary

Chris Concannon, the CEO of MarketAxess, shared insights on their remarkable achievements in the fourth quarter. He noted that they delivered a record total trading average daily volume (ADV), with significant year-over-year growth in international products, municipal bonds, and rates. The company also saw an 18% increase in ADV for emerging markets. Chris highlighted that 77% of portfolio trades were executed on X-Pro, showcasing the platform's increasing traction and performance benefits.

Performance Overview: December 2024

In December, MarketAxess achieved an impressive total average daily volume (ADV) of $32.0 billion, marking a 19% increase year-over-year, despite a 29% decrease from November 2024. This monthly decline is attributed to the typical seasonal slowdown experienced across most product areas. Total rates ADV surged to $19.8 billion, registering a 34% increase compared to the previous year, while credit ADV remained steady at $12.3 billion compared to December 2023.

U.S. Credit Trading Insights

The U.S. high-grade credit trading ADV was $5.9 billion, reflecting a 3% decrease from the previous year and a 9% drop from November levels. However, the estimated market share rebounded to 19.5%. The high-yield ADV reached $1.2 billion, down 14% year-over-year, but up 5% compared to the previous quarter.

Key Highlights from Q4 2024

For Q4, MarketAxess reported a record total ADV of $41.0 billion, an increase of 38% year-over-year, facilitated mainly by total rates ADV hitting $27.1 billion, which saw a whopping 64% increase from the previous year. The company faced temporary disruptions in U.S. Treasury ADV due to a settlement service outage but maintains a robust position moving forward.

Strategic Highlights in Credit Trading

The implementation of strategic priority protocols has enabled MarketAxess to benefit from a total of $1.1 billion in portfolio trading ADV, a significant 57% increase. The platform's market share for U.S. high-grade and high-yield TRACE portfolio trading surged to 16.2%, signifying its robust competitive positioning.

Variable Transaction Fees Analysis

The preliminary variable transaction fee per million for total credit in December was approximately $148, down from $159 the previous year. The transactional dynamics reflect the changing product mix, especially due to increased portfolio trading.

Conclusion

The end of 2024 has positioned MarketAxess as a formidable player in the electronic trading space, evidenced by their record trading volumes and strategic advances. Looking ahead into 2025, the firm is poised to maintain momentum through continuous innovation and enhanced client offerings.

Frequently Asked Questions

What was the total ADV reported by MarketAxess for December 2024?

The total ADV for December 2024 was $32.0 billion, showing a 19% increase compared to the previous year.

How did the high-grade credit ADV perform in December 2024?

The U.S. high-grade ADV decreased by 3% year-over-year to $5.9 billion, down 9% compared to November 2024.

What was the record total ADV for Q4 2024?

The record total ADV for Q4 2024 was $41.0 billion, a 38% increase compared to the previous year.

What factors influenced the decline in variable transaction fees?

The decline in variable transaction fees was primarily due to changes in product mix and increased portfolio trading activity.

How is MarketAxess positioned for future growth?

MarketAxess plans to capitalize on their momentum by focusing on product innovation and enhancing their offerings to clients in the upcoming year.

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