MarketAxess announced record-breaking trading volumes for February 2024. The electronic trading platform for fixed-income securities reported a total credit average daily volume (ADV) of $15.2 billion, an uptick of 5.1% from the previous year, driven by strong performance across several key sectors.

MarketAxess Hits Record Trading Volumes in February 2024

Record US high-grade ADV of $7.7 billion, an improvement of 14.6% year-over-year (YoY). In emerging markets, ADV escalated 12.5% to $3.6 billion. Eurobonds ADV climbed 9.1% to $2.0 billion. Municipal bonds ADV increased 8.0% YoY to $434 million.

Despite the overall positive results, US high-yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term ADV declined 37.1% to $1.4 billion, attributed to lower credit spread volatility and a greater focus on new issue calendars by long-only clients.

"Strong credit volumes quarter-to-date across several of our growth cylinders have more than offset significantly lower levels of US high-yield trading activity on our platform impacted by continued low levels of credit spread volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term,” said Chris Concannon, the CEO of MarketAxess.

In addition, the company's Open Trading marketplace, widely regarded as the preferred all-to-all trading solution in global credit markets, accounted for 34% of total credit trading volume, a drop from 36% in the prior year.

Record Trading Volumes Drive Strong 2023 Performance

In late January, MarketAxess reported solid financial results for the fourth quarter and full year 2023, driven by higher trading volumes across multiple products and regions.

In the fourth quarter, total revenues rose 10.9% year-over-year to $197.2 million, boosted by the acquisition of Pragma and favorable foreign currency fluctuations. Additionally, net income elevated 18% to $69.6 million, while diluted earnings per share (EPS) grew 16.5% to $1.84.

For the full year 2023, MarketAxess posted an incline of 5% year-over-year in total revenues to $753 million. Net income showed a moderate increase of 3% to $258 million, and diluted EPS grew 3% to $6.85, with results visibly better than the third quarter of 2023.

In late February 2024, the company announced a key executive appointment, naming Ilene Fiszel Bieler as its new Chief Financial Officer, effective around May 2024. Bieler, who will replace Christopher Gerosa, brings extensive experience from her tenures at State Street Global Markets and Barclays, among others.