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MarketAxess had Record ADV in Fourth Quarter
- MarketAxess, a leading electronic trading platform for fixed-income securities, announced that it delivered record total trading average daily volume (ADV) of $32bn in December 2024 and in 4Q24. The trading was driven by strong growth in most of its product areas including a 16% growth YoY in international products, 18% growth in emerging markets YoY, record ADV in municipal bonds YoY and record total rates ADV YoY.
- In December, U.S. high-grade ADV was $5.9bn and deceased by 9% compared to November 2024, while U.S. high-yield ADV was $1.2bn and decreased by 22% compared to November 2024. Total average daily volume of $32.0bn in December 2024 increased 19% compared to the prior year but decreased 29% compared to November 2024 levels. Total credit ADV of $12.3bn was in line with the prior year but decreased 14% compared to November 2024.
- Record municipal bond ADV comes up to $656m, estimated market ADV increased 26% compared to the prior year, and estimated market share was 6.8%, up from 6.3% in the prior year, and up slightly from 6.7% in November 2024. Estimated market share of US high-grade and US high-yield TRACE portfolio trading was 16.7% in December 2024, up from 13.6% in November 2024. Portfolio trading represented approximately 13% of US high-grade and US high-yield TRACE in December 2024.
- MarketAxess has stated that it is in the process of adding new enhancements in Q1 2025 that could improve its market share in the coming quarters. Among other things, it also said that it has gained traction with its block trading solution, which was launched in the fourth quarter in emerging markets and Eurobonds. Block trades in emerging markets on the platform increased 17% in 4Q24 compared to the prior year, with the average block trade size increasing to $13m.
- The decline in total credit FPM year-over-year was due to protocol and product mix, principally by the lower Open Trading share of US high-grade, an increase in portfolio trading activity, and lower levels of US high-yield activity. Markets Axess' preliminary FPM for total credit for December 2024 was approximately $148, down from $159 in the prior year but up from $146 in November 2024. The preliminary FPM for total rates for December 2024 was approximately $4.14, down from $4.61 in the prior year but up from $4.07 in November 2024.
- In 4Q24, the total ADV of $41.0bn increased 38% compared to the prior year and increased 1% compared to 3Q24 levels, driven by total rates ADV of $27.1bn, which increased 64% compared to the prior year, and increased 3% compared to 3Q24 levels. U.S. high-grade ADV of $6.5bn increased 4% compared to the prior year, but decreased 8% compared to 3Q24. U.S. high-yield ADV of $1.3bn decreased 19% compared to the prior year, but increased 5% compared to 3Q24.
- Emerging markets ADV of $3.5bn increased 18% compared to the prior year and increased 4% compared to 3Q24. Eurobonds ADV of $2.0bn increased 13% compared to the prior year and increased 6% compared to 3Q24. Record municipal bond ADV of $620m increased 15% compared to the prior year and increased 7% compared to 3Q24.
- MarketAxess achieved record average daily volume ($32bn) in December 2024 driven by strong growth across most product areas. The company has gained traction with X-Pro, its high touch strategy focused on portfolio trading and block trading. A record 77% of portfolio trades were executed over X-Pro in December 2024. In addition to this, the company is in the process of adding new enhancements in Q1 2025 to improve its market share.
- Portfolio trading ADV increased 48% YoY to a total of $1.0bn, while total portfolio trading ADV increased 57% compared to the prior year to a total of $1.1bn. The open trading trading share was at 35%, and AxessIQ achieved record ADV of $147m.
- During 4Q24, the total ADV of $41.0bn increased 38% compared to the prior year, and increased 1% compared to 3Q24 levels. The preliminary FPM for total credit for 4Q24 was approximately $150, down from $156 in the prior year, but up slightly from $149 in 3Q24.
- The company stated that the preliminary FPM for total rates for 4Q24 was approximately $4.30, down from $4.62 in the prior year, but up from $4.15 in 3Q24. U.S. high-grade ADV of $6.5bn increased 4% compared to the prior year, but decreased 8% compared to 3Q24. U.S. high-yield ADV of $1.3bn decreased 19% compared to the prior year, but increased 5% compared to 3Q24.
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