MarketAxess Hits All-Time High with $303B Credit Trading Volume in November

<p>MarketAxess, a prominent operator of an electronic
trading platform for fixed-income securities, has released the data for its
trading volume for November. The reported figures revealed a total credit
trading volume of $303.3 billion, marking a historic high for the company. </p><p>Among the notable achievements are that Eurobonds
trading volume reached an unprecedented $43.7 billion, and municipal bond
trading volume surged to a record $12.6 billion.</p><p>Record Credit Trading and Promising Growth Signals</p><p>Chris Concannon, the CEO of <a href="https://www.financemagnates.com/tag/marketaxess/" target="_blank" rel="follow">MarketAxess</a>, mentioned:
"We delivered record total credit trading volume in November, driven by
strong growth across all credit products. The adoption of MarketAxess X-Pro
continues to expand, with 30% of our portfolio trading volume executed over the
X-Pro platform quarter-to-date, up from 18% in the third quarter of 2023."
</p><p>"We believe that the continued improvement in
the market backdrop and the high levels of client engagement with X-Pro, our
unique proprietary data products, and our automated trading solutions position
us for growth in the coming quarters."</p><p>The total credit average daily trading volume
reached $14.3 billion, demonstrating a notable increase of 9.3% compared to the
prior year and a substantial surge of 13.4% compared to October 2023. US
high-grade and high-<a href="https://www.financemagnates.com/terms/y/yield/">yield</a> ADV experienced substantial upticks.</p><p>Additionally, emerging markets ADV saw a significant
rise of 7.6% from the prior year, primarily attributed to increased trading
volume in local currency markets. Eurobonds and municipal bonds also
experienced a substantial upswing in ADV, reflecting growing market activity in
these segments.</p><p>MarketAxess Boosts Financial Performance in Q3</p><p>In October, MarketAxess <a href="https://www.financemagnates.com/institutional-forex/marketaxess-reports-q3-earnings-lower-income-record-volume/" target="_blank" rel="follow">released its financial results for the third quarter</a>. While the company maintained stable revenue at
$172.3 million, it experienced a notable decrease in operating income to $66.9
million, attributed to a surge of 10% in total expenses. Despite this, MarketAxess
celebrated achieving a record automated trading volume and expanded its active
client base.</p><p>The company's active client base reached a new high
of 2,093 firms, reflecting an improvement of 6.1%. This included a significant rise in
both active US credit client firms and international active client firms.</p><p>MarketAxess, while facing challenges due to low
credit spread <a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a> and increased expenses, revised its full-year 2023
expense guidance. The firm expects a lower effective tax rate and positive
trends for the remainder of the year.</p><p>In May, Bloomberg, MarketAxess, and Tradeweb <a href="https://www.financemagnates.com/institutional-forex/bloomberg-marketaxess-and-tradeweb-join-forces-to-provide-trade-data/" target="_blank" rel="follow">teamed up to establish a joint venture</a> to operate a consolidated tape provider for
fixed-income instruments within the European Union region. This collaboration
marked a pivotal moment in the effort to enhance transparency and promote
electronification in the fixed-income industry.</p>

This article was written by Jared Kirui at www.financemagnates.com.