Bond-market operator MarketAxess has reported having its strongest ever August monthly trading volumes, with US$30.6 billion in total trading average daily volume (ADV), up 44%, driven by a 55% increase in US Treasury ADV to US$20.2 billion and a 27% increase in total credit ADV to US$10.2 billion, reflecting increasing momentum quarter-to-date.
Chris Concannon, president and COO of MarketAxess said, “A 27% year-over-year increase in total credit ADV and a 55% increase in US Treasury ADV led to our best August results on record. Improved credit trading conditions and solid market share gains in our international product areas led to the strong volume growth in August.”
The preliminary average fee per million for total credit was US$168 per million in August, up from US$166 in July and US$166 in the second quarter of 2022. Of that, US investment-grade ADV of US$4.9 billion, up 30% and US high-yield ADV of US$1.5 billion, up 19%. Open Trading represented 37% of total credit trading volume, up from 35% in the prior year, and 91% of credit volume on the platform was executed by institutional clients.
“Open Trading estimated transaction cost savings were a total of US$90 million in August, which equates to approximately US$1,155 per million saved for our clients,” he continued. “Year-to-date estimated transaction cost savings3 are now approximately US$604 million, 49% above the prior year, reflecting the powerful benefits of our unique, all-to-all liquidity pool. The investments we have made to expand our product and geographic diversification are paying off, the benefits of our differentiated liquidity are driving strong cost savings for clients, and our total credit average fee per million is stable. We believe more normal levels of yields and volatility are setting the foundation for stronger growth in the months and quarters ahead.”
Emerging markets ADV of US$2.4 billion, up 14%; with Eurobonds ADV of US$1 billion, representing an increase of 25%; up approximately 43% excluding the impact of foreign currency fluctuations with estimated market ADV down 12%.
Municipal bond ADV was of US$329 million, US$90 million in estimated transaction cost savings3 for clients via Open Trading, up from US$40 million in the prior year, and average cost savings per million of US$1,155.
US$20.2 billion in US Treasury ADV, was up 55%, with 211 active participants on the platform, up from 101 in the prior year.