MarketAxess sees third quarter ADV growth of 32% in credit and 41% in rates

Dan Barnes

MarketAxess saw total average daily volume (ADV) in Q3 2022 increase by 32% over the same period in 2021, with rates ADV up 41% over the same period.

Rick McVey, chairman of the board and CEO of MarketAxess, said, “We delivered another quarter of record market share gains across our expanded product set in the third quarter, driven by increased value for clients from Open Trading liquidity. Our diversified liquidity pool is helping both investor and dealer clients navigate through incredibly difficult and volatile fixed-income trading conditions. The foundation of our business has never been stronger with growing market share in existing as well as new products, an expanded global footprint and record numbers of active clients.

“We believe the growth in both public and private debt around the world, combined with higher interest rates, creates a long runway for growth in fixed income e-trading in the years ahead. We are in a strong position to capitalize on this opportunity due to our significant global institutional client network and our unique capabilities in all-to-all trading.”

The firm saw investment grade ADV up 18% year-on-year (YoY), while high yield was up 25% YoY. Emerging markets (8%) and Eurobonds (7%) posted smaller increases in volume, while the rise in rates trading was almost entirely down to a 42% increase in US Treasuries trading (42%) which the firm estimates gave it a 3.5% market share.

MarketAxess estimated transaction cost savings for clients of US$260 million via Open Trading, the all-to-all trading protocol; with US$699 million in estimated transaction cost savings year-to-date, up 57%. Portfolio tradang saw a reported record of US$25 billion in volume, up from $9 billion in 3Q21 and $23 billion in 2Q22.