MarketAxess reports December total trading average daily volume up 27% y-o-y

MarketAxess announced monthly trading volume for December 2022 and preliminary variable transaction fees per million for December and the quarter ended December 31. The company reported a 27% increase in total credit ADV to $10.6B, driven by a 26% increase in U.S. high-grade ADV and record estimated market share across high-yield, emerging markets, Eurobonds and municipals. Open Trading estimated price improvement was approximately $79M in December and average estimated price improvement per million was approximately $1,042. For FY22, estimated price improvement was approximately $946M, 65% above the prior year. Record 22.8% – +140 bps – composite corporate bond estimated market share, up from 21.4%; 26% increase in U.S. high-grade ADV to $5.1B with estimated market share of 23.4%. Estimated U.S. high-grade TRACE market ADV increased 27%. 25% increase in U.S. high-yield ADV to $1.6B with record estimated market share of 21.4%, up from 18.3%. Emerging markets ADV of $2.1B, down slightly; flat excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%. 38% of total credit trading volume was executed via Open Trading, up from 36%. The preliminary FPM for total credit for December was $165, compared to $163 in November. For Q4, reported a 24% increase in total credit ADV to $12.0B, record 20.9% – +210 bps – composite corporate bond estimated market share, up from 18.8%; a 22% increase in U.S. high-grade ADV to $5.5B with estimated market share of 21.1%; estimated U.S. high-grade TRACE market ADV increased 23%; record U.S. high-yield estimated market share of 20.5% – +500 bps -, up from 15.5%, on ADV of $1.8 billion, representing an increase of 33%; emerging markets ADV of $2.7B, up 3%; up approximately 5% excluding the impact of foreign currency fluctuations. Emerging markets market volumes down 22%. Record 38% of total credit trading volume was executed via Open Trading, up from 36% in the prior year. Record $31B in portfolio trading volume, up from $13B in 4Q21, and $25B in 3Q22. The preliminary FPM for total credit for the quarter was $164.0, compared to $165.6 in 3Q22. The preliminary FPM for total rates for the quarter was $4.10.