MarketAxess reports January total ADV up 6.9% y-o-y

MarketAxess announced monthly trading volume and preliminary variable transaction fees per million – FPM – for January 2024. Highlights include: total credit average daily trading volume, or ADV, of $15.0B, up 6.9% vs. prior year. U.S. high-grade ADV of $7.5B, up 20.2% from the prior year. Estimated market share of 19.1%, down slighly from 19.5% in the prior year. U.S. high-yield ADV of $1.4B, down 25.4% vs. the prior year. Estimated market share of 13.0%, down from 16.8% in the prior year. U.S. high-yield estimated market ADV decreased 3.8% versus the prior year. The decrease in U.S. high-yield estimated market share year-over-year was driven was driven, in part, by lower levels of credit spread volatility, a greater focus on the new issue calendar by long-only client segment, and a higher mix of lower-rated bonds in U.S. high-yield TRACE market volumes, which are less likely to trade on electronic platforms. Lower levels of credit spread volatility drove an estimated 34.5% decrease in ETF market maker client activity on the platform. Record emerging markets ADV of $3.7 billion, up 8.2%. The year-over-year increase was driven by record hard currency trading volume, up 12.4%, and 18.2% growth in local currency markets trading volume. Eurobonds ADV of $1.9 billion, up 0.5%. Municipal bond ADV of $405M, down 21.5% with estimated market ADV down 26.1%. Estimated market share of 6.2%, up from 6.0% in the prior year. Record $18.3B in total portfolio trading volume, up 88.4% from January 2023, and up 35.9% from December 2023 levels. 35% Open Trading share of total credit trading volume, in line with the prior year. Total Rates ADV of $16.9 billion, down 25.1%. The preliminary FPM for total credit for January 2024 was approximately $156, down from $160 in the prior year, but in line with the $156 reported for 4Q23. The decline in total credit FPM compared to the prior year was due principally to product and protocol mix shift. The preliminary FPM for total rates was $5.30, compared to $4.19 in the prior year.