MarketAxess reports Q1 trading volume up 9.2% year-over-year

MarketAxess reported trading volume and preliminary variable transaction fees per million – FPM – for March and Q1 2024. Record total credit average daily trading volume or ADV was $15.0B, up 9.2%. Preliminary FPM for total credit for 1Q24 was approximately $154 vs. $165 in the prior year, and $156 in 4Q23. The decline in total credit FPM compared to the prior year was due principally to product mix shift. The preliminary FPM for total rates was approximately $4.70 vs. $4.12 in the prior year. Record U.S. high-grade ADV of $7.5B, up 18.0% on a 21.3% increase in estimated market ADV. Estimated market share of 19.3%, down from 19.9% in the prior year. U.S. high-yield ADV of $1.4B, down 29.4%. Estimated market share of 12.9%, down from 18.3% in the prior year. U.S. high-yield estimated market ADV increased 0.5%. CEO Chris Concannon commented: “In Q1, we delivered record total credit ADV of $15.0B, driven by an 18.0% increase in U.S. high-grade ADV, a 17.3% increase in emerging markets ADV and a 10.6% increase in Eurobonds ADV. Record levels of ADV across these product areas helped offset significantly lower levels of U.S. high-yield trading activity on the platform, driven by continued low levels of credit spread volatility. The roll-out of MarketAxess X-Pro is continuing and client engagement is increasing with approximately 12.5% of U.S. credit trading volume executed on X-Pro in the quarter.”