MarketAxess Holdings, the operator of a leading electronic trading platform for fixed-income securities, announced trading volume and preliminary variable transaction fees per million (“FPM”) for December 2024 and the fourth quarter ended December 31, 2024.¹

Chris Concannon, CEO of MarketAxess, commented:

“In the fourth quarter, we delivered record total trading ADV, driven by strong growth across most product areas, including 16% growth year-over-year in our international products, record ADV in municipal bonds and record total rates ADV. Emerging markets ADV increased 18% compared to the prior year to the second highest level of quarterly trading ADV ever. We delivered these strong results to finish the year as we continue to execute our high-touch strategy, focused on portfolio trading and block trading. A record 77% of portfolio trades were executed on X-Pro in December and we are continuing to gain traction with our block trading solution, which was launched in the fourth quarter in emerging markets and Eurobonds. Block trades in emerging markets on our platform increased 17% in 4Q24 compared to the prior year, with the average block trade size increasing to $13 million. We have additional enhancements coming in the first quarter, which we believe will enhance our market share in the coming quarters.”

Select December 2024 Highlights

• Total average daily volume (“ADV”) of $32.0 billion increased 19% compared to the prior year, but decreased 29% compared to November 2024 levels. The decline in total trading ADV in December compared to November 2024 includes the impact of the normal seasonal slowdown we experience across most product areas in the month. These results were driven by total rates ADV of $19.8 billion, which increased 34% compared to the prior year, but decreased 36% compared to  November 2024. Total credit ADV of $12.3 billion was in line with the prior year, but decreased 14% compared to November 2024.

U.S. Credit²

• U.S. high-grade ADV of $5.9 billion decreased 3% compared to the prior year, and decreased 9% compared to November 2024. Estimated market ADV increased 9% compared to the prior year, but decreased 16% compared to November 2024. Estimated market share was 19.5%, down from 22.1% in the prior year, but up from 18.0% in November 2024. Including the impact of single-dealer portfolio trades, estimated market share was 19.6%, down from 22.1% in the prior year, but up from 18.1% in November 2024.
• U.S. high-yield ADV of $1.2 billion decreased 14% compared to the prior year, and decreased 7% compared to November 2024. Estimated market ADV increased 7% compared to the prior year, but decreased 22% compared to November 2024. Estimated market share was 14.7%, down from 18.2% in the prior year, but up from 12.3% in November 2024. Including the impact of single-dealer portfolio trades, estimated market share was 14.7%, down from 18.3% in the prior year, but up from 12.6% in November 2024.

Other Credit

• Emerging markets ADV of $2.9 billion increased 8% compared to the prior year, but decreased 25% compared to November 2024. The year-over-year increase was driven by a 14% increase in hard currency ADV, and a 2% increase in local currency ADV.
• Eurobonds ADV of $1.6 billion increased 2% compared to the prior year, but decreased 19% compared to November 2024.
• Record municipal bond ADV of $656 million increased 37% compared to the prior year, and increased 4% compared to November 2024. Estimated market ADV increased 26% compared to the prior year, and increased 2% compared to November 2024. Estimated market share was 6.8%, up from 6.3% in the prior year, and up slightly from 6.7% in November 2024.³

Strategic Priority Related Protocols & Workflow Tools

• $1.0 billion in total portfolio trading ADV increased 48% compared to the prior year, and increased 8% compared to November 2024. A record 77% of portfolio trading volume was executed over X-Pro.
  — Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV increased 3% compared to November 2024.
• Our estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 16.7% in December 2024, up from 13.6% in November 2024.
  — Portfolio trading represented approximately 13% of U.S. high-grade and U.S. high-yield TRACE in December 2024, up from 10% in November 2024.
• Open Trading ADV of $3.6 billion decreased 7% compared to the prior year, and decreased 15% compared to November 2024. Open Trading share⁴ of total credit trading volume was 36%, down from 37% in the prior year, but up from 35% in November 2024.
• Dealer RFQ ADV of $1.0 billion across all credit products decreased 5% compared to the prior year, and decreased 23% compared to November 2024.
• AxessIQ, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $135 million, down 9% compared to the prior year, and down 8% compared to November 2024.

Rates

• Total rates ADV of $19.8 billion increased 34% compared to the prior year, but decreased 36% compared to November 2024.

Variable Transaction Fees Per Million (FPM)¹

• The preliminary FPM for total credit for December 2024 was approximately $148, down from $159 in the prior year, but up from $146 in November 2024. The decline in total credit FPM year-over-year was due to protocol and product mix, principally by the lower Open Trading share of U.S. high-grade, an increase in portfolio trading activity and lower levels of U.S. high-yield activity. The increase in total credit FPM month-over-month was due to product mix, principally U.S. high-yield. The preliminary FPM for total rates for December 2024 was approximately $4.14, down from $4.61 in the prior year, but up from $4.07 in November 2024.

Select 4Q24 Highlights

• Record total ADV of $41.0 billion increased 38% compared to the prior year, and increased 1% compared to 3Q24 levels. These results were driven by record total rates ADV of $27.1 billion, which increased 64% compared to the prior year, and increased 3% compared to 3Q24 levels. U.S. Treasury ADV on the platform in 4Q23 was negatively impacted by an outage at ICBC, the third-party the Company was then using for U.S. Treasury settlement services. Total credit ADV of $13.9 billion increased 6% compared to the prior year, but decreased 2% compared to 3Q24.

U.S. Credit²

• U.S. high-grade ADV of $6.5 billion increased 4% compared to the prior year, but decreased 8% compared to 3Q24. Estimated market ADV increased 18% compared to the prior year, but decreased 3% compared to 3Q24. Estimated market share was 18.4%, down from 20.9% in the prior year, and down from 19.5% in 3Q24. Including the impact of single-dealer portfolio trades, estimated market share was 18.8%, down from 21.0% in the prior year, and down from 20.0% in 3Q24.
• U.S. high-yield ADV of $1.3 billion decreased 19% compared to the prior year, but increased 5% compared to 3Q24. Estimated market ADV increased 5% compared to the prior year, and increased 2% compared to 3Q24. Estimated market share was 13.4%, down from 17.2% in the prior year, but up from 13.0% in 3Q24. Including the impact of single-dealer portfolio trades, estimated market share was 13.7%, down from 17.3% in the prior year, but up from 13.4% in 3Q24.

Other Credit

• Emerging markets ADV of $3.5 billion increased 18% compared to the prior year, and increased 4% compared to 3Q24. The year-over-year increase was driven by a 26% increase in hard currency ADV, and a 7% increase in local currency ADV.
• Eurobonds ADV of $2.0 billion increased 13% compared to the prior year, and increased 6% compared to 3Q24.
• Record municipal bond ADV of $620 million increased 15% compared to the prior year, and increased 7% compared to 3Q24. Estimated market ADV decreased 9% compared to the prior year, but increased 32% compared to 3Q24. Estimated market share was 7.1%, up from 5.6% in the prior year, but down from a record 8.7% in 3Q24.³

Strategic Priority Related Protocols & Workflow Tools

• $1.1 billion in total portfolio trading ADV increased 57% compared to the prior year, but decreased 8% compared to 3Q24. A record 71% of portfolio trading volume was executed over X-Pro.
  — Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV was flat compared to 3Q24.
• Our estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 16.2%, down from 20.0% in 3Q24.
  — Portfolio trading represented approximately 11% of U.S. high-grade and U.S. high-yield TRACE in 4Q24, in line with 3Q24.
• Open Trading ADV of $4.1 billion increased 2% compared to the prior year, and was in line with 3Q24. Open Trading share⁴ of total credit trading volume was 35%, down from 36% in the prior year, but in line with 3Q24 levels.
• Dealer RFQ ADV of $1.2 billion across all credit products increased 8% compared to the prior year, and increased 5% compared to 3Q24.
• AxessIQ achieved record ADV of $147 million, up 6% compared to the prior year, and up 14% compared to 3Q24.

Rates

• Record total rates ADV of $27.1 billion increased 64% compared to the prior year, and increased 3% compared to 3Q24. U.S. Treasury ADV on the platform in November 2023 was negatively impacted by an outage at ICBC, the third-party the Company was then using for U.S. Treasury settlement services.

Variable Transaction Fees Per Million (FPM)¹

• The preliminary FPM for total credit for 4Q24 was approximately $150, down from $156 in the prior year, but up slightly from $149 in 3Q24. The decline in total credit FPM year-over-year was due to product mix, principally lower levels of U.S. high-yield activity. The increase in total credit FPM quarter-over-quarter was due to product mix, principally U.S. high-yield. The preliminary FPM for total rates for 4Q24 was approximately $4.30, down from $4.62 in the prior year, but up from $4.15 in 3Q24.

Table 1: December 2024 ADV

			CREDIT							RATES
$ in millions (unaudited)	US/UK Trading Days5	Total ADV	Total Credit	High-Grade	High-Yield	Emerging Markets	Eurobonds	Municipal Bonds	Total Rates	US Govt. Bonds	Agcy./Other Govt. Bonds
Dec-24	21/20	$32,037	$12,285	$5,921	$1,219	$2,869	$1,619	$656	$19,752	$18,735	$1,017
Nov-24	19/21	$44,945	$14,291	$6,533	$1,312	$3,811	$2,001	$631	$30,654	$29,325	$1,329
Dec-23	20/19	$26,994	$12,262	$6,133	$1,412	$2,649	$1,580	$480	$14,732	$14,380	$352
YoY % Change		19%	–	(3%)	(14%)	8%	2%	37%	34%	30%	189%
MoM % Change		(29%)	(14%)	(9%)	(7%)	(25%)	(19%)	4%	(36%)	(36%)	(23%)

Table 1A: December 2024 estimated market share

	CREDIT				RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High-Yield Combined	Municipals3	US Govt. Bonds3
Dec-24	19.5%	14.7%	18.5%	6.8%	2.3%
Nov-24	18.0%	12.3%	16.7%	6.7%	2.9%
Dec-23	22.1%	18.2%	21.3%	6.3%	1.9%
YoY Bps Change	(260) bps	(350) bps	(280) bps	+50 bps	+40 bps
MoM Bps Change	+150 bps	+240 bps	+180 bps	+10 bps	(60) bps

Table 1B: 4Q24 ADV

			CREDIT							RATES
$ in millions (unaudited)	US/UK Trading Days5	Total ADV	Total Credit	High-Grade	High-Yield	Emerging Markets	Eurobonds	Municipal Bonds	Total Rates	US Govt. Bonds	Agcy./Other Govt. Bonds
4Q24	62/64	$41,030	$13,883	$6,454	$1,345	$3,459	$2,001	$620	$27,147	$25,952	$1,195
3Q24	64/65	$40,516	$14,116	$7,027	$1,278	$3,333	$1,891	$577	$26,400	$25,302	$1,098
4Q23	62/63	$29,641	$13,108	$6,215	$1,653	$2,927	$1,767	$539	$16,533	$16,106	$427
YoY % Change		38%	6%	4%	(19%)	18%	13%	15%	64%	61%	180%
QoQ % Change		1%	(2%)	(8%)	5%	4%	6%	7%	3%	3%	9%

Table 1C: 4Q24 estimated market share

	CREDIT				RATES
(unaudited)	High-Grade	High-Yield	High-Grade/High-Yield Combined	Municipals3	US Govt. Bonds3
4Q24	18.4%	13.4%	17.3%	7.1%	2.8%
3Q24	19.5%	13.0%	18.1%	8.7%	2.6%
4Q23	20.9%	17.2%	20.0%	5.6%	2.0%
YoY Bps Change	(250) bps	(380) bps	(270) bps	+150 bps	+80 bps
QoQ Bps Change	(110) bps	+40 bps	(80) bps	(160) bps	+20 bps

Source: MarketAxess