NEW YORK, 03 Feb. Feb. 20, 2022 (GLOBE NEWSWIRE) — MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic fixed-income trading platform, and provider of market data and post-trade services for Global Fixed Income Markets, today announced monthly trading volume for January 2022 of $715.7 billion, consisting of $239.3 billion in credit volume and $476.3 billion in dollars in rate volume.
“We had our second highest month of total trading volume ever in January, with several notable highlights,” commented Rick McVey, President and CEO of MarketAxess. “U.S. credit trading activity rebounded strongly in January after three consecutive quarters of low credit market volatility, and Emerging Market ADV reached a new monthly high of $3.1 billion. US Treasuries volumes were up 40% year-over-year driven by the expansion of our rates-active client base. We are seeing promising signs of volatility beginning to pick up in global fixed income markets, creating increased demand for our Open Trading liquidity solutions.
Total monthly trading volume increased 24% to $715.7 billion, compared to January 2021, driven by a $137.5 billion, or 41%, increase in interest rate trading volume. $476.3 billion. Total monthly credit transaction volume of $239.3 billion, above January 2021 levels; Estimated combined TRACE volume of US high yield and high yield bonds down 8%. For the month of January, an estimated average of $270 million in wallet transactions were executed per day on the platform, compared to around $208 million per day in the fourth quarter of 2021. Around $218 billion, or 91% , of the credit volume on the platform platform during the month was to institutional investor clients and approximately $21 billion, or 9%, was broker-to-broker.
The estimated high-end market share in the United States was 21.8%, compared to 20.3% the previous year; estimated market volume down 11% year-on-year. The range of premium spreads was 88 basis points to 105 basis points in January 2022, compared to a range of 84 basis points to 92 basis points in January 2021.1 The wider range in January 2022 was mainly due to a increased volatility during the last trading days of the month. .US high yield market share estimated at 15.3%, down slightly from 15.7% a year earlier; estimated market volume down 2% year-on-year. estimated market volume down 6% year-on-year. Eurobond volume of $29.0 billion, down 1% year-over-year; estimated market volume down 6% year-on-year. Municipal bond volume of $5.7 billion increased 193% (up 24% excluding MuniBrokers2 variable commission volume) year-over-year; estimated market volume up 12% year-on-year.
Second-highest monthly U.S. Treasury bond trading volume of $467.0 billion, up 40% year-over-year.
1 Source: Credit Suisse Global Credit Strategy
2 Effective January 1, 2022, following the integration of the MuniBrokers platform, we now include trading volume related to the MuniBrokers Variable Fee in Other Credit Products.
MarketAxess reported volume across all product categories only includes fully electronic trading volume. MarketAxess Trading Volumes, TRACE Reported Volumes, and MarketAxess Post-Trade Volumes are available on the Company’s website at investor.marketaxess.com/volume.cfm
Caution Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including statements about the prospects and growth prospects of the Company and the industry, as well as statements about the future financial and operating performance of the Company. These and other statements regarding future results and events are based on MarketAxess’ current expectations. The Company’s actual results in future periods may differ materially from those currently expected or desired due to a number of risks and uncertainties, including: global economic, political and market factors; risks relating to the COVID-19 pandemic, including the possible effects of global economic conditions resulting from the COVID-19 pandemic; risks associated with the United Kingdom’s exit from the European Union; the volume level of transactions carried out on the MarketAxess platform; the rapidly changing nature of the electronic financial services industry; the level and intensity of competition in the fixed income electronic trading industry and pricing pressures that may result; the variability of our growth rate; our ability to introduce new rate plans and the response of our customers; our ability to attract customers or adapt our technology and marketing strategy to new markets; risks related to our growing international operations; our dependence on our broker clients; the loss of one of our major institutional investor clients; our exposure to risks arising from non-performance by counterparties to transactions executed between our clients in which we act as an intermediary in principal-matched transactions; risks related to self-compensation; the effect of rapid changes in the market or technology on us and users of our technology; our dependence on third-party suppliers for key products and services; our ability to successfully maintain the integrity of our trading platform and our response to system failures, capacity constraints and business interruptions; the occurrence of design flaws, errors, failures or delays with our platforms; our vulnerability to cybersecurity risks; our actual or perceived failure to comply with privacy and data protection laws; our ability to protect our intellectual property rights or technology and defend against intellectual property infringement or other claims; our ability to enter into strategic alliances and acquire other businesses and successfully integrate them into our business; our dependence on our management team and our ability to attract and retain talent; the limits of our flexibility because we operate in a highly regulated industry; increasing government regulation of us and our customers; our exposure to costs and penalties related to our extensive regulation; our risks of litigation and liability under securities laws; our future capital requirements and our ability to obtain capital when needed; limitations on our operational flexibility contained in our credit agreement; and other factors. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Further information about these and other factors affecting MarketAxess’s business and prospects is contained in MarketAxess’s periodic filings with the Securities and Exchange Commission and may be found at www.marketaxess.com.
About Market Axess
MarketAxess operates a leading institutional electronic trading platform providing expanded liquidity opportunities, enhanced quality of execution and significant cost savings in the global fixed income markets. A global network of more than 1,800 firms, including the world’s leading institutional asset managers and brokers, leverages MarketAxess’ patented trading technology to efficiently trade bonds. MarketAxess’ award-winning Open Trading® marketplace is considered the preferred global trading solution in global credit markets, creating a unique pool of liquidity for a wide range of credit market participants. Leveraging its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services. For more information, please visit www.marketaxess.com.
MarketAxess Holdings Inc. Monthly Volume Statistics
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