MarketAxess Registers Record Levels of Market Share During Q2 2022

MarketAxess Holdings Inc., the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, today announced financial results for the second quarter of 2022.

Rick McVey, Chairman of the Board and CEO of MarketAxess, commented: “Record levels of market share in the quarter reflect the strides that we have made over the past year in executing our growth strategy, expanding our geographic diversification and establishing a broader global foundation for growth.
The macro backdrop is now much improved, with credit spreads and credit spread volatility moving back into more historical ranges, driving increased estimated cost savings for clients through Open Trading®, our unique liquidity pool.
We believe that our strong growth in trading volume, broad-based market share gains, both year-over-year and sequentially, and increasing momentum in new product areas, including U.S. Treasuries and municipal bonds, are driving our improved performance.”

2Q22 Financial and operational highlights

• Record levels of estimated market share driving strong growth in trading volume.

• Record composite corporate bond estimated market share of 20.2%, up from 17.8%, reflecting broad-based estimated market share gains across global credit.

• Record estimated combined U.S. high-grade and U.S. high-yield market share of 20.9%, up from 19.1% in the prior year.

• Record estimated market share across U.S. high-yield, emerging markets, Eurobonds and U.S. Treasuries.

• Revenues of $182.2 million, up 3%.

• Total expenses of $97.4 million, up 9% on continued investment in the business.

• $105.2 million in EBITDA and EBITDA margin of 57.7%, up from 56.3%.

• Diluted EPS of $1.78, includes an $0.11 per share benefit from foreign currency transaction gains.

• Declared $0.70 per share dividend; repurchased 178,801 shares for a total cost of $48.7 million.

• Record 1,935 total active clients, up 5%, reflecting the continued expansion of its global liquidity pool.

• Total trading average daily volume (“ADV”) of $35.4 billion, up 43%, driven principally by a 64% increase in U.S. Treasury ADV to $22.7 billion and a 15% increase in total credit ADV to $12.3 billion.

• Record $23 billion in portfolio trading volume, up from $4 billion in 2Q21 and $14 billion in 1Q22.