MarketAxess Reports Record Trading ADV of $37.5 Billion in Q1 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, has announced financial results for the first quarter of 2022.
1Q22 Financial and operational highlights
Revenues of $186.1 million; second highest level ever of quarterly revenue; record U.S. Treasury, emerging markets and municipal bond revenue.
Total expenses of $98.0 million, up 7% on continued investment; up 5%, excluding acquired intangible amortization.
$105.8 million in EBITDA and EBITDA margin of 56.8%.
Diluted EPS of $1.71 includes a net $0.02 per share negative impact from tax and other, net special items; Company reconfirms full-year 2022 effective tax rate guidance range of 24.0% to 26.0%.
Declared $0.70 per share dividend; repurchased 101,514 shares for a total cost of $38.8 million.
Record total trading average daily volume (ADV) of $37.5 billion, up 22%, driven principally by record U.S. Treasury ADV of $25.1 billion; credit ADV of $12.0 billion, with record emerging markets ADV of $3.1 billion and record municipal bond ADV of $288 million.
Estimated combined U.S. high-grade and high-yield market share of 19.1%, in line with the prior year; approximately 92% of credit volume on the platform was executed by institutional clients.
Record $14 billion in portfolio trading volume.
"Record trading volumes this quarter surpassed pandemic level highs, driven principally by strong sequential improvement in credit and record U.S. Treasury volumes. This strong performance reflects the excellent strides we have made in executing our growth strategy, expanding our geographic diversification and establishing a broader foundation for growth,"said Rick McVey, chairman and CEO of MarketAxess.
"We have delivered these results as market conditions continue to improve, with wider spreads and increased spread volatility driving significant cost savings for our clients through Open Trading, our differentiated liquidity pool. We believe we are well positioned to capture the global e-trading opportunity ahead of us due to our expanded global product footprint, improving market conditions and our continued focus on trading automation and all-to-all trading."
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