MarketAxess Sees Overall Slide in Key Financial Metrics in Q3 2023

MarketAxess Holdings Inc., the operator of a leading electronic trading platform for fixed-income securities, has released its financial results for the third quarter of 2023 (Q3 2023), indicating an overall decline in key financial metrics.

Total revenue for Q3 2023 came in at $172 million, in line with that of Q3 2022, reflecting the impact of low credit spread volatility in the period.

Total credit commission revenue dipped 2% year-over-tear to $145.2million (including $36.2million in fixed-distribution fees). Total rates commission revenue decreased 5% to $5.2million.

Operating income during the period was $67 million, a decline of 12% from the year-ago quarter's $76 million. Net income fell 7% on a yearly basis to $55 million, with diluted EPS down from $1.58 to $1.46.

The quarterly EBITDA experienced a drop of 11% to $83 million, compared to the last same period. EBITDA margin slid from 54.0% to 48.1%.

Total expenses increased 10% to $105.4 million, driven principally by higher employee compensation and benefits as a result of a 17% increase in headcount.

In August, Fazzaco reported that MarketAxess has entered an agreement to take over Pragma​, a quantitative trading technology provider specializing in algorithmic and analytical services in equities, FX and fixed-income. This deal is expected to close in the fourth quarter of the year.