MarketAxess reported a substantial increase in trading volumes for June, driven by notable gains in US high-grade credit, emerging markets, and municipal bonds. The company achieved an average daily volume (ADV) of $36.5 billion, a 33.8% increase from the previous year and a 13.5% rise from May 2024.

Impressive Monthly Performance

This growth was bolstered by strong performances in total credit ADV, which rose to $14.0 billion, and a significant 49.8% increase in total rates ADV. The firm’s trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term, X-Pro, reported a boost in activity, specifically in the fixed-income securities market.

X-Pro platform reportedly posted a record usage, with 56% of portfolio trading volume executed on it during the quarter. Total portfolio trading volume reached $16.6 billion, marking a 104.6% year-over-year increase. The open trading share of total credit trading volume remained steady at 34%.

The US high-grade credit segment led the charge with a 17% increase in ADV to $6.6 billion. Chris Concannon, the CEO of MarketAxes, highlighted that this growth was accompanied by an improvement in market share, reaching an estimated 19.9% in June. Despite a slight year-over-year decline, the month-over-month performance showed positive momentum, indicating a strong market presence.

Today we announced fully-electronic trading volume for June and Second Quarter 2024. Read the full press release here: https://t.co/oJkttKx1Y7
#FixedIncome #ElectronicTrading #Volumes pic.twitter.com/EVURcyNo6m

— MarketAxess (@MarketAxess) July 3, 2024

However, US high-yield ADV experienced a decline of 13.8% to $1.3 billion, with market share dropping to 13.9%. This segment faced challenges reportedly due to lower credit spread volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term and a focus on new issuances by long-only clients. Nonetheless, the estimated market share slightly improved from May 2024.

Besides that, emerging markets displayed robust growth, with ADV climbing 17.9% to $3.6 billion. Contributions from regions like LATAM, EMEA, and APAC were significant, driven by a 25.1% increase in hard currency ADV and record local currency market volumes.

Emerging Markets and Eurobonds

Eurobonds also performed well, with ADV up 16.1% year-over-year, despite an 11.5% decrease from May 2024. The diverse credit offerings continue to attract substantial trading activity. Municipal bonds experienced a notable 48.4% increase in ADV to $549 million.

For the second quarter, MarketAxess reported a total ADV of $34.2 billion, driven by a 22.8% increase from the previous year. The total credit ADV grew by 12.4%, while total rates ADV saw a 30.9% rise. The quarter also featured record performances in portfolio trading volumes and continued strength in emerging markets and municipal bonds.