MarketAxess Reports 33% Increase in June Average Daily Volumes

Wednesday, 03/07/2024 | 12:48 GMT by Jared Kirui

The US high-grade credit segment led the growth with a 17% increase in ADV to $6.6 billion.

Emerging markets also posted positive growth, with ADV climbing 17.9% to $3.6 billion.

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 , 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.

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 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.