MarketAxess posted a significant increase in trading activity in August, driven by a favorable market environment that boosted both credit and rate trading volumes. The electronic 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 recorded a 39.6% increase in total average daily volume (ADV), reaching $41.6 billion, a notable improvement compared to both the prior year and July 2024.

Credit Trading Surges

The company's portfolio trading, particularly in US high-grade and municipal bonds, contributed to this growth, setting a new record. MarketAxess' total credit ADV experienced a remarkable 27.4% increase year-over-year, with US high-grade trading leading the charge.

US high-grade ADV grew by 33.7%, while emerging markets and municipal bonds also experienced significant boosts of 25.5% and 49.5%, respectively. Despite a slight dip in market share compared to the previous year, MarketAxess regained ground from July, with high-yield bonds showing particular strength, rising 7.2%.

Portfolio trading at MarketAxess reached a record $988 million in August 2024, marking a 125.6% year-over-year increase. The company's estimated market share of US high-grade and high-yield TRACE portfolio trading hit 21.8%, up from 17.2% in July.

Despite a slight decrease in portfolio trading as a percentage of overall trading (down from 10.6% in July to 9.5% in August), the overall growth in this segment was substantial. Open Trading, MarketAxess's all-to-all trading protocol, accounted for 36% of total credit trading volume, up from 34% in the previous year. The Dealer RFQ protocol also performed well, with ADV rising 15% year over year.

Rates Trading

Rates trading also experienced substantial gains, with a total ADV of $28.4 billion in August 2024, representing a 46.1% increase compared to the prior year. This performance was boosted by a 26.9% month-over-month growth, continuing the upward trend for rates products at MarketAxess.

The preliminary variable transaction fees per million total credit were consistent with the prior year at approximately $154 but rose from $143 in July 2024. This increase was primarily attributed to the longer duration of bonds traded in the US high-grade segment. Meanwhile, the FPM for total rates was around $4, slightly down from $4.35 in the previous year.

Last month, MarketAxess reported a 24% increase in total trading volume, boosted by growth in US high-grade and Eurobonds. The electronic trading platform posted record figures in portfolio trading, attributing the performance to some of its initiatives and the potential for future market share expansion.