In a month marked by significant activity in fixed-income markets, MarketAxess delivered an impressive performance with a 56% increase in average daily trading volume (ADV) year-over-year. Other segments like emerging markets and municipal bonds hit record highs, as the US Treasury trading volumes rebounded sharply.

However, the company faced challenges in US high-yield activity, highlighting a dynamic and shifting landscape. The company attributed this rebound to a robust market environment and an ongoing focus on enhancing platform capabilities.

US Treasuries

US Treasury ADV soared to $30.7 billion in November, more than doubling compared to the previous year. According to the company, this remarkable growth highlighted a recovery in rates trading despite slight declines from October’s record numbers.

Credit trading registered a mixed performance in November. While US high-grade trading remained stable compared to the prior year, high-yield Yield A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a A yield is defined as the earnings generated by an investment or security over a particular time period. This is in typically displayed in percentage terms and is in the form of interest or dividends received from it.Yields do not include the price variations, which differentiates it from the total return. As such, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as a Read this Term activity dropped 31%. The decrease was attributed 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, affecting trading momentum in that segment.

Commenting about the performance, Chris Concannon, the CEO of MarketAxess, said: "We recently launched our block trading solution, and we are experiencing positive client engagement in the emerging markets hard currency market."

"21 dealers and 26 long-only clients were active with the average trade size executed over $4 million notional. We have also enhanced our portfolio trading functionality to include benchmark trading and a record 76% of portfolio trading volume was executed on X-Pro."

On the other hand, emerging markets demonstrated resilience, with ADV reaching a record $3.8 billion, reflecting a 15% year-over-year increase. Municipal bonds also posted gains, with ADV climbing 5% to $631 million.

US Credit Markets

MarketAxess’s investment in advanced trading protocols and tools also performed well in November. Its portfolio trading functionality, enhanced with benchmark trading, saw 76% of its trading volume executed on the X-Pro platform, a new record.

These initiatives aim to boost the company’s market share in US credit markets. Despite the strong trading volumes, preliminary variable transaction fees per million dropped year-over-year due to product mix changes, particularly in US high-yield activity.

Total credit FPM declined to $146 in November, down from $157 a year earlier. Rates FPM also dipped to $4.07, reflecting broader shifts in trading behavior.