MarketAxess Posts Impressive January Demand, Volume Jumped 24%

US-listed MarketAxess Holdings (Nasdaq: MKTX) has published its demand metrics for January 2022, reporting a total trading volume of $715.7 billion. That figure has increased by 24 percent year-over-year.

MarketAxess is an 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 for fixed-income securities. Additionally, it provides market data and post-trade services for the global fixed-income markets. Out of the total reported volume, $239.3 billion was generated from credits and $476.3 billion came from rates volume. While demand for rates trading jumped by 41 percent, credits witnessed a downfall of 8 percent.

Institutions Dominated

In addition, the platform detailed that 91 percent of the credit volume came from institutional trading Institutional Trading Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance compa Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance compa Read this Term, whereas the rest came from dealer-to-dealer transactions.

Further, MarketAxess executed an estimated average of $270 million in portfolio trades last month, compared to the $208 million per day execution rate in the fourth quarter of 2021.

“We registered our second-highest month of total trading volume ever in January, with several notable highlights,” Rick McVey, the Chairman and CEO of MarketAxess, said.

“U.S. Credit trading activity rebounded nicely in January after three straight quarters of low credit market volatility, and Emerging Market ADV reached a new monthly record of $3.1 billion. U.S. Treasury volumes grew 40% year-over-year with an expansion of our Rates active client base. We are seeing promising signs of volatility beginning to pick-up in global fixed income markets, creating increased demand for our Open Trading liquidity solutions.”

Meanwhile, the company is poised to strengthen its leadership. It onboarded Kathryn Sweeney last October as the Head of Index and ETF Solutions following the addition of Charles Li to its board.

Over the recent years, MarketAxess has expanded its footprint with the acquisition of MuniBrokers and LiquidityEdge.