MarketAxess Reports $186 Million in Revenues for Q1 2022

Nasdaq-listed MarketAxess Holdings released its financial results today for the first quarter of 2022 (Q1 2022). During the recent quarter, the operator witnessed its second-highest quarterly revenue as the number reached $186.1 million.

The growth was driven by record US Treasury, emerging markets and municipal bond revenue. The company reported a diluted EPS of $1.71 for the first quarter of 2022. EBITDA stood at $105.8 million. EBITDA margin reached 56.8%.

MarketAxess witnessed total expenses of $98 million in the recent quarter. Additionally, the operator delivered $201 million in estimated transaction cost savings for clients through Open Trading.

Commenting on the recent results, Rick McVey, the Chairman and CEO of MarketAxess, said: “Record trading volumes this quarter surpassed pandemic level highs, driven principally by strong sequential improvement in credit and record U.S. Treasury volumes. This strong performance reflects the excellent strides we have made in executing our growth strategy, expanding our geographic diversification and establishing a broader foundation for growth.”

The company posted a record $14 billion in portfolio trading volume in Q1 2022 while the total average daily volume (ADV) reached $37.5 billion.

Market Conditions

After recent challenges, global trading volumes have started to pick up amid suitable market conditions. Compared to the fourth quarter of 2021, MarketAxess saw decent growth across revenues, net income and diluted EPS.

“We have delivered these results as market conditions continue to improve, with wider spreads and increased spread volatility driving significant cost savings for our clients through Open Trading, our differentiated liquidity pool. We believe we are well-positioned to capture the global e-trading opportunity ahead of us due to our expanded global product footprint, improving market conditions, and our continued focus on trading automation and all-to-all trading,” McVey added.

In October 2021, MarketAxess announced the expansion of its team through the appointment of Kathryn Sweeney as Head of Index and ETF Solutions.