Business
MarketAxess Reports Fourth Quarter and Full Year 2023 Results
NEW YORK--(BUSINESS WIRE)-- MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities,
About this update from Marketaxess Holdings, Inc.
[{"type":"text","content":" NEW YORK--(BUSINESS WIRE)--\nMarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for fixed-income securities, today announced financial results for the fourth quarter and full year ended December 31, 2023.\n\n\n4Q23 select financial and operational highlights*\n\n\n\nTotal revenues of $197.2 million, up 10.9%, includes Pragma revenues of $7.6 million and an increase of $1.8 million from the impact of foreign currency fluctuations.\n\n\n\nTotal expenses of $120.2 million, up 19.9%, includes Pragma operating expenses of $8.7 million, acquisition-related expenses and costs associated with efficiency initiatives of $2.4 million and an increase of $1.7 million from the impact of foreign currency fluctuations.\n\n\n\n16.5% increase in diluted EPS to $1.84 on net income of $69.6 million, up from diluted EPS of $1.58 on net income of $59.2 million in the prior year. The current quarter includes a benefit to earnings in the provision for income taxes from return-to-provision adjustments and the purchase of transferable tax credits by the Company.\n\n\n\nRecord information services revenue of $11.9 million, up 14.6%, and record post-trade revenue of $11.0 million, up 24.1%. Information services and post-trade revenues include increases from the impact of foreign currency fluctuations of $0.4 million and $0.6 million, respectively.\n\n\n\nStrong geographic and product diversification with a 10.8% increase in average daily volume (“ADV”) from international products (emerging markets and Eurobonds); record portfolio trading volume of $41.8 billion, up 35.8%, and 7.8% growth in municipal bonds on record ADV, with a record $23.7 billion in tax-exempt trading volume.\n\n\n\n30.3% of eligible portfolio trading volume was executed over MarketAxess X-Pro, up from 18.2% in 3Q23, as client engagement with the new platform continues to grow.\n\n\n\nRecord automated and algorithmic trading volume (+40.3%), trade count (+41.3%) and active client firms (+36.0%); record level of algorithmic responses (+40.0%).\n\n\n\nRecord 2,108 (+2.1%) active client firms, record 1,638 (+3.7%) active U.S. credit client firms; 1,053 (+2.3%) international active client firms and record 1,167 (+6.6%) active client firms trading three or more products.\n\n\n\n36% total credit Open Trading® share,1 down from 38% in the prior year...