MarketAxess Reports Second Quarter 2023 Results

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 second quarter ended June 30, 2023.\n\n\n2Q23 select financial and operational highlights*\n\n\n\n$179.8 million in total revenues, down 1.3%, reflects impact of low credit spread volatility.\n\n\n4.0% growth in total revenues year-to-date to $383.0 million compared to the prior year.\n\n\n\n\n\n\n6.9% increase in total expenses, driven principally by investments to capture the long-term revenue opportunity in the global fixed-income markets; $75.7 million in operating income.\n\n\n\nDiluted EPS of $1.59 on net income of $59.9 million. Foreign currency transaction losses and unrealized losses on investments had a $0.04 per diluted share negative impact in the current quarter. The prior year quarter included a net $0.11 per diluted share positive impact from foreign currency transaction gains.\n\n\n\nRecord emerging markets estimated market share1; 10.7% increase in emerging markets local markets trading volume in the quarter driven by a record $31.2 billion in the month of June.\n\n\n\nRecord Eurobonds average daily volume (“ADV”) of $1.9 billion, record estimated market share2 of 18.4% (+330 bps); Municipal bonds estimated market share of 5.8% (+190 bps).\n\n\n\nRecord information services revenue of $11.7 million, up 24.0%, reflecting increasing adoption of Composite+™, our algorithmic pricing engine.\n\n\n\nRecord 2,083 (+7.6%) active client firms, record 1,606 (+11.1%) active U.S. credit client firms; record 1,054 (+7.3%) international active client firms and record 1,127 (+6.7%) active client firms trading three or more products.\n\n\n\n39.5% growth in hedge fund client trading volume and 29.0% growth in private bank client trading volume reflecting increasing contribution from new client segments.\n\n\n\nRecord automation trading volume (+26.8%), trade count (+38.1%) and active client firms (+20.7%); record level of algorithmic responses on the platform (+30.7%). Record U.S. high-grade automation trading volume of $41.3 billion in the quarter, up 11.8% versus the prior year.\n\n\n\n34% total credit Open Trading® share3 in line with the prior year. Estimated price improvement4 via Open Trading was approximately $157 million and wa...

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