1<\/sup><\/p>\nChris Concannon, CEO of MarketAxess, commented:<\/b><\/p>\n
\n\u201cIn the fourth quarter, we delivered record<\/b> total trading ADV, driven by strong growth across most product areas, including 16%<\/b> growth year-over-year in our international products, record<\/b> ADV in municipal bonds and record<\/b> total rates ADV. Emerging markets ADV increased 18%<\/b> compared to the prior year to the second highest level<\/b> of quarterly trading ADV ever. We delivered these strong results to finish the year as we continue to execute our high-touch strategy, focused on portfolio trading and block trading. A record 77%<\/b> of portfolio trades were executed on X-Pro in December and we are continuing to gain traction with our block trading solution, which was launched in the fourth quarter in emerging markets and Eurobonds. Block trades in emerging markets on our platform increased 17%<\/b> in 4Q24 compared to the prior year, with the average block trade size increasing to $13 million<\/b>. We have additional enhancements coming in the first quarter, which we believe will enhance our market share in the coming quarters.\u201d<\/p>\n
Select December 2024 Highlights<\/b><\/p>\n\n- \nTotal average daily volume (\u201cADV\u201d) of $32.0 billion<\/b> increased 19% <\/b>compared to the prior year, but decreased 29%<\/b> compared to November 2024 levels. The decline in total trading ADV in December compared to November 2024 includes the impact of the normal seasonal slowdown we experience across most product areas in the month. These results were driven by total rates ADV of $19.8 billion<\/b>, which increased 34% <\/b>compared to the prior year, but decreased 36%<\/b> compared toNovember 2024. Total credit ADV of $12.3 billion<\/b> was in line with the prior year, but decreased 14%<\/b> compared to November 2024.<\/p>\n<\/li>\n<\/ul>\n
U.S. Credit2<\/sup><\/i><\/b><\/p>\n\n- \nU.S. high-grade ADV of $5.9<\/b>billion <\/b>decreased 3% <\/b>compared tothe prior year, and decreased 9% <\/b>compared to November 2024.Estimated market ADV increased 9% <\/b>compared to the prior year, but decreased 16% <\/b>compared to November 2024.Estimated market share was 19.5%<\/b>, down from 22.1%<\/b> in the prior year, but up from 18.0%<\/b> in November 2024. Including the impact of single-dealer portfolio trades<\/b>, estimated market share was 19.6%<\/b>, down from 22.1%<\/b> in the prior year, but up from 18.1%<\/b> in November 2024.<\/p>\n<\/li>\n
- \nU.S. high-yield ADV of $1.2 billion<\/b> decreased 14% <\/b>compared to the prior year, and decreased 7%<\/b> compared to November 2024. Estimated market ADV increased 7% <\/b>compared to the prior year, but decreased 22%<\/b> compared to November 2024. Estimated market share was 14.7%<\/b>, down from 18.2%<\/b> in the prior year, but up from 12.3% <\/b>in November 2024. Including the impact of single-dealer portfolio trades<\/b>, estimated market share was 14.7%<\/b>, down from 18.3%<\/b> in the prior year, but up from 12.6%<\/b> in November 2024.<\/p>\n<\/li>\n<\/ul>\n
Other Credit<\/i><\/b><\/p>\n\n- \nEmerging markets ADV of $2.9 billion<\/b> increased 8% <\/b>compared to the prior year, but decreased 25%<\/b> compared to November 2024. The year-over-year increase was driven by a 14%<\/b> increase in hard currency ADV, and a 2% <\/b>increaseinlocal currency ADV.<\/p>\n<\/li>\n
- \nEurobonds ADVof $1.6 billion<\/b> increased 2% <\/b>compared to the prior year, but decreased 19%<\/b> compared to November 2024.<\/p>\n<\/li>\n
- Record<\/b> municipal bondADV of $656 million<\/b> increased 37% <\/b>compared to the prior year, and increased 4%<\/b> compared to November 2024. Estimated market ADV increased 26% <\/b>compared to the prior year, and increased 2%<\/b> compared to November 2024.Estimated market share was 6.8%<\/b>, up from 6.3%<\/b> in the prior year, and up slightly from 6.7%<\/b> in November 2024.3<\/sup><\/li>\n<\/ul>\n
Strategic Priority Related Protocols & Workflow Tools<\/i><\/b><\/p>\n\n- $1.0 billion <\/b>intotal portfolio trading ADV increased 48%<\/b> compared to the prior year,and increased 8% <\/b>compared to November 2024. A record 77%<\/b> of portfolio trading volume was executed over X-Pro.
\n
\u2014 Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV increased 3%<\/b> compared to November 2024.<\/p>\n<\/li>\n- \nOur estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 16.7%<\/b> in December 2024, up from 13.6%<\/b> in November 2024.
\n
\u2014 Portfolio trading represented approximately 13%<\/b> of U.S. high-grade and U.S. high-yield TRACE in December 2024, up from 10%<\/b> in November 2024.<\/p>\n<\/li>\n- \nOpen Trading ADV of $3.6 billion<\/b> decreased 7%<\/b> compared to the prior year,anddecreased 15%<\/b> compared to November 2024.Open Trading share4<\/sup> of total credit trading volume was 36%<\/b>, down from 37%<\/b> in the prior year, but up from 35%<\/b> in November 2024.<\/p>\n<\/li>\n
- \nDealer RFQ ADV of $1.0 billion <\/b>across all credit products decreased 5% <\/b>compared to the prior year, and decreased 23% <\/b>compared to November 2024.<\/p>\n<\/li>\n
- AxessIQ<\/b>, the order and execution workflow solution designed for wealth management and private banking clients, achieved ADV of $135 million<\/b>, down 9% <\/b>compared to the prior year, and down 8%<\/b> compared to November 2024.\n<\/li>\n<\/ul>\n
Rates<\/i><\/b><\/p>\n\n- \nTotal rates ADV of $19.8 billion<\/b> increased 34% <\/b>compared to the prior year, but decreased 36%<\/b> compared to November 2024.<\/p>\n<\/li>\n<\/ul>\n
Variable Transaction Fees Per Million (FPM)1<\/sup><\/i><\/b><\/p>\n\n- \nThe preliminary FPM for total credit for December 2024 was approximately $148<\/b>, down from $159<\/b> in the prior year, but up from $146<\/b> in November 2024. The decline in total credit FPM year-over-year was due to protocol and product mix, principally by the lower Open Trading share of U.S. high-grade, an increase in portfolio trading activity and lower levels of U.S. high-yield activity. The increase in total credit FPM month-over-month was due to product mix, principally U.S. high-yield. The preliminary FPM for total rates for December 2024 wasapproximately $4.14<\/b>, down from $4.61<\/b> in the prior year, but upfrom $4.07<\/b> in November 2024.<\/p>\n<\/li>\n<\/ul>\n
Select 4Q24 Highlights<\/b><\/p>\n\n- Record<\/b> total ADV of $41.0 billion<\/b> increased 38% <\/b>compared to the prior year, and increased 1%<\/b> compared to 3Q24 levels. These results were driven by record<\/b> total rates ADV of $27.1 billion<\/b>, which increased 64% <\/b>compared to the prior year, and increased 3%<\/b> compared to3Q24 levels. U.S. Treasury ADV on the platform in 4Q23 was negatively impacted by an outage at ICBC, the third-party the Company was then using for U.S. Treasury settlement services. Total credit ADV of $13.9 billion<\/b> increased 6%<\/b> compared to the prior year, but decreased 2%<\/b> compared to 3Q24.\n<\/li>\n<\/ul>\n
U.S. Credit2<\/sup><\/i><\/b><\/p>\n\n- \nU.S. high-grade ADV of $6.5<\/b>billion <\/b>increased 4%<\/b> compared tothe prior year, but decreased 8% <\/b>compared to 3Q24.Estimated market ADV increased 18% <\/b>compared to the prior year, but decreased 3% <\/b>compared to 3Q24.Estimated market share was 18.4%<\/b>, down from 20.9%<\/b> in the prior year, and down from 19.5%<\/b> in 3Q24. Including the impact of single-dealer portfolio trades<\/b>, estimated market share was 18.8%,<\/b> down from 21.0%<\/b> in the prior year, and down from 20.0%<\/b> in 3Q24.<\/p>\n<\/li>\n
- \nU.S. high-yield ADV of $1.3 billion<\/b> decreased 19% <\/b>compared to the prior year, but increased 5%<\/b> compared to 3Q24. Estimated market ADV increased 5% <\/b>compared to the prior year, and increased 2%<\/b> compared to 3Q24. Estimated market share was 13.4%<\/b>, down from 17.2%<\/b> in the prior year, but up from 13.0% <\/b>in 3Q24. Including the impact of single-dealer portfolio trades<\/b>, estimated market share was 13.7%<\/b>, down from 17.3%<\/b> in the prior year, but up from 13.4%<\/b> in 3Q24.<\/p>\n<\/li>\n<\/ul>\n
Other Credit<\/i><\/b><\/p>\n\n- \nEmerging markets ADV of $3.5 billion<\/b> increased 18% <\/b>compared to the prior year, and increased 4%<\/b> compared to 3Q24. The year-over-year increase was driven by a 26%<\/b> increase in hard currency ADV, and a 7% <\/b>increase inlocal currency ADV.<\/p>\n<\/li>\n
- \nEurobonds ADVof $2.0 billion<\/b> increased 13% <\/b>compared to the prior year, and increased 6%<\/b> compared to 3Q24.<\/p>\n<\/li>\n
- Record<\/b> municipal bondADV of $620 million<\/b> increased 15% <\/b>compared to the prior year, and increased 7%<\/b> compared to 3Q24. Estimated market ADV decreased 9% <\/b>compared to the prior year, but increased 32%<\/b> compared to 3Q24.Estimated market share was 7.1%<\/b>, up from 5.6%<\/b> in the prior year, but down from a record<\/b>8.7%<\/b> in 3Q24.3<\/sup><\/li>\n<\/ul>\n
Strategic Priority Related Protocols & Workflow Tools<\/i><\/b><\/p>\n\n- $1.1 billion <\/b>intotal portfolio trading ADV increased 57%<\/b> compared to the prior year,but decreased 8% <\/b>compared to 3Q24. A record 71%<\/b> of portfolio trading volume was executed over X-Pro.
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\u2014 Estimated U.S. high-grade and U.S. high-yield TRACE portfolio trading market ADV was flat compared to 3Q24.<\/p>\n<\/li>\n- \nOur estimated market share of U.S. high-grade and U.S. high-yield TRACE portfolio trading was 16.2%<\/b>, down from 20.0%<\/b> in 3Q24.
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\u2014 Portfolio trading represented approximately 11%<\/b> of U.S. high-grade and U.S. high-yield TRACE in 4Q24, in line with 3Q24.<\/p>\n<\/li>\n- \nOpen Trading ADV of $4.1 billion<\/b> increased 2%<\/b> compared to the prior year,and was in line with3Q24.Open Trading share4<\/sup> of total credit trading volume was 35%<\/b>, down from 36%<\/b> in the prior year, but in line with 3Q24 levels.<\/p>\n<\/li>\n
- \nDealer RFQ ADV of $1.2 billion <\/b>across all credit products increased 8% <\/b>compared to the prior year, and increased 5% <\/b>compared to 3Q24.<\/p>\n<\/li>\n
- AxessIQ<\/b> achieved record<\/b> ADV of $147 million<\/b>, up 6% <\/b>compared to the prior year, and up 14%<\/b> compared to 3Q24.\n<\/li>\n<\/ul>\n
Rates<\/i><\/b><\/p>\n\n- Record<\/b> total rates ADV of $27.1 billion<\/b> increased 64% <\/b>compared to the prior year, and increased 3%<\/b> compared to 3Q24. U.S. Treasury ADV on the platform in November 2023 was negatively impacted by an outage at ICBC, the third-party the Company was then using for U.S. Treasury settlement services.\n<\/li>\n<\/ul>\n
Variable Transaction Fees Per Million (FPM)1<\/sup><\/i><\/b><\/p>\n\n- \nThe preliminary FPM for total credit for 4Q24 was approximately $150<\/b>, down from $156<\/b> in the prior year, but up slightly from $149<\/b> in 3Q24. The decline in total credit FPM year-over-year was due to product mix, principally lower levels of U.S. high-yield activity. The increase in total credit FPM quarter-over-quarter was due to product mix, principally U.S. high-yield. The preliminary FPM for total rates for 4Q24 wasapproximately $4.30<\/b>, down from $4.62<\/b> in the prior year, but up from $4.15<\/b> in 3Q24.<\/p>\n<\/li>\n<\/ul>\n
Table 1: December 2024 ADV<\/b><\/p>\n\n\n | \n | \n | \nCREDIT<\/b><\/td>\n | | \nRATES<\/b><\/td>\n | | <\/tr>\n
\n$ in millions
(unaudited)<\/td>\n | \n US\/UK
\n
Trading Days5<\/sup><\/b><\/p>\n<\/td>\n\n Total
\n
ADV<\/b><\/p>\n<\/td>\n | \n Total
\n
Credit<\/b><\/p>\n<\/td>\n | \n High-Grade<\/b><\/p>\n<\/td>\n | \n High-Yield<\/b><\/p>\n<\/td>\n | \n Emerging
\n
Markets<\/b><\/p>\n<\/td>\n | \n Eurobonds<\/b><\/p>\n<\/td>\n | \n Municipal
\n
Bonds<\/b><\/p>\n<\/td>\n | \n Total
\n
Rates<\/b><\/p>\n<\/td>\n | \n US Govt.
\n
Bonds<\/b><\/p>\n<\/td>\n | \n Agcy.\/Other
\n
Govt. Bonds<\/b><\/p>\n<\/td>\n<\/tr>\n\n| Dec-24<\/b><\/td>\n | \n \n21\/20<\/p>\n<\/td>\n | \n \n$32,037<\/p>\n<\/td>\n | \n \n$12,285<\/p>\n<\/td>\n | \n \n$5,921<\/p>\n<\/td>\n | \n \n$1,219<\/p>\n<\/td>\n | \n \n$2,869<\/p>\n<\/td>\n | \n \n$1,619<\/p>\n<\/td>\n | \n \n$656<\/p>\n<\/td>\n | \n \n$19,752<\/p>\n<\/td>\n | \n \n$18,735<\/p>\n<\/td>\n | \n \n$1,017<\/p>\n<\/td>\n<\/tr>\n | \n| Nov-24<\/b><\/td>\n | \n \n19\/21<\/p>\n<\/td>\n | \n \n$44,945<\/p>\n<\/td>\n | \n \n$14,291<\/p>\n<\/td>\n | \n \n$6,533<\/p>\n<\/td>\n | \n \n$1,312<\/p>\n<\/td>\n | \n \n$3,811<\/p>\n<\/td>\n | \n \n$2,001<\/p>\n<\/td>\n | \n \n$631<\/p>\n<\/td>\n | \n \n$30,654<\/p>\n<\/td>\n | \n \n$29,325<\/p>\n<\/td>\n | \n \n$1,329<\/p>\n<\/td>\n<\/tr>\n | \n| Dec-23<\/b><\/td>\n | \n \n20\/19<\/p>\n<\/td>\n | \n \n$26,994<\/p>\n<\/td>\n | \n \n$12,262<\/p>\n<\/td>\n | \n \n$6,133<\/p>\n<\/td>\n | \n \n$1,412<\/p>\n<\/td>\n | \n \n$2,649<\/p>\n<\/td>\n | \n \n$1,580<\/p>\n<\/td>\n | \n \n$480<\/p>\n<\/td>\n | \n \n$14,732<\/p>\n<\/td>\n | \n \n$14,380<\/p>\n<\/td>\n | \n \n$352<\/p>\n<\/td>\n<\/tr>\n | \n| YoY % Change<\/b><\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n19%<\/p>\n<\/td>\n | \n \n\u2013<\/p>\n<\/td>\n | \n \n(3%)<\/p>\n<\/td>\n | \n \n(14%)<\/p>\n<\/td>\n | \n \n8%<\/p>\n<\/td>\n | \n \n2%<\/p>\n<\/td>\n | \n \n37%<\/p>\n<\/td>\n | \n \n34%<\/p>\n<\/td>\n | \n \n30%<\/p>\n<\/td>\n | \n \n189%<\/p>\n<\/td>\n<\/tr>\n | \n| MoM % Change<\/b><\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n(29%)<\/p>\n<\/td>\n | \n \n(14%)<\/p>\n<\/td>\n | \n \n(9%)<\/p>\n<\/td>\n | \n \n(7%)<\/p>\n<\/td>\n | \n \n(25%)<\/p>\n<\/td>\n | \n \n(19%)<\/p>\n<\/td>\n | \n \n4%<\/p>\n<\/td>\n | \n \n(36%)<\/p>\n<\/td>\n | \n \n(36%)<\/p>\n<\/td>\n | \n \n(23%)<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Table 1A: December 2024 estimated market share<\/b><\/p>\n\n\n | \nCREDIT<\/b><\/td>\n | RATES<\/b><\/td>\n<\/tr>\n\n| (unaudited)<\/td>\n | \n High-Grade<\/b><\/p>\n<\/td>\n | \n High-Yield<\/b><\/p>\n<\/td>\n | \n High-Grade\/High-Yield
\n
Combined<\/b><\/p>\n<\/td>\n | \n Municipals3<\/sup><\/b><\/p>\n<\/td>\n| \n US Govt.
\n
Bonds3<\/sup><\/b><\/p>\n<\/td>\n<\/tr>\n\n| Dec-24<\/b><\/td>\n | \n \n19.5%<\/p>\n<\/td>\n | \n \n14.7%<\/p>\n<\/td>\n | \n \n18.5%<\/p>\n<\/td>\n | \n \n6.8%<\/p>\n<\/td>\n | \n \n2.3%<\/p>\n<\/td>\n<\/tr>\n | \n| Nov-24<\/b><\/td>\n | \n \n18.0%<\/p>\n<\/td>\n | \n \n12.3%<\/p>\n<\/td>\n | \n \n16.7%<\/p>\n<\/td>\n | \n \n6.7%<\/p>\n<\/td>\n | \n \n2.9%<\/p>\n<\/td>\n<\/tr>\n | \n| Dec-23<\/b><\/td>\n | \n \n22.1%<\/p>\n<\/td>\n | \n \n18.2%<\/p>\n<\/td>\n | \n \n21.3%<\/p>\n<\/td>\n | \n \n6.3%<\/p>\n<\/td>\n | \n \n1.9%<\/p>\n<\/td>\n<\/tr>\n | \n| YoY Bps Change<\/b><\/td>\n | \n (260) bps<\/i><\/p>\n<\/td>\n | \n (350) bps<\/i><\/p>\n<\/td>\n | \n (280) bps<\/i><\/p>\n<\/td>\n | \n +50 bps<\/i><\/p>\n<\/td>\n | \n +40 bps<\/i><\/p>\n<\/td>\n<\/tr>\n\n| MoM Bps Change<\/b><\/td>\n | \n +150 bps<\/i><\/p>\n<\/td>\n | \n +240 bps<\/i><\/p>\n<\/td>\n | \n +180 bps<\/i><\/p>\n<\/td>\n | \n +10 bps<\/i><\/p>\n<\/td>\n | \n (60) bps<\/i><\/p>\n<\/td>\n<\/tr>\n<\/table>\n Table 1B: 4Q24 ADV<\/b><\/p>\n\n\n | \n | \n | \nCREDIT<\/b><\/td>\n | | \nRATES<\/b><\/td>\n | | <\/tr>\n \n$ in millions
(unaudited)<\/td>\n | \n US\/UK
\n
Trading Days5<\/sup><\/b><\/p>\n<\/td>\n\n Total
\n
ADV<\/b><\/p>\n<\/td>\n | \n Total
\n
Credit<\/b><\/p>\n<\/td>\n | \n High-Grade<\/b><\/p>\n<\/td>\n | \n High-Yield<\/b><\/p>\n<\/td>\n | \n Emerging
\n
Markets<\/b><\/p>\n<\/td>\n | \n Eurobonds<\/b><\/p>\n<\/td>\n | \n Municipal
\n
Bonds<\/b><\/p>\n<\/td>\n | \n Total
\n
Rates<\/b><\/p>\n<\/td>\n | \n US Govt.
\n
Bonds<\/b><\/p>\n<\/td>\n | \n Agcy.\/Other
\n
Govt. Bonds<\/b><\/p>\n<\/td>\n<\/tr>\n\n| \n 4Q24<\/b><\/p>\n<\/td>\n | \n \n62\/64<\/p>\n<\/td>\n | \n \n$41,030<\/p>\n<\/td>\n | \n \n$13,883<\/p>\n<\/td>\n | \n \n$6,454<\/p>\n<\/td>\n | \n \n$1,345<\/p>\n<\/td>\n | \n \n$3,459<\/p>\n<\/td>\n | \n \n$2,001<\/p>\n<\/td>\n | \n \n$620<\/p>\n<\/td>\n | \n \n$27,147<\/p>\n<\/td>\n | \n \n$25,952<\/p>\n<\/td>\n | \n \n$1,195<\/p>\n<\/td>\n<\/tr>\n | \n| \n 3Q24<\/b><\/p>\n<\/td>\n | \n \n64\/65<\/p>\n<\/td>\n | \n \n$40,516<\/p>\n<\/td>\n | \n \n$14,116<\/p>\n<\/td>\n | \n \n$7,027<\/p>\n<\/td>\n | \n \n$1,278<\/p>\n<\/td>\n | \n \n$3,333<\/p>\n<\/td>\n | \n \n$1,891<\/p>\n<\/td>\n | \n \n$577<\/p>\n<\/td>\n | \n \n$26,400<\/p>\n<\/td>\n | \n \n$25,302<\/p>\n<\/td>\n | \n \n$1,098<\/p>\n<\/td>\n<\/tr>\n | \n| \n 4Q23<\/b><\/p>\n<\/td>\n | \n \n62\/63<\/p>\n<\/td>\n | \n \n$29,641<\/p>\n<\/td>\n | \n \n$13,108<\/p>\n<\/td>\n | \n \n$6,215<\/p>\n<\/td>\n | \n \n$1,653<\/p>\n<\/td>\n | \n \n$2,927<\/p>\n<\/td>\n | \n \n$1,767<\/p>\n<\/td>\n | \n \n$539<\/p>\n<\/td>\n | \n \n$16,533<\/p>\n<\/td>\n | \n \n$16,106<\/p>\n<\/td>\n | \n \n$427<\/p>\n<\/td>\n<\/tr>\n | \n| \n YoY % Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n38%<\/p>\n<\/td>\n | \n \n6%<\/p>\n<\/td>\n | \n \n4%<\/p>\n<\/td>\n | \n \n(19%)<\/p>\n<\/td>\n | \n \n18%<\/p>\n<\/td>\n | \n \n13%<\/p>\n<\/td>\n | \n \n15%<\/p>\n<\/td>\n | \n \n64%<\/p>\n<\/td>\n | \n \n61%<\/p>\n<\/td>\n | \n \n180%<\/p>\n<\/td>\n<\/tr>\n | \n| \n QoQ % Change<\/b><\/p>\n<\/td>\n | \n \n\u00a0<\/p>\n<\/td>\n | \n \n1%<\/p>\n<\/td>\n | \n \n(2%)<\/p>\n<\/td>\n | \n \n(8%)<\/p>\n<\/td>\n | \n \n5%<\/p>\n<\/td>\n | \n \n4%<\/p>\n<\/td>\n | \n \n6%<\/p>\n<\/td>\n | \n \n7%<\/p>\n<\/td>\n | \n \n3%<\/p>\n<\/td>\n | \n \n3%<\/p>\n<\/td>\n | \n \n9%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n Table 1C: 4Q24 estimated market share<\/b><\/p>\n | | | | | | | | | | |