MarketAxess reports record-breaking revenue and volumes in Q1
01 May 2020 London
Image: AfricaStudio/Shutterstock.com
MarketAxess shattered several volume and revenue records for the first quarter of the year due to market volatility brought on by the COVID-19 pandemic.
The electronic trading platform for fixed income securities and the provider of market data and post-trade services for the global fixed-income markets saw total revenues of Q1 increased 36 percent to $169 million, compared to $124.5 million for the same period in 2019.
Operating income contributed significantly to this figure, having increased 44 percent to $91.1 million, year-over-year.
Net income totalled $74.8 million, or $1.96 per share on a diluted basis, compared to $52.5 million, or $1.39 per share for the first quarter of 2019.
All other revenue, which consists of information services, post trade services and other revenue, increased 11 percent to $13 million, compared to $11.7 million for the first quarter of 2019.
The increase in all other revenue was principally due to higher information services revenue of $1.3 million.
Discussing the Q1 results, Rick McVey, chairman and CEO of MarketAxess, says: "Our heartfelt thoughts go out to the millions of people around the world that have lost loved ones and had their lives turned upside down by the Covid-19 pandemic.
"The steep drop in economic activity in the first quarter had an immediate and substantial impact on global credit markets with sharp credit spread widening, especially in high-yield and emerging markets.
“During this market disruption, credit trading volumes reached record levels in March, and electronic trading market share on MarketAxess increased.”
MarketAxess says its operating margin was up to 53.9 percent, compared to 50.8 percent for the first quarter of 2019.
Moreover, volume on MarketAxess’ all-to-all corporate bond marketplace, Open Trading, also reached new highs in Q1, increasing 55 percent to hit $208.6 billion, compared to Q1 2019.
The firm saw record trading volume in US high-grade, US high-yield, emerging market, Eurobond, municipal and US treasury bonds.
“Open Trading liquidity was essential to the functioning of credit markets during the quarter, the indispensable role of electronic fixed-income trading networks was evident in the record number of client firms and individual traders that transacted on MarketAxess during the month of March," McVey adds.
The electronic trading platform for fixed income securities and the provider of market data and post-trade services for the global fixed-income markets saw total revenues of Q1 increased 36 percent to $169 million, compared to $124.5 million for the same period in 2019.
Operating income contributed significantly to this figure, having increased 44 percent to $91.1 million, year-over-year.
Net income totalled $74.8 million, or $1.96 per share on a diluted basis, compared to $52.5 million, or $1.39 per share for the first quarter of 2019.
All other revenue, which consists of information services, post trade services and other revenue, increased 11 percent to $13 million, compared to $11.7 million for the first quarter of 2019.
The increase in all other revenue was principally due to higher information services revenue of $1.3 million.
Discussing the Q1 results, Rick McVey, chairman and CEO of MarketAxess, says: "Our heartfelt thoughts go out to the millions of people around the world that have lost loved ones and had their lives turned upside down by the Covid-19 pandemic.
"The steep drop in economic activity in the first quarter had an immediate and substantial impact on global credit markets with sharp credit spread widening, especially in high-yield and emerging markets.
“During this market disruption, credit trading volumes reached record levels in March, and electronic trading market share on MarketAxess increased.”
MarketAxess says its operating margin was up to 53.9 percent, compared to 50.8 percent for the first quarter of 2019.
Moreover, volume on MarketAxess’ all-to-all corporate bond marketplace, Open Trading, also reached new highs in Q1, increasing 55 percent to hit $208.6 billion, compared to Q1 2019.
The firm saw record trading volume in US high-grade, US high-yield, emerging market, Eurobond, municipal and US treasury bonds.
“Open Trading liquidity was essential to the functioning of credit markets during the quarter, the indispensable role of electronic fixed-income trading networks was evident in the record number of client firms and individual traders that transacted on MarketAxess during the month of March," McVey adds.
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