MarketAxess reports first returns from SFTR solution
29 October 2020 London
Image: MarketAxess
MarketAxess earned just over $1 million from its Securities Financing Transactions Regulation (SFTR) reporting services and new data sales in Q3, which contributed to an overall year-on-year (YoY) uptick of 25 percent in quarterly revenue.
Revenue from the SFTR service — which launched in partnership with EquiLend in July for phase one and two firms — is collated as part of MarketAxess’ information service and post trade services earnings, totalling $13.4 million for the quarter; a 14 percent increase on Q3 2019.
Of this total, the SFTR solution and new data sales contributed $1.1 million.
The service provider shows in its latest report that this figure also benefitted from the favourable impact of the weaker US dollar worth $600,000, which also contributed to the increase.
Post trade services alone brought in $4.69 million in Q3 up from $3.78 million in the same period in 2019, while January to 30 September revenue increased by just over $1 million to reach $12.9 million this year.
MarketAxess’ total revenues for the third quarter increased by a quarter hitting $164 million, up from $131.6 million seen in Q3 2019.
Revenue for Q2 the also increased 47 percent to $184.8 million, compared to $125.5 million in Q2 2019.
Meanwhile, operating income for Q3 was $87.8 million, up 33 percent YoY, while net income increased 26 percent YoY to $67.8 million.
Rick McVey, chairman and CEO of MarketAxess, says: “Trading automation and lower transaction costs on MarketAxess are driving a sustainable change in trading behaviour among institutional market participants.
“Market share gains fueled strong revenue and earnings growth with higher operating margins during the quarter.”
A dividend of 60 cents per share will be paid on 25 November.
Revenue from the SFTR service — which launched in partnership with EquiLend in July for phase one and two firms — is collated as part of MarketAxess’ information service and post trade services earnings, totalling $13.4 million for the quarter; a 14 percent increase on Q3 2019.
Of this total, the SFTR solution and new data sales contributed $1.1 million.
The service provider shows in its latest report that this figure also benefitted from the favourable impact of the weaker US dollar worth $600,000, which also contributed to the increase.
Post trade services alone brought in $4.69 million in Q3 up from $3.78 million in the same period in 2019, while January to 30 September revenue increased by just over $1 million to reach $12.9 million this year.
MarketAxess’ total revenues for the third quarter increased by a quarter hitting $164 million, up from $131.6 million seen in Q3 2019.
Revenue for Q2 the also increased 47 percent to $184.8 million, compared to $125.5 million in Q2 2019.
Meanwhile, operating income for Q3 was $87.8 million, up 33 percent YoY, while net income increased 26 percent YoY to $67.8 million.
Rick McVey, chairman and CEO of MarketAxess, says: “Trading automation and lower transaction costs on MarketAxess are driving a sustainable change in trading behaviour among institutional market participants.
“Market share gains fueled strong revenue and earnings growth with higher operating margins during the quarter.”
A dividend of 60 cents per share will be paid on 25 November.
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