On Wednesday, MarketAxess Holdings Inc. (NASDAQ:MKTX) experienced a 6% drop in share price following the release of its November trading data, which analysts at Redburn Atlantic described as disappointing. The electronic trading platform operator disclosed a total average daily volume (ADV) of $44.9 billion for November 2024, which, despite a year-over-year growth of 56%, marked a 3% sequential decline from October levels.
In the U.S. high-grade segment, ADV remained flat year-over-year at $6.5 billion but decreased by 5% from the previous month. The company's estimated market share in this space also fell to 18%, a drop of 260 basis points compared to the previous year. U.S. high-yield ADV saw a sharper decline, plummeting 31% year-over-year and 12% month-over-month, with market share receding to 12.3% from 17.0% the previous year.
On a brighter note, emerging markets ADV rose by 15% year-over-year to a record $3.8 billion, driven by a 24% increase in hard currency volume. The report also noted record municipal bond ADV, which grew 5% compared to the prior year. Despite these gains, portfolio trading ADV, which grew 49% year-over-year, experienced a 24% sequential decrease, with market share in U.S. high-grade and high-yield portfolio trading dropping to 13.6%.
MarketAxess CEO Chris Concannon highlighted the company's achievements, including the increased engagement in block trading and enhancements to portfolio trading functionality. He also pointed to the strategic initiatives aimed at growing market share in U.S. credit over the coming quarters.
The preliminary variable transaction fees per million (FPM) for total credit in November 2024 were approximately $146, down from $157 year-over-year and from $154 in October 2024. The rates segment also saw a decrease, with total rates ADV up 112% year-over-year but down 2% from October 2024. The company had faced challenges in the previous year due to an outage at ICBC, which affected U.S. Treasury settlement services.
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