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MarketAxess' (MKTX) November Trading Suggests Strong Business
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MarketAxess Holdings Inc. (MKTX - Free Report) reported total trading volume of $503.9 billion for November 2020, reflecting 9.4% improvement year over year.
This operator of a leading electronic trading platform for fixed-income securities and a provider of market data and post-trade services reported average daily volume (ADV) of $26.4 billion, up 9.3% year over year. This upside can was led by increased trading in U.S high-grade bonds and other credit bonds.
The company’s strong volumes for both October and November during the December quarter mirror accelerating market share gains, robust credit market volumes and a global shift among dealers and investors toward fixed income trading automation.
The company is gaining from higher-than-normal spread volatility dragging the current markets amid COVID-induced economic downturn.
MarketAxess has been growing its share of U.S credit market via its Open Trading platform. Launched in 2012, MarketAxess Open Trading is an electronic all-to-all credit trading marketplace, enabling market participants to source liquidity from a network of more than1,100 institutional investors and dealer firms.
Open Trading delivers real cost savings by increasing trading efficiencies and widely expanding the liquidity pool for global credit trading. This means that investors can easily find buyers or sellers at a moment's notice.
Also, the large fixed income market is undergoing a major structural shift following the dictates of regulatory and market trends. The company is the leading electronic trading network for the institutional market of U.S. credit products. With the increasing electronic trading market share, though in early stages of MarketAxess’ market penetration, the company is provided with ample room for progress.
The company’s acquisition of Liquidity Edge offered an attractive entry point to the U.S. bond Treasury market. It is on course to acquire MuniBrokers and Deutsche Börse Regulatory Reporting Hub. The buyout of the Regulatory Reporting Hub will help the company further expand its post-trade reporting and pre- and post-trade data service services across a broader European client base, particularly in Germany, France and the Nordics. The MuniBrokers’ purchase will strengthen MarketAxess’ existing municipal bond trading solution for global institutional investors and dealer clients.
Solid growth in core products, superior financial model, large and increasing addressable market, significant operating leverage and an expanded suite of electronic trading protocols bode well for the company in the long haul.
However, one risk that the company may face is a decline in volatility in the credit markets decreases and a slowdown in corporate debt. This might hurt its trading volumes and affect revenues in turn.
In six months’ time, the stock has gained 4% compared with its industry’s growth of 3.7%. Other securities exchange companies in the same space, such as Intercontinental Exchange Inc. (ICE - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) have also rallied 9.6% and 9.3%, respectively. While CME Group Inc. (CME - Free Report) has lost 1.4% during the same time frame.
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
Image: Bigstock
MarketAxess' (MKTX) November Trading Suggests Strong Business
MarketAxess Holdings Inc. (MKTX - Free Report) reported total trading volume of $503.9 billion for November 2020, reflecting 9.4% improvement year over year.
This operator of a leading electronic trading platform for fixed-income securities and a provider of market data and post-trade services reported average daily volume (ADV) of $26.4 billion, up 9.3% year over year. This upside can was led by increased trading in U.S high-grade bonds and other credit bonds.
The company’s strong volumes for both October and November during the December quarter mirror accelerating market share gains, robust credit market volumes and a global shift among dealers and investors toward fixed income trading automation.
The company is gaining from higher-than-normal spread volatility dragging the current markets amid COVID-induced economic downturn.
MarketAxess has been growing its share of U.S credit market via its Open Trading platform. Launched in 2012, MarketAxess Open Trading is an electronic all-to-all credit trading marketplace, enabling market participants to source liquidity from a network of more than1,100 institutional investors and dealer firms.
Open Trading delivers real cost savings by increasing trading efficiencies and widely expanding the liquidity pool for global credit trading. This means that investors can easily find buyers or sellers at a moment's notice.
Also, the large fixed income market is undergoing a major structural shift following the dictates of regulatory and market trends. The company is the leading electronic trading network for the institutional market of U.S. credit products. With the increasing electronic trading market share, though in early stages of MarketAxess’ market penetration, the company is provided with ample room for progress.
The company’s acquisition of Liquidity Edge offered an attractive entry point to the U.S. bond Treasury market. It is on course to acquire MuniBrokers and Deutsche Börse Regulatory Reporting Hub. The buyout of the Regulatory Reporting Hub will help the company further expand its post-trade reporting and pre- and post-trade data service services across a broader European client base, particularly in Germany, France and the Nordics. The MuniBrokers’ purchase will strengthen MarketAxess’ existing municipal bond trading solution for global institutional investors and dealer clients.
Solid growth in core products, superior financial model, large and increasing addressable market, significant operating leverage and an expanded suite of electronic trading protocols bode well for the company in the long haul.
However, one risk that the company may face is a decline in volatility in the credit markets decreases and a slowdown in corporate debt. This might hurt its trading volumes and affect revenues in turn.
In six months’ time, the stock has gained 4% compared with its industry’s growth of 3.7%. Other securities exchange companies in the same space, such as Intercontinental Exchange Inc. (ICE - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) have also rallied 9.6% and 9.3%, respectively. While CME Group Inc. (CME - Free Report) has lost 1.4% during the same time frame.
The stock carries a Zacks Rank #2 (Buy), currently.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>