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MarketAxess (MKTX) Witnesses Q2 and June Volumes Decline
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MarketAxess Holdings Inc. (MKTX - Free Report) reported total monthly trading volume for the second quarter and June 2021. Total monthly volume was $1.6 trillion for the second quarter, which comprises $344.9 billion in other credit volume and $888.3 billion in rates volume.
Further, the company’s quarterly volumes were affected by reduced U.S. high-grade and rates volume. Case in point, the metric slipped 5.9% year over year in the second quarter of 2021. Nevertheless, the same partly benefited from improved other credit volume, courtesy of higher Eurobonds, emerging markets and other credit products volumes.
While the company’s U.S. high-grade trading volume of $324 billion declined 21.8% year over year, rates volume fell 7% year over year to $888.3 billion. However, the company reported total other credit volume of $344.9 billion, which rose 5.4% year over year.
Moreover, this operator of a leading electronic trading platform announced average daily volume (ADV) of $24.8 billion in the second quarter, which declined 8.1% year over year.
Fall in June Volumes
Concurrently, MarketAxess also unveiled trading volumes for June 2021. During the month, the company’s total trading volume decreased 2% year over year to $567 billion. Nevertheless, the same grew 18.4% sequentially.
The year over year downside was due to 18.3% and 0.6% drop in trading volumes pertaining to U.S high-grade and other credit products, respectively. However, the company’s monthly volumes were partly driven by 5% rise in rates volume. Also, the company’s ADV of $25.8 billion declined 1.9% in the month on a year-over-year basis.
It has to be noted that the company’s business prospers with credit spread fluctuations. The pandemic led to higher credit spread volatility, which reflected possibilities of ample market risks. As a result, investments in bonds seemed to be a prudent decision and led to higher bond trading. Businesses are slowly bouncing back with strong financial standing and have reduced borrowing needs. A gradual recovery of the U.S. economy is expected to keep credit spreads tighter in 2021.
Despite dampened volumes, MarketAxess remains well-poised for building a diversified portfolio with constant product enhancements and technological upgradations. The company boasts of a strong liquidity position, which paves the way for pursuing several growth-related initiatives and results in prudent capital deployment.
Zacks Rank & Price Performance
Shares of MarketAxess have lost 31.2% in the past year against the industry’s growth of 13.4%.
CME Group (CME - Free Report) reported of ADV 18.4 million contracts for June. ADV improved 7%, attributable to higher volumes in four product lines.
Intercontinental Exchange (ICE - Free Report) reported ADV of 5.9 million contracts for the month. ADV increased 12.1%, courtesy of higher volumes in Commodities as well as Financials.
CBOE Global (CBOE - Free Report) reported ADV of 12.2 million contracts for the month. ADV increased 12.6%, attributable to higher volumes in Options, partly offset by lower volumes in Futures. U.S. Equities Global Forex, European Equities decreased in the month.
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MarketAxess (MKTX) Witnesses Q2 and June Volumes Decline
MarketAxess Holdings Inc. (MKTX - Free Report) reported total monthly trading volume for the second quarter and June 2021. Total monthly volume was $1.6 trillion for the second quarter, which comprises $344.9 billion in other credit volume and $888.3 billion in rates volume.
Further, the company’s quarterly volumes were affected by reduced U.S. high-grade and rates volume. Case in point, the metric slipped 5.9% year over year in the second quarter of 2021. Nevertheless, the same partly benefited from improved other credit volume, courtesy of higher Eurobonds, emerging markets and other credit products volumes.
While the company’s U.S. high-grade trading volume of $324 billion declined 21.8% year over year, rates volume fell 7% year over year to $888.3 billion. However, the company reported total other credit volume of $344.9 billion, which rose 5.4% year over year.
Moreover, this operator of a leading electronic trading platform announced average daily volume (ADV) of $24.8 billion in the second quarter, which declined 8.1% year over year.
Fall in June Volumes
Concurrently, MarketAxess also unveiled trading volumes for June 2021. During the month, the company’s total trading volume decreased 2% year over year to $567 billion. Nevertheless, the same grew 18.4% sequentially.
The year over year downside was due to 18.3% and 0.6% drop in trading volumes pertaining to U.S high-grade and other credit products, respectively. However, the company’s monthly volumes were partly driven by 5% rise in rates volume. Also, the company’s ADV of $25.8 billion declined 1.9% in the month on a year-over-year basis.
It has to be noted that the company’s business prospers with credit spread fluctuations. The pandemic led to higher credit spread volatility, which reflected possibilities of ample market risks. As a result, investments in bonds seemed to be a prudent decision and led to higher bond trading. Businesses are slowly bouncing back with strong financial standing and have reduced borrowing needs. A gradual recovery of the U.S. economy is expected to keep credit spreads tighter in 2021.
Despite dampened volumes, MarketAxess remains well-poised for building a diversified portfolio with constant product enhancements and technological upgradations. The company boasts of a strong liquidity position, which paves the way for pursuing several growth-related initiatives and results in prudent capital deployment.
Zacks Rank & Price Performance
Shares of MarketAxess have lost 31.2% in the past year against the industry’s growth of 13.4%.
The company has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other Companies Reporting June Volumes
CME Group (CME - Free Report) reported of ADV 18.4 million contracts for June. ADV improved 7%, attributable to higher volumes in four product lines.
Intercontinental Exchange (ICE - Free Report) reported ADV of 5.9 million contracts for the month. ADV increased 12.1%, courtesy of higher volumes in Commodities as well as Financials.
CBOE Global (CBOE - Free Report) reported ADV of 12.2 million contracts for the month. ADV increased 12.6%, attributable to higher volumes in Options, partly offset by lower volumes in Futures. U.S. Equities Global Forex, European Equities decreased in the month.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
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