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MarketAxess 1Q26 Sneak Peek: ADV Climbs on Eurobond, EM Momentum
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Key Takeaways
MKTX expects 1Q26 trading ADV of $49.8B, up 16% year over year, driven by rates strength.
MarketAxess saw Eurobonds ADV rise 20% and EM ADV jump 30% year over year.
MKTX's U.S. credit portfolio trading share rose to 19.8%, as credit FPM fell 5%.
MarketAxess Holdings Inc. (MKTX - Free Report) recently announced that in the first quarter of 2026, it recorded a total trading average daily volume (ADV) of $49.8 billion, a 16% year-over-year increase. Growth in U.S. Government Bond Rates (+14%) and Agencies and Other Government Bond Rates (+58%) boosted the total volume. Its electronic trading platform facilitated $1.1 trillion in total credit trading volume in the quarter, increasing 17% year over year.
MarketAxess’ Eurobonds and Emerging markets credit businesses witnessed 20% and 30% year-over-year growth, respectively, in ADV. New initiatives in the client-initiated, portfolio trading and dealer-initiated channels have driven growth. High-grade markets saw an 11% increase in ADV from the year-ago period.
Moreover, total credit average variable transaction fees per million (“FPM”) declined 5% year over year in the quarter due to product and protocol mix, while the same for total rates grew 9% year over year due to client mix. The number of trading days in the United States and the U.K. were 61 and 63, respectively, in the first quarter. Its estimated market share of U.S. credit portfolio trading came at 19.8%, rising from 18.8% a year ago.
MarketAxess is expanding both its trading footprint and technology platform as it pushes deeper into global electronic fixed-income markets. The first quarter figures indicate rising client adoption of its electronic marketplace. It also announced a DirectBooks integration to streamline primary issuance workflows for buy-side traders and brought in a new Chief Technology Officer to accelerate AI, platform modernization and data-driven tools.
How MKTX’s Peers Are Expanding
CME Group (CME - Free Report) is expanding its operations through growth initiatives globally, product innovation and retail client and technology enhancements. It is rolling out new micro products and equity index options enhancements. CME has been deepening its geographic footprint in Asia-Pacific and EMEA, and diversifying into crypto and short-dated options.
Bigger peer Intercontinental Exchange, Inc. (ICE - Free Report) is evolving beyond a traditional exchange operator into a full-stack market infrastructure and data platform. It is growing its data and technology business, including analytics and network solutions. Synergies from acquisitions such as Ellie Mae and Black Knight are major drivers.
MarketAxess’ Price Performance, Valuation and Estimates
Shares of MarketAxess have declined 15.8% over the past year against the industry’s growth of 47.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MarketAxess trades at a forward price-to-earnings ratio of 20.92X, higher than the industry average. MKTX carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MarketAxess’ first-quarter 2026 earnings implies an 11.2% increase year over year. The consensus mark for full-year earnings predicts a 10.4% increase from a year ago.
View the Zacks #1 Rank List
Image: Bigstock
MarketAxess 1Q26 Sneak Peek: ADV Climbs on Eurobond, EM Momentum
Key Takeaways
MarketAxess Holdings Inc. (MKTX - Free Report) recently announced that in the first quarter of 2026, it recorded a total trading average daily volume (ADV) of $49.8 billion, a 16% year-over-year increase. Growth in U.S. Government Bond Rates (+14%) and Agencies and Other Government Bond Rates (+58%) boosted the total volume. Its electronic trading platform facilitated $1.1 trillion in total credit trading volume in the quarter, increasing 17% year over year.
MarketAxess’ Eurobonds and Emerging markets credit businesses witnessed 20% and 30% year-over-year growth, respectively, in ADV. New initiatives in the client-initiated, portfolio trading and dealer-initiated channels have driven growth. High-grade markets saw an 11% increase in ADV from the year-ago period.
Moreover, total credit average variable transaction fees per million (“FPM”) declined 5% year over year in the quarter due to product and protocol mix, while the same for total rates grew 9% year over year due to client mix. The number of trading days in the United States and the U.K. were 61 and 63, respectively, in the first quarter. Its estimated market share of U.S. credit portfolio trading came at 19.8%, rising from 18.8% a year ago.
MarketAxess is expanding both its trading footprint and technology platform as it pushes deeper into global electronic fixed-income markets. The first quarter figures indicate rising client adoption of its electronic marketplace. It also announced a DirectBooks integration to streamline primary issuance workflows for buy-side traders and brought in a new Chief Technology Officer to accelerate AI, platform modernization and data-driven tools.
How MKTX’s Peers Are Expanding
CME Group (CME - Free Report) is expanding its operations through growth initiatives globally, product innovation and retail client and technology enhancements. It is rolling out new micro products and equity index options enhancements. CME has been deepening its geographic footprint in Asia-Pacific and EMEA, and diversifying into crypto and short-dated options.
Bigger peer Intercontinental Exchange, Inc. (ICE - Free Report) is evolving beyond a traditional exchange operator into a full-stack market infrastructure and data platform. It is growing its data and technology business, including analytics and network solutions. Synergies from acquisitions such as Ellie Mae and Black Knight are major drivers.
MarketAxess’ Price Performance, Valuation and Estimates
Shares of MarketAxess have declined 15.8% over the past year against the industry’s growth of 47.2%.
From a valuation standpoint, MarketAxess trades at a forward price-to-earnings ratio of 20.92X, higher than the industry average. MKTX carries a Value Score of D.
The Zacks Consensus Estimate for MarketAxess’ first-quarter 2026 earnings implies an 11.2% increase year over year. The consensus mark for full-year earnings predicts a 10.4% increase from a year ago.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.