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MarketAxess (MKTX) Reports Solid March Volume Statistics

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MarketAxess Holdings Inc.’s (MKTX - Free Report) average daily volume (ADV) of $269.5 billion for March 2020 was up 50.8% year over year.

This operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets also reported $647.1 billion in rates volume.

Total monthly trading volume of $916.6 billion skyrocketed 401.7% year over year.

In March, the company’s total credit trading average daily volume came in at $12.2 billion. It also reported Open Trading average daily trading volume of $4.4 billion and total trading volume of $96.3 billion.

Notably, U.S. high-grade trading volume of $141.1 billion expanded 45.8% year over year.

Emerging markets average daily trading volume and overall trading volume summed $2.5 billion and $55 billion, respectively, up 31.6% and 35.8% year over.

For March, Eurobond average daily trading volume of $1.6 billion surged 45.5% year over year while overall trading volume of $34.9 billion soared 51.1%. Municipal bond total trading volume and U.S. Treasuries total trading volume resulted in $1.3 billion and $639.5 billion, respectively.

MarketAxess also reported preliminary variable transaction fees per million (“FPM”) of $176 for U.S. high-grade, $199 for other credit, $188 for total credit and $3.80 for rates for the quarter ended Mar 31, 2020. However, the same is preliminary and is subject to revision.

In a volatile market, the company helped more than 10,000 trading users connect to MarketAxess from home, thereby managing risks.

The company’s solid trading volumes aided it to drive commission (which forms the lion’s share of total revenues), which in turn, consistently contributed to its top-line growth. It has been successful in increasing its trading volumes through inorganic and organic strategies. Its constant pursuit of teeming international opportunities, a compelling economic market model and a diversified product suite of the highly demanded U.S. high-grade floating rate and other credit bonds to bump up its volumes will further boost commission revenues.

Shares of this Zacks Rank #1 (Strong Buy) company have gained 39.8% in a year's time, outperforming its industry's growth of 5.3%.



Other Stocks to Consider

Investors interested in the same space might also take a look at some other top-ranked stocks, such as Nasdaq, Inc. (NDAQ - Free Report) , Cboe Global Markets, Inc. (CBOE - Free Report) and Intercontinental Exchange Inc. (ICE - Free Report) . While Nasdaq sports a Zacks Rank of 1, Cboe Global and Intercontinental Exchange carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Nasdaq, Cboe Global and Intercontinental Exchange came up with a four-quarter positive surprise of 3.3%, 9.5% and 4.3%, on average, respectively.

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