All-to-All Open Trading™ provides meaningful source of new liquidity
MarketAxess Holdings Inc. (Nasdaq: MKTX), the 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, today announced a new daily volume record in high-yield (HY) trading of approximately $1 billion on Friday, December 11, 2015. Recent market volatility has also driven an increase in estimated market share for MarketAxess, with over 10% share of TRACE HY volumes on December 11th, compared to an estimated 5.9% share during the third quarter.
“Recent volatility in high-yield markets has prompted investors and dealers to use electronic trading more than ever. Our all-to-all Open Trading™ technology allows participants on MarketAxess to seamlessly trade with all other Open Trading participants on the platform. So far in the fourth quarter, 25% of all high-yield volume on MarketAxess has been conducted through Open Trading. During this period, both buyers and sellers of high-yield bonds were able to achieve meaningful transaction cost savings through the ability to transact directly on MarketAxess, with an average cost savings of $4,170 per million traded,” said Sandy White, High Yield Product Manager.
“In response to post-crisis regulation, we have made significant investments in Open Trading with the belief that credit market participants need new and alternative sources of liquidity. The continued growth of our Open Trading volumes for high-yield trading, especially during periods of volatility, demonstrates that Open Trading provides a valuable source of new secondary market liquidity,” said Richard Schiffman, Open Trading Product Manager, MarketAxess.
MarketAxess is the leading electronic trading platform for U.S. high-grade and high-yield debt. It is uniquely positioned to be the venue of choice for global credit trading, offering a broad range of trading protocols, including both disclosed and anonymous trading within the same workflow. Approximately 1,000 institutional firms traded on MarketAxess in the third quarter of 2015, driving total inquiry volume on the platform up 50% from the prior year third quarter.