MarketAxess

Last updated

MarketAxess Holdings Inc.
Company type Public
ISIN US57060D1081
IndustryFinancial Services
Founded2000;24 years ago (2000)
Founder Richard McVey
Headquarters 55 Hudson Yards
New York City, U.S.
Key people
RevenueIncrease2.svg US$718 million (2022)
Decrease2.svgUS$327 million (2022)
Decrease2.svgUS$250 million (2022)
Total assets Increase2.svgUS$1.61 billion (2022)
Total equity Increase2.svgUS$1.08 billion (2022)
Number of employees
744 (2022)
Website marketaxess.com
Footnotes /references
[1]

MarketAxess Holdings Inc. (MarketAxess) is an international financial technology company that operates an electronic trading platform for the institutional credit markets, [2] and also provides market data and post-trade services. [3] It enables institutional investors and broker-dealers to trade credit instruments, including corporate bonds, and other types of fixed income products. [4]

Contents

MarketAxess was founded in 2000 by Richard McVey, who is the company’s Executive Chairman. [4] Headquartered in New York, MarketAxess has 744 employees [1] and serves clients in the Americas, Europe, Latin America and Asia. [2] Today, it is the market leader in the electronic trading of US corporate bonds, with 85% of investment-grade and 84% of high-yield debt traded electronically on its platform. [5] That equates to 20% of all corporate bond trading volume in the US. [6] As of October 2020, the company is valued at $20.43bn.

History

McVey originally proposed the model for MarketAxess in 1999 as part of J.P. Morgan's Lab Morgan program, which was designed to back executives’ ideas for using web-based technology. He launched the company as an independent venture in 2000, with $24 million in capital which he’d raised from other market participants including Bear Stearns. [7] MarketAxess began trading investment-grade corporate bonds and gave investors access to new issues and research in November of that year. [8]

In 2001, MarketAxess acquired Trading Edge Inc., which owned BondLink, a start-up bond company that had enabled investors to buy and sell bonds online. [8]

The company went public in 2004, with a stock value of $11 a share. [7]

In 2012, MarketAxess announced a partnership to link up with BlackRock’s Aladdin platform. [9] That year, it also announced the launch of its all-to-all trading marketplace, Open Trading. [10]

In 2013, MarketAxess acquired London-based Trax. [11]

In 2015, MarketAxess and BlackRock extended their Open Trading partnership, already in place in the US, to the European credit markets. [12]

In March the company announced the extension of its all-to-all Open Trading partnership with BlackRock to Asia, focused mainly on US dollar-denominated corporate and sovereign bonds and other securities traded by market participants in the region. [13]

In August 2019, the company announced it would enter Treasury trading with the acquisition of the LiquidityEdge platform. [14]

in September 2020, the company agreed to buy MuniBrokers. [15]

In September 2020, the company entered into an agreement to acquire the Regulatory Reporting Hub. [16]

In April 2022, MarketAxess and MSCI announced a collaboration on fixed income indices, portfolio construction products, and ESG data that would leverage MSCI's ESG data. [17] [18] [19] [20] [21]

In May 2022, MarketAxess was one of multiple financial services firms that APARMA, or the APAs and ARMs Association, set up to represent the views of members on regulation and laws influencing related businesses of the companies involved and to facilitate dialogue between policymakers and regulators. Chris Smith, head of post-trade services at the firm, would be its first chairperson. [22] [23] [24] [25]

In June 2022, MarketAxess was one of three companies that announced a collaboration to become a consolidated tape, or single price feed, provider for bond prices through the public procurement process of ESMA. News of this effort first appeared in November 2021. If approved, the joint venture would be operated independently from its existing business. Like Tradeweb and Bloomberg, the other two firms, MarketAxess already operated its own APA prior to this announcement. This was in response to the EU's effort to unify capital markets and improve trading data quality. it may be the first step towards having this for a range of asset classes. It's also a move to make European capital markets more like those of the US, which has TRACE. [26] [27] [28] [29]

In September 2022, the company announced an extension of its partnership with Broadway Technologies that would see a request-for-quote workflow featuring in its US Treasury trading marketplace. [30]

In January 2023, the company announced president and chief operating officer Chris Concannon would replace current CEO Richard McVey in April 2023. Concannon had been in his roles since 2019. [31]

In April 2023, Chris Concannon became CEO of MarketAxess. [32]

Related Research Articles

In finance, a high-yield bond is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds in order to compensate for the increased risk.

<span class="mw-page-title-main">Bond (finance)</span> Instrument of indebtedness

In finance, a bond is a type of security under which the issuer (debtor) owes the holder (creditor) a debt, and is obliged – depending on the terms – to provide cash flow to the creditor. The timing and the amount of cash flow provided varies, depending on the economic value that is emphasized upon, thus giving rise to different types of bonds. The interest is usually payable at fixed intervals: semiannual, annual, and less often at other periods. Thus, a bond is a form of loan or IOU. Bonds provide the borrower with external funds to finance long-term investments or, in the case of government bonds, to finance current expenditure.

A municipal bond, commonly known as a muni, is a bond issued by state or local governments, or entities they create such as authorities and special districts. In the United States, interest income received by holders of municipal bonds is often, but not always, exempt from federal and state income taxation. Typically, only investors in the highest tax brackets benefit from buying tax-exempt municipal bonds instead of taxable bonds. Taxable equivalent yield calculations are required to make fair comparisons between the two categories.

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<span class="mw-page-title-main">MSCI</span> American financial service provider

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The Bloomberg US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. Investors frequently use the index as a stand-in for measuring the performance of the US bond market.

<span class="mw-page-title-main">Securities research</span> Discipline within the financial services industry

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<span class="mw-page-title-main">CanDeal</span> Canadian online financial exchange

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Larry Eugene Fondren is an American entrepreneur, inventor and credit markets expert noted for his efforts to bring transparency and higher yields to the bond market and for improving access within financial markets.

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Tradeweb Markets Inc. (Tradeweb) is an international financial technology company that builds and operates electronic over-the-counter (OTC) marketplaces for trading fixed income products, ETFs, and derivatives. Its customers include banks, asset managers, central banks, pension funds and insurance companies. Tradeweb's headquarters are in New York City.

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Overbond Ltd. is a Canadian financial technology company, specializing in fixed income analytics, and based in Toronto, Ontario.

Richard Mitchell McVey, known as Rick, is an American entrepreneur who serves as chairman and chief executive officer of MarketAxess, which operates an electronic trading platform for corporate bonds and other fixed-income products. McVey has led MarketAxess since he founded the company in April 2000.

Lee Olesky is an American financial executive and entrepreneur. He is co-founder of Tradeweb and formerly served as the company's Chairman and Chief Executive Officer. Tradeweb is an international financial technology company that builds and operates electronic over-the-counter marketplaces for trading fixed income products, ETFs, and derivatives.

<span class="mw-page-title-main">EuroCTP</span>

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References

  1. 1 2 "MarketAxess Holdings Inc. 2022 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 22, 2023.
  2. 1 2 "Company Overview of MarketAxess Corporation". Bloomberg. Bloomberg L.P. Retrieved July 9, 2018.
  3. ↑ McFarlane, Flora (February 9, 2018). "MarketAxess reports record electronic trading volumes for January". The Desk. Retrieved July 9, 2018.
  4. 1 2 "MarketAxess Holdings Inc". The Wall Street Journal. Dow Jones & Company. Retrieved July 9, 2018.
  5. ↑ Leising, Matthew; Smith, Molly (February 15, 2018). "Electronic Bond Trading Gains Ground". Bloomberg L.P. Retrieved July 9, 2018.
  6. ↑ Basar, Shanny (September 10, 2017). "MarketAxess Looks Beyond MiFID II". Markets Media. Retrieved July 9, 2018.
  7. 1 2 Tully, Shawn (December 4, 2014). "The man behind the $7.7 trillion bond revolution". Fortune . Retrieved July 10, 2018.
  8. 1 2 Zuckerman, Gregory (January 31, 2001). "Market Axess to Buy Trading Edge, Create Large Online Bond Market". The Wall Street Journal . Retrieved July 10, 2018.
  9. ↑ Cave, Tim (April 14, 2014). "Tradeweb toasts the Thomson years". Financial News . Retrieved July 10, 2018.
  10. ↑ "Marketaxess bolsters bond trading platform in Asia". Reuters. September 6, 2016. Retrieved July 10, 2018.
  11. ↑ Agini, Samuel; Sahloul, Fareed (February 28, 2017). "MarketAxess appoints head of Europe and Asia". Financial News . Retrieved July 10, 2018.
  12. ↑ Daras, Marina (January 22, 2015). "MarketAxess and BlackRock's Open Trading Comes to Europe". Waters Technology. Retrieved July 10, 2018.
  13. ↑ Dalal, Manju (March 7, 2018). "Asian Bond Trading Gets a Push From BlackRock". The Wall Street Journal . Retrieved July 10, 2018.
  14. ↑ Wirz, Matt (August 13, 2019). "MarketAxess Breaks Into Treasury Trading With Acquisition". Wall Street Journal. ISSN   0099-9660 . Retrieved February 28, 2020.
  15. ↑ dan.barnes (September 16, 2020). "MarketAxess to buy MuniBrokers". The DESK - Fixed Income Trading. Retrieved October 17, 2020.
  16. ↑ "Deutsche Börse Group - MarketAxess to acquire Regulatory Reporting Hub from Deutsche Börse Group". deutsche-boerse.com. Retrieved October 17, 2020.
  17. ↑ "MSCI and MarketAxess enter into a strategic collaboration - The TRADE". www.thetradenews.com. Retrieved April 29, 2022.
  18. ↑ "MSCI and MarketAxess Collaborate on Indexes". Markets Media. April 29, 2022. Retrieved April 29, 2022.
  19. ↑ Haswell, Securities Finance Times reporter Carmella. "MSCI and MarketAxess collaborate on liquidity fixed income indexes". www.securitiesfinancetimes.com. Retrieved April 29, 2022.
  20. ↑ "MSCI and MarketAxess collaborate | Structured Finance | Structured Credit Investor". www.structuredcreditinvestor.com. Retrieved April 29, 2022.
  21. ↑ "MSCI, MarketAxess partner on fixed income indexes". www.globalinvestorgroup.com. Retrieved October 1, 2023.
  22. ↑ "APAs and ARMs partner to launch new trade association - The TRADE". www.thetradenews.com. Retrieved June 3, 2022.
  23. ↑ Lomax, Securities Finance Times reporter Jenna. "Reporting entities launch APARMA association". www.securitiesfinancetimes.com. Retrieved June 3, 2022.
  24. ↑ "New industry association formed for trade reporting". www.fundstech.com. Retrieved June 3, 2022.
  25. ↑ "Cboe, Euronext, LSE among firms forming reporting trade body". www.globalinvestorgroup.com. May 27, 2022.
  26. ↑ Chan, Jeremy. "MarketAxess, Tradeweb, Bloomberg join forces in bid to tackle soaring bond data prices". www.fnlondon.com. Retrieved June 22, 2022.
  27. ↑ Jones, Huw (June 22, 2022). "MarketAxess, Tradeweb and Bloomberg plan joint EU bond price feed". Reuters. Retrieved June 22, 2022.
  28. ↑ "Bloomberg, MarketAxess and Tradeweb take the wheel in European fixed income tape plans - The TRADE". www.thetradenews.com. Retrieved June 22, 2022.
  29. ↑ "Top three fixed income venues confirm bid to deliver EU consolidated tape for bonds". WatersTechnology.com. June 22, 2022. Retrieved June 22, 2022.
  30. ↑ "Broadway Technology partners with MarketAxess for US Treasury trading integration - The TRADE". www.thetradenews.com. Retrieved September 8, 2022.
  31. ↑ "MarketAxess selects president Concannon to replace departing chief executive - The TRADE". www.thetradenews.com. Retrieved January 9, 2023.
  32. ↑ "MarketAxess Promotes Chris Concannon to Chief Executive Officer; Richard M. McVey to Become Executive Chairman". investor.marketaxess.com. Retrieved April 26, 2023.
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