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.
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 economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets – striking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price.
A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any form of financial instrument, even though the underlying legal and regulatory regime may not have such a broad definition. In some jurisdictions the term specifically excludes financial instruments other than equity and fixed income instruments. In some jurisdictions it includes some instruments that are close to equities and fixed income, e.g., equity warrants.
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.
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.
Oslo Stock Exchange is a stock exchange within the Nordic countries and offers Norway's only regulated markets for securities trading today. The stock exchange offers a full product range including equities, derivatives and fixed income instruments.
MSCI Inc. is an American finance company headquartered in New York City. MSCI is a global provider of equity, fixed income, real estate indices, multi-asset portfolio analysis tools, ESG and climate products. It operates the MSCI World, MSCI All Country World Index (ACWI) and MSCI Emerging Markets Indices among others.
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.
Securities research is a discipline within the financial services industry. Securities research professionals are known most generally as "analysts", "research analysts", or "securities analysts"; all the foregoing terms are synonymous. Research analysts produce research reports and typically issue a recommendation: buy ("overweight"), hold, or sell ("underweight"); see target price and trade idea.
Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada, and Europe; the Liffe futures exchanges in Europe; the New York Stock Exchange; equity options exchanges; and OTC energy, credit, and equity markets.
The Moscow Exchange is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets, and precious metals. The Moscow Exchange also operates Russia's central securities depository, the National Settlement Depository (NSD), and the country's largest clearing service provider, the National Clearing Centre. The exchange was formed in 2011 in a merger of the Moscow Interbank Currency Exchange and the Russian Trading System.
Liquidnet is a global institutional investment network that connects asset managers with liquidity. Liquidnet trades in 46 equity markets for over 1000 institutional investment firms who collectively manage US$33 trillion in equity and fixed income assets.
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.
Mizuho Americas was established on July 1, 2016 as a US bank holding company, as the American corporate and investment banking arm of the Tokyo-based Mizuho Financial Group.
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.
Credit Benchmark, (CB) is a British financial data analytics company which provides credit consensus ratings and analytics based on the contributed risk views of major global financial institutions. The internal risk views of these institutions are collected, aggregated and anonymized to create a Credit Consensus Rating on tens of thousands of corporate, financial, fund and sovereign entities globally.
David E. Rutter is an American financial services executive. He is the founder and CEO of enterprise blockchain technology company R3 and the founder and owner of US Treasuries trading platform LiquidityEdge.
Overbond Ltd. is a Canadian financial technology company, specializing in fixed income analytics, and based in Toronto, Ontario.
Richard Mitchell McVey is an American entrepreneur who is 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.
EuroCTPB.V. is a joint venture of 14 bourses, intending to tender for the provision of a consolidated tape (CT) for financial trading within the European Union (EU). The selection process, arranged by the European Securities and Markets Authority (ESMA), is scheduled to be finalised in 2025. This forms part of the European Commission's Capital Markets Union.
This page is based on this Wikipedia article Text is available under the CC BY-SA 4.0 license; additional terms may apply. Images, videos and audio are available under their respective licenses.
US$718 million (2022)
US$327 million (2022)
