MarketAxess Launches Mid-X in US Credit: Enhancing Mid-Point Matching Protocol for IG and HY Bonds

MarketAxess has launched Mid-X in US Credit, an enhanced mid-point matching protocol, for US IG and HY Bonds. The protocol is powered by CP+, an AI-powered real-time predictive pricing engine, and includes a new one-step submit and trade protocol. Mid-X sessions have seen a 70% volume increase in emerging markets and eurobonds since its launch last year. The move aims to increase liquidity, workflow efficiency, and provide dealers with better tools to recycle risk generated by portfolio trading.

MarketAxess Holdings Inc. has announced the launch of its Mid-X protocol in the US credit market, specifically targeting US investment-grade (IG) and high-yield (HY) bonds. This latest enhancement to MarketAxess' dealer-initiated protocols aims to boost liquidity access, workflow efficiency, and provide dealers with advanced tools to manage risk generated by increased portfolio trading.

The Mid-X protocol, scheduled for release in September 2025, will be powered by CP+, an AI-powered real-time predictive pricing engine. This engine will be integrated with a new one-step submit and trade protocol, designed to reduce execution friction and streamline the trading process. According to MarketAxess, the protocol's launch is a response to the current market environment, which demands easier access to liquidity and better tools for dealers to manage their risk.

The new offering follows the successful launch of the Mid-X protocol for emerging markets and eurobonds last year. Since then, the firm has reported a 70% increase in trading volumes for Mid-X matching sessions in these markets during Q2 2025 compared to the same period in 2024. This success suggests that the Mid-X protocol is well-received and effective in enhancing trading efficiency and liquidity.

Steve Tait, head of US dealer execution business at MarketAxess, commented on the launch, stating, "Today’s market environment calls for easier access to liquidity, increased workflow efficiency, and better tools for dealers to recycle risk generated by increased portfolio trading." He added, "By providing dealers with the level of support, tools, and technology on par with what they are receiving from sales desks and inter-dealer brokers, we believe that we have been able to create a more inclusive trading environment where dealers feel increasingly comfortable engaging with our growing list of protocols and enhancements."

MarketAxess' expansion into the US credit market aligns with the broader industry trend of embracing technological innovation to enhance trading efficiency. The fixed-income market, historically characterized by its complexity and opacity, is undergoing a significant transformation driven by advancements in AI and algorithmic trading. MarketAxess' Mid-X protocol is at the forefront of this transformation, positioning the firm as a key innovator in AI-powered fixed-income trading.

References:
[1] https://www.thetradenews.com/marketaxess-to-launch-mid-x-protocol-in-us-credit/
[2] https://www.stocktitan.net/news/MKTX/market-axess-announces-the-launch-of-mid-x-in-us-yjxe0isj5qmu.html
[3] https://www.ainvest.com/news/marketaxess-mid-expansion-revolutionizing-credit-markets-enhanced-liquidity-protocols-2508/