Market Share Dilemmas: Contradictory Insights from MarketAxess' Q1 2025 Earnings Call

None



Revenue and Product Diversification:
- MarketAxess reported record commission revenue in international and new product areas like emerging markets, municipals, and U.S. government bonds, with U.S. government bonds generating a single-day trading record of $102 billion.
- The growth was driven by increased velocity and institutional clients leveraging new rates algos.

Portfolio Trading and Market Share Expansion:
- The company achieved record portfolio trading ADV, with U.S. high-grade market share increasing to 19% and U.S. high yield to 18%, indicating significant market share gains.
- This expansion was due to strong demand for liquidity solutions during periods of high volatility, especially in the ETF market.

Block Trading and Block Solutions:
- MarketAxess saw increased block trading across U.S. high-grade, emerging markets, and Eurobonds, with a cumulative block trading volume of $4 billion since the launch of targeted solutions.
- The growth was supported by client outreach and the rollout of a high-touch block trading solution for wider client engagement.

Expansion in Alternative Liquidity Providers:
- The company experienced record volumes from alternative market makers and hedge funds, with demand for all-to-all RFQ solutions.
- This growth is attributed to clients seeking liquidity solutions and lower settlement risks, particularly in the ETF market.