MarketAxess beats quarterly profit estimates on robust bond trading volumes

MarketAxess Holdings

31/01/2024 12:28

Jan 31 (Reuters) - Bond trading platform MarketAxess
 MKTX.O  reported a better-than-expected profit for the fourth
quarter on Wednesday, as a recovery in markets bolstered bond
trading.
    Growing expectations for a soft landing of the U.S. economy
has led to a bond market rally in recent months buoying trading
volumes.   
    Total credit average daily volumes on the company's platform
rose 8.9% to $13.1 billion, as trading increased in Eurobonds,
municipal bonds, emerging markets, and high-grade products.
    "We are entering 2024 with a more favorable backdrop for
fixed-income," said CEO Chris Concannon.
    The company's commissions rose 8.5% to $171.9 million, as it
benefited from higher market volumes.
    MarketAxess operates an electronic trading platform allowing
institutional investors and broker-dealer firms to trade
corporate bonds and other fixed-income securities.
    Total revenue jumped 10.9% to $197.2 million in the quarter
ended Dec. 31.
    The company reported a net income of $1.84 per share,
compared with analysts' average estimate of $1.73 per share,
according to LSEG data.
    Last month, MarketAxess, Tradeweb, and Bloomberg scrapped
their joint plans to offer a single real-time feed of bond
prices from across Europe to help investors spot the best deals.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shailesh Kuber)
 ((ArasuKannagi.Basil@thomsonreuters.com;))