MarketAxess reports record U.S. credit portfolio trading market share

NEW YORK - MarketAxess Holdings Inc. (NASDAQ:MKTX), a profitable financial technology company with a market capitalization of $6.4 billion, reported a record 22.5% market share in U.S. credit portfolio trading for September 2025, despite experiencing a decline in overall U.S. high-grade market share amid high levels of new issuance activity. According to InvestingPro analysis, the company’s stock is currently trading near its 52-week low, potentially presenting an opportunity for value investors.

The electronic fixed-income trading platform operator, maintaining strong financial health with a robust current ratio of 7.55 and minimal debt-to-equity of 0.05, saw its U.S. high-yield portfolio trading market share reach a record 25.9% in September, representing a 730 basis point increase year-over-year.

Total portfolio trading average daily volume (ADV) grew 20% year-over-year to $1.4 billion in the third quarter, while dealer-initiated ADV increased 18% to $1.5 billion. The company also reported strong growth in block trading, with emerging markets and eurobonds block trading ADV rising 20% and 58% respectively compared to the same period last year.

"Despite historic levels of new issuance in U.S. credit in September, which dampened our estimated market share in the month, we set a new record for U.S. credit portfolio trading ADV and market share," said Chris Concannon, CEO of MarketAxess.

The company’s total credit average variable transaction fees per million (FPM) was $140 for the third quarter, down 6% from $149 in the third quarter of 2024, primarily due to protocol mix. Total rates FPM remained flat year-over-year at $4.15.

MarketAxess also reported record emerging markets hard currency trading ADV with a 13% increase, contributing to 9% year-over-year growth in combined emerging markets and eurobonds ADV for September.

Total credit trading ADV was $14.5 billion for the third quarter, a 3% increase from the same period last year, while total rates trading ADV declined 8% to $24.3 billion.

The company noted that September 30 marked its highest single-day credit trading volume ever on the platform.

Based on a press release statement from MarketAxess Holdings Inc. The company has maintained dividend payments for 17 consecutive years, with a current dividend yield of 1.78%. InvestingPro subscribers have access to 8 additional key insights about MKTX, along with comprehensive financial metrics and expert analysis in the Pro Research Report, which helps investors make more informed decisions about this established fintech player.

In other recent news, MarketAxess Holdings Inc. reported its second-quarter 2025 earnings, with earnings per share surpassing expectations. Despite the strong performance, the company’s stock saw a decline in pre-market trading. Additionally, MarketAxess launched Axess IQ Connect, a web-based application aimed at wealth management advisors, providing them with real-time access to fixed-income market data. This new tool is designed to enhance connectivity between client advisors and trading desks, offering live market insights powered by the company’s AI-driven pricing engine, CP+.

In another development, Jefferies adjusted its price target for MarketAxess to $208 from $217, while maintaining a Hold rating on the stock. This revision was influenced by the company’s second-quarter results and July volume report, leading Jefferies to lower its earnings per share estimates for the remainder of 2025 by 3% and for 2026 by 1%. These recent developments provide investors with a comprehensive view of MarketAxess’s current position and future prospects.

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