MarketAxess Holdings rises as ‘credit volumes tracking above 4Q estimates’

MarketAxess Holdings (MKTX) is rallying in early Tuesday trading after the company announced its monthly volume statistics for November, noting a record total credit trading volume.

MKTX shares are up more than 6% at the time of writing, trading close to the $253 per share mark.

Its record total credit trading volume came in at $303.3 billion, while it also reported a record Eurobonds trading volume of $43.7 billion and a record municipal bond trading volume of $12.6 billion.

The company also reported a total credit average daily trading volume of $14.3 billion, up 9.3% versus the prior year and up 13.4% versus October 2023 levels. MKTX’s performance during the month was driven by strong growth across all credit products.

“The adoption of MarketAxess X-Pro continues to expand, with 30% of our portfolio trading volume executed over the X-Pro platform quarter-to-date, up from 18% in third quarter 2023,” said Chris Concannon, CEO of MarketAxess. “We believe that the continued improvement in the market backdrop, and the high levels of client engagement with X-Pro, our unique proprietary data products, and our automated trading solutions, position us for growth in the coming quarters.”

Following the data release, analysts noted that credit volumes are tracking above fourth-quarter estimates.

“MKTX reported monthly volumes this morning. Nov credit volumes are up +9.3% y/y and up +13.4% m/m,” analysts maintained an Equal-Weight rating and $284 price target on the stock.

“Credit volumes through Nov are tracking +5% above MSe and +9% above cons for 4Q23. Market share loss of -230bps y/y in HY, but gains of +10bps y/y in IG. Credit FPM of $157 in Nov, up from $153 in Oct,” they added.