Fixed Income Trading Platforms - June Metrics
Monthly Recap of Fixed Income Trading Platform Volumes and Market Share Statistics
This morning, both MKTX 0.00%↑ and TW 0.00%↑ reported monthly volume statistics for June. For the fixed income trading platforms, volumes generally declined M/M but were higher Y/Y. For MKTX, ADV declined 7% M/M but increased 18% Y/Y to $43.1B. For TW, ADV declined 3% M/M but increased 26% Y/Y to $2.4T.
MarketAxess Holdings Inc. (MKTX)
MKTX reported total credit ADV for June of $15.7B, which was down 4% M/M but up 12% Y/Y. U.S. High Grade (USHG) ADV came in at $7.0B (-9% M/M, +6% Y/Y) while U.S. High Yield (USHY) ADV came in at $1.5B (-7% M/M, +20% Y/Y). EM ADV ended the month at $4.2B (+15% M/M, +16% Y/Y), while Eurobonds finished the month at $2.4B (-16% M/M, +20% Y/Y) and other credit ADV came in at $580M (-5% M/M, +4% Y/Y).
Total rates ADV for the month came in at $27.4B (-8% M/M, +22% Y/Y). Muni bond ADV finished the month at $579M (-5% M/M, +6% Y/Y) while U.S. Government bond ADV came in at $25.8B (-9% M/M, +20% Y/Y) and other rates ADV finished June at $1.6B (+3% M/M, +76% Y/Y).
In terms of MKTX reported market share statistics, MKTX picked up 41bps of market share in USHG trading for the month (-21bps Y/Y), finishing June with market share of 19.7%. Within USHY, MKTX reported market share of 12.4% (+21bps M/M, -152bps Y/Y). In terms of U.S. Government bonds, MKTX reported market share of 2.5% (-3bps M/M, +17bps Y/Y) as MKTX continues to pick up market share within this product category on a Y/Y basis. Meanwhile, market share of Muni bonds came in at 5.7% (-27bps M/M, -213bps Y/Y).
MKTX also provided commentary on fee per million (FPM) statistics for the month, noting that credit fee per million came in at $137 for June (-1% M/M, -7% Y/Y) while rates fee per million came in at $3.93 (-3% M/M, -9% Y/Y). MKTX attributed the Y/Y decline in credit fee per million to protocol mix while the decline in rates fee per million was attributed to product mix. For the full quarter, credit FPM came in at $138 (-1% Q/Q, -7% Y/Y) while rates FPM came in at $3.90 (-7% Q/Q, -12% Y/Y).
Based on these results, I did raise my EPS estimate for the quarter a bit to reflect the continuation of strong volumes through quarter end.
MKTX Reported Monthly ADV and Market Share Statistics
Source: company documents
Tradeweb Markets Inc. (TW)
TW reported total rates ADV for June of $1.3T (-5% M/M, +7% Y/Y) as cash rates ADV came in at $517B (-2% M/M, +7% Y/Y) and derivatives ADV came in at $829B (-7% M/M, +6% Y/Y).
Total credit ADV for the month was $29B (-16% M/M, -6% Y/Y) with cash rates ADV of $11B (-1% M/M, +12% Y/Y) and derivatives ADV of $18B (-24% M/M, -15% Y/Y).
Equities ADV ended the month at $24B (+3% M/M, +6% Y/Y) as cash equities ADV came in at $11B (-10% M/M, +1% Y/Y) and derivatives ADV finished the month at $13B (+16%M/M, +10% Y/Y).
Money markets ADV finished June at $1.0T (-1% M/M, +68% Y/Y). In its press release, TW noted that excluding its acquisition of ICD, which closed on August 1, 2024, total ADV would have been up 13.0% Y/Y vs. the reported +26% Y/Y, which implies that money markets ADV would have increased 27% Y/Y, excluding the impact of ICD.
In terms of TW reported market share statistics, TW picked up 167bps of market share in USHG trading for the month (+57bps Y/Y), finishing June with market share of 19.6%. Within USHY, TW reported market share of 8.0% (-23bps M/M, +3bps Y/Y). This marked the 9h consecutive month of Y/Y share gains within USHY trading for TW.
TW also provided commentary on preliminary 2Q25 fee per million (FPM) statistics as well as fixed fees across a number of asset classes. Blended FPM across all asset classes was $2.30, unchanged Q/Q (-6% Y/Y). Meanwhile, preliminary fixed fees for rates, credit, equities and money markets came in at $93.8M (+10% Q/Q, +25% Y/Y).
Based on these results, I raised my EPS estimate for 2Q25 to account for the continued strong volume environment as well as solid FPM and fixed fee commentary.
TW Reported Monthly ADV and Market Share Statistics
Source: company documents
U.S. High Grade and U.S. High Yield Credit Market Share
When comparing market share of USHG and USHY credit between the two companies, both report ever so slightly different figures for TRACE volumes (industry volume from FINRA) each month. I’ve found it easiest to just compare reported ADV between MKTX and TW and look at which of the two is gaining relative to the other. Note, for this exercise we compare MKTX reported USHG and USHY volumes versus TW reported fully electronic USHG and fully electronic USHY volume.
Based on this view of market share, we can see that volumes between the two companies within USHG converged around 1Q25 and have been roughly evenly split since, with share bouncing back and forth a bit each month. Within USHY, MKTX still commands about 60% of total volume between the two, which has remained fairly stable since around 3Q24 after narrowing significantly between 2020 and mid-2024.
MKTX vs. TW USHG Credit Market Share
Source: company documents
MKTX vs. TW USHY Credit Market Share
