MarketAxess : Q4 2021 Earnings slides

Published: 2022-01-26 09:57:10 ET MKTX

Q4 2021 Conference Call and Webcast

January 26, 2022

Strategic Update

2

Executing on the MarketAxess Growth Strategy in 20211

INCREASED PENETRATION IN CORE PRODUCTS

EXPANDED INTO NEW PRODUCTS

EXPANDED TRADING PROTOCOLS/LEVERAGED THE OPEN TRADING NETWORK

GREW OUR BUSINESS THROUGH GEOGRAPHIC DIVERSIFICATION

1. All period comparisons are full year 2021 versus 2020.

3

Full Year 2021 Results Reflect Continued Long-Term Growth

ANNUAL REVENUE AND

CAGRS

OPERATING INCOME

2-YR5-YR10-YR

Revenue

17%

14%

15%

Revenue

Operating Income

millions)

Operating Income

16%

12%

15%

$700

$300 ($millions)

$400

$600

RevenueAnnual($

$500

IncomeOperatingAnnual

2016

2017

2018

2019

2020

2021

$400

$200

$300

$200

$100

$100

--

--

$3002

YEAR NON-U.S. CORP. REVENUE GROWTH

2-YR CAGRS

24%

$250

Total Non-U.S. Corp.:

$39

Post-Trade Services:

57%

$200

Information Services:

11%

$38

U.S Treasuries:

134%

$16

$13

$150

$19

Municipal Bonds:

87%

$2

$31

$39

$100

Eurobonds:

15%

$5

$30

$104

Emerging Markets:

15%

$50

$79

$-

2019

2021

COMMENTARY

ACTIVE CLIENT FIRMS

Active International Clients

Clients Trading 3 or More Products

Total Active Clients

2,100

1721

1823

1877

1538

1,600

clients

1375

1,100

978

899 996

956 1047

# of

744 850

794

830

600 563

100

2017

2018

2019

2020

2021

1. Estimated liquidity taker cost savings is defined as the difference between the winning price and the best disclosed dealer cover price. Estimated liquidity provider cost savings is defined as the difference between the winning price and then current Composite+ bid or offer level (offer if the provider is buying, bid if provider is selling) at the time of the inquiry.

4

Market Conditions and U.S. Credit

LIQUID U.S. CORPORATE INDEX (LUCI)

Benchmark Spreads

3 Month Rolling Volatility

scale)

210

12.8

Spreads (bps)

190

Volatility (% log

6.4

170

3.2

150

1.6

130

Benchmark

110

0.8

Month Rolling

0.4

90

70

0.2

50

0.1

3

4Q11

2Q12

4Q12

2Q13

4Q13

2Q14

4Q14

2Q15

4Q15

2Q16

4Q16

2Q17

4Q17

2Q18

4Q18

2Q19

4Q19

2Q20

4Q20

2Q21

4Q21

U.S. HIGH-GRADE & U.S HIGH-YIELD TRACE VOLUME

U.S. High-Grade

U.S. High-Yield

3,000

billions)$

2,500

2,000

(in

1,500

Volume

1,000

500

--

Q4 YoY Change

HG TRACE: -6%

HY TRACE: -5%

Source: Credit Suisse Global Credit Strategy

COMBINED ESTIMATED U.S. HIGH-GRADE AND U.S. HIGH-YIELD MARKET SHARE

22%

Share

20%

18%

Market

16%

14%

Estimated

12%

10%

8%

6%

4%

4Q11

2Q12

4Q12

2Q13

4Q13

2Q14

4Q14

2Q15

4Q15

2Q16

4Q16

2Q17

4Q17

2Q18

4Q18

2Q19

4Q19

2Q20

4Q20

2Q21

4Q21

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Source: BondTicker

10 YEAR & 2 YEAR TREASURY YIELD & MKTX U.S HIGH-GRADE WEIGHTED AVG. YEARS TO MATURITY

2Y TSY

10Y TSY

Weighted Avg. Years to Maturity

TreasuryYield

3.0%

10.5

1.0%

YearsAvg.toMaturity

2.5%

10.0

2.0%

9.5

9.0

1.5%

8.5

8.0

Weighted

0.5%

7.5

--

7.0

1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Source: Federal Reserve

5

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Disclaimer

MarketAxess Holdings Inc. published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 14:56:08 UTC.