MarketAxess is ending the year on something of a high after reporting a new daily volume record in high-yield (HY) trading of approximately USD1 billion on Friday, 11 December, 2015.
Recent market volatility has also driven an increase in estimated market share for MarketAxess, with over 10 per cent share of TRACE HY volumes on 11 December, compared to an estimated 5.9 per cent share during the third quarter.
“Recent volatility in high-yield markets has prompted investors and dealers to use electronic trading more than ever. Our all-to-all Open Trading technology allows participants on MarketAxess to seamlessly trade with all other Open Trading participants on the platform. So far in the fourth quarter, 25 per cent of all high-yield volume on MarketAxess has been conducted through Open Trading. During this period, both buyers and sellers of high-yield bonds were able to achieve meaningful transaction cost savings through the ability to transact directly on MarketAxess, with an average cost savings of USD4,170 per million traded,” says Sandy White, High Yield Product Manager.
“In response to post-crisis regulation, we have made significant investments in Open Trading with the belief that credit market participants need new and alternative sources of liquidity. The continued growth of our Open Trading volumes for high-yield trading, especially during periods of volatility, demonstrates that Open Trading provides a valuable source of new secondary market liquidity,” says Richard Schiffman, Open Trading Product Manager, MarketAxess.
