Investors and Dealers Increasingly Leverage MarketAxess for Global Emerging Markets Liquidity
November 06 2018 - 06:00AM
Geopolitical Environment Driving Greater
Volatility and Need for Efficient Access to Global
Markets
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a
leading electronic trading platform for fixed-income securities,
and the provider of market data and post-trade services for the
global fixed-income markets, has seen significant adoption of its
electronic trading capabilities for Emerging Markets debt.
Over $87 billion of Emerging Markets debt was traded over the
MarketAxess platform in the third quarter of 2018, up 22% on the
same period in the prior year. In addition to volume gains,
the number of active Emerging Markets participants reached a record
of 1,024 firms in the third quarter, up 15% from 2017.
In an unstable geopolitical and macroeconomic environment which
has spurred greater volatility across emerging markets, electronic
trading is improving liquidity and transparency. A recent report
produced by Greenwich Associates notes the acceleration of
electronic trading adoption in Emerging Markets amongst U.S.
investors. Greenwich Associates research has found that 70%
of U.S. investors are trading emerging market fixed income products
electronically, amounting to 14% of the notional volume traded by
US-based investors.
Sandy White, Head of Emerging Markets Product Management with
MarketAxess, noted, “Even with the backdrop of a turbulent Emerging
Markets landscape, both investors and dealers are increasingly
utilizing our trading technology to more efficiently tap into the
fixed income market. By connecting global market participants,
MarketAxess is helping to create a truly global liquidity pool and
a more open and transparent marketplace.”
MarketAxess offers liquidity in hard-currency Emerging Markets
products as well as the ability to trade EM debt denominated in 26
global local currencies, with the latest additions including Korean
Won, Colombian Peso, Chilean Peso and Argentine Peso. Local
currency trading has grown to become an increasing proportion of
overall Emerging Markets volumes, and now represents approximately
30% of Emerging Market activity on the MarketAxess platform in the
third quarter of 2018.
MarketAxess has also broadened its capabilities and protocols,
enabling trading desks to have greater control of how they access
liquidity and make prices. For Emerging Market local currency
trading, investors can submit a “Request for Market” (RFM) inquiry
to solicit two-way pricing and support block trading activity.
Year-to-date, over $14.2 billion have traded via the protocol, up
78% from 2017.
MarketAxess is also deeply committed to the quality of life in
emerging market countries. For the last fifteen years,
MarketAxess has hosted an Annual Emerging Markets Charity Trading
Day donating revenues generated from EM trading activity in a
single day to the charities selected by the Emerging Markets
Charity Benefit Committee. Since 2003, MarketAxess has raised
$1.7 million for this cause.
About MarketAxessMarketAxess operates
a leading electronic trading platform that enables fixed income
market participants to efficiently trade corporate bonds and other
types of fixed-income instruments using MarketAxess’ patented
trading technology. Over 1,400 institutional investor and
broker-dealer firms are active users of
the MarketAxess trading platform, accessing global
liquidity in U.S. high-grade corporate bonds, emerging markets and
high-yield bonds, European bonds, U.S. agency bonds, municipal
bonds, credit default swaps and other fixed-income
securities. MarketAxess also offers a number of
trading-related products and services, including: market data to
assist clients with trading decisions; connectivity solutions that
facilitate straight-through processing; technology services to
optimize trading environments; and execution services for
exchange-traded fund managers and other clients. Through its
Trax® division, MarketAxess also offers a range of pre-
and post-trade services, including trade matching, regulatory
transaction reporting and market and reference data, across a range
of fixed-income products. Trax is the trading name
of Xtrakter Ltd., a MarketAxess group company.
MarketAxess maintains its headquarters in New
York and has offices
in London, Boston, Chicago, Los
Angeles, Miami, Salt Lake City, San Francisco, São
Paulo, Hong Kong and Singapore. For more
information, please visit www.marketaxess.com.
Media Relations Contacts:New York:Kyle
WhiteMarketAxess Holdings Inc.+1 212 813 6355
London:Toby WestMarketAxess Holdings Inc.+44 (0)20 7709 3270
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