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, today announced results for the quarter ended
December 31, 2019.
“The fourth quarter results contributed to our
11th straight year of record revenues and earnings with 2019
revenue growth of 17%,” said Rick McVey, Chairman and CEO of
MarketAxess. “We are encouraged by the breadth of growth we see in
our business with record volumes, revenues and active institutional
clients in all four of our core credit products. Investor and
dealer demand for trading automation is fueling a new round of
growth in electronic market share for fixed income trading. Open
Trading is delivering valuable transaction cost savings to our
clients, helping to extend our leadership position in global credit
electronic trading with institutional clients. We are excited about
many new opportunities emerging in new products and new trading
protocols, including our entry into the Rates trading space with
our acquisition of LiquidityEdge.”
Fourth Quarter
Results
Total revenues for the fourth quarter of 2019
increased 15.4% to $129.8 million, compared to $112.4 million for
the fourth quarter of 2018. Operating income was $60.9 million,
compared to $54.0 million for the fourth quarter of 2018, an
increase of 12.8%. Operating margin was 46.9%, compared to 48.0%
for the fourth quarter of 2018. Net income totaled $50.3 million,
or $1.32 per share on a diluted basis, compared to $45.8 million,
or $1.21 per share, for the fourth quarter of 2018.
Commission revenue for the fourth quarter of
2019 increased 15.4% to $117.1 million, compared to $101.4 million
for the fourth quarter of 2018. Variable transaction fees increased
19.3% to $91.3 million for the fourth quarter of 2019, compared to
variable transaction fees of $76.6 million for the fourth quarter
of 2018. Variable transaction fees include approximately $2.5
million of U.S. Treasuries trading commissions generated by
LiquidityEdge since the November 1, 2019 acquisition date. U.S.
high-grade trading volume as a percentage of FINRA’s high-grade
TRACE trading volume increased to an estimated 19.9% for the fourth
quarter of 2019, compared to an estimated 19.3% for the fourth
quarter of 2018.
All other revenue, which consists of information
services, post-trade services and other revenue, increased to $12.7
million, compared to $11.0 million for the fourth quarter of 2018.
The increase in all other revenue was principally due to higher
information services revenue of $1.5 million.
Total expenses for the fourth quarter of 2019
increased 17.9% to $68.9 million, compared to $58.5 million for the
fourth quarter of 2018. The increase in total expenses was largely
due to higher employee compensation and benefit costs, mainly due
to an increase in headcount, of $5.3 million, depreciation and
amortization of $1.9 million, general and administrative costs of
$1.6 million, clearing costs of $1.1 million and professional and
consulting fees of $1.0 million. LiquidityEdge expenses, including
amortization of acquired intangibles expense of $0.4 million and
acquisition-related costs $0.5 million, totaled $3.2 million during
the fourth quarter of 2019. Excluding LiquidityEdge related costs,
total expenses for the quarter were up 12.3%.
The effective tax rate for the fourth quarter of
2019 was 18.9%, compared to 18.3% for the fourth quarter of 2018.
The income tax provision for the fourth quarter of 2019 and 2018
reflected $3.6 million and $1.9 million, respectively, of excess
tax benefits related to share-based compensation awards.
Full Year 2019
Results
Total revenues for the year ended December 31,
2019 increased 17.4% to a record $511.4 million, compared to $435.6
million for 2018. Operating income was a record $250.9 million,
compared to $212.6 million for 2018, an increase of 18.0%.
Operating margin was 49.1%, compared to 48.8% for 2018. Net income
totaled $204.9 million, or $5.40 per share on a diluted basis,
compared to $172.9 million, or $4.57 per share, for 2018.
Commission revenue for the year ended December
31, 2019 increased 18.7% to a record $463.9 million, compared to
$390.8 million for 2018. Variable transaction fees increased 24.9%
to $367.2 million compared to variable transaction fees of $293.9
million for 2018. U.S. high-grade trading volume as a percentage of
FINRA’s high-grade TRACE trading volume increased to an estimated
19.0%, compared to an estimated 18.1% for 2018.
All other revenue increased 6.2% to $47.5
million in 2019, compared to $44.7 million for 2018. The increase
in all other revenue was principally due to higher information
services revenue of $2.5 million.
Total expenses for the year ended December 31,
2019 increased 16.8% to $260.5 million, compared to $223.0 million
for 2018. The increase in total expenses was principally due to
higher employee compensation and benefits costs, mainly due to an
increase in headcount, of $22.0 million, general and administrative
costs of $4.3 million, depreciation and amortization of $3.8
million, professional and consulting fees of $4.0 million and
clearing costs of $3.6 million offset by a decrease in occupancy
costs of $2.5 million. LiquidityEdge expenses, including
amortization of acquired intangibles expense of $0.4 million and
acquisition-related costs of $1.1 million, totaled $3.8 million
during 2019. Excluding LiquidityEdge related costs, total expenses
for the year were up 15.1%.
The effective tax rate for 2019 was 20.4%,
compared to 20.7% for 2018. The income tax provision for 2019 and
2018 reflected $10.6 million and $5.6 million, respectively, of
excess tax benefits related to share-based compensation
awards.
Employee headcount was 527 as of December 31,
2019 compared to 454 as of December 31, 2018. The increase in
headcount was due to the continued investment in the Company’s
growth initiatives, including geographic expansion, trading
automation, new trading protocols and the transition to
self-clearing.
Dividend
The Company’s board of directors declared a cash
dividend of $0.60 per share of common stock outstanding, to be paid
on February 26, 2020 to stockholders of record as of the close of
business on February 12, 2020.
Share
Repurchases
A total of 15,900 shares were repurchased in the
fourth quarter of 2019 at a cost of $5.8 million.
Balance Sheet
Data
As of December 31, 2019, total assets were
$954.9 million and included $500.6 million in cash, cash
equivalents and investments. Total stockholders’ equity as of
December 31, 2019 was $770.1 million.
Guidance for
2020
For 2020, the Company is providing the following
guidance:
- Expenses are expected to be in the
range of $297.0 million to $314.0 million and includes a full year
of LiquidityEdge expenses estimated to range between $18.0 million
to $22.0 million. LiquidityEdge expenses are expected to include
amortization expense on acquired intangible assets of $2.8 million
and variable clearing and technology expenses that will be
approximately 50% of trading revenue. Excluding LiquidityEdge
expenses, the midpoint in the guidance range would represent an
approximate 11% year-over-year increase in expenses.
- Capital expenditures are expected
to be in the range of $44.0 million to $49.0 million and includes
an expected increase in capitalized software development and
approximately $7.0 million of buildout costs for additional office
space in London.
- The Company’s overall effective tax
rate is expected to be between 20.0% to 22.0% and includes the
estimated impact of excess tax benefits on share-based compensation
awards.
Non-GAAP Financial Measures and
Other Items
To supplement the Company’s unaudited financial
statements presented in accordance with generally accepted
accounting principles (“GAAP”), the Company uses certain non-GAAP
measures of financial performance, including earnings before
interest, taxes, depreciation and amortization (“EBITDA”) and free
cash flow. The Company believes that these non-GAAP financial
measures, when taken into consideration with the corresponding GAAP
financial measures, are important in understanding the Company's
operating results. See the attached schedule for a reconciliation
of GAAP net income to EBITDA and GAAP cash flow from operating
activities to free cash flow.
Webcast and Conference Call
Information
Rick McVey, Chairman and Chief Executive
Officer, Chris Concannon, President and Chief Operating
Officer and Tony DeLise, Chief Financial Officer, will host a
conference call to discuss the Company’s financial results and
outlook on Wednesday, January 29, 2020 at 10:00 a.m.
EST. To access the conference call, please dial 855-425-4206 (U.S.)
or 484-756-4249 (international). The Company will also host a live
audio Webcast of the conference call on the Investor Relations
section of the Company's website at
http://investor.marketaxess.com. A replay of the call will be made
available by dialing 855-859-2056 (U.S.) or 404-537-3406
(international) and using the conference ID: 9129259 for one week
after the announcement. The Webcast will also be archived on
http://investor.marketaxess.com for 90 days following the
announcement.
About MarketAxess
MarketAxess operates a leading, institutional
electronic trading platform delivering expanded liquidity
opportunities, improved execution quality and significant cost
savings across global fixed-income markets. A global network of
over 1,700 firms, including the world’s leading asset managers and
institutional broker-dealers, leverages MarketAxess’ patented
trading technology to efficiently trade bonds. MarketAxess’
award-winning Open Trading™ marketplace is regarded as the
preferred all-to-all trading solution in the global credit markets,
creating a unique liquidity pool for a broad range of credit market
participants. Drawing on its deep data and analytical resources,
MarketAxess provides automated trading solutions, market data
products and a range of pre- and post-trade services.
MarketAxess is headquartered in New York and has
offices in London, Amsterdam, Boston, Chicago, Los Angeles, Miami,
Salt Lake City, San Francisco, São Paulo, Hong Kong and Singapore.
For more information, please visit www.marketaxess.com.
Cautionary Note Regarding
Forward-Looking Statements
This press release may contain forward-looking
statements, including statements about the outlook and prospects
for Company and industry growth, as well as statements about the
Company’s future financial and operating performance. These and
other statements that relate to future results and events are based
on MarketAxess’ current expectations. The Company’s actual results
in future periods may differ materially from those currently
expected or desired because of a number of risks and uncertainties,
including: global economic, political and market factors; the
volatility of financial services markets generally; the level of
trading volume transacted on the MarketAxess platform; the absolute
level and direction of interest rates and the corresponding
volatility in the corporate fixed-income market; the level and
intensity of competition in the fixed-income electronic trading
industry and the pricing pressures that may result; the variability
of our growth rate; the rapidly evolving nature of the electronic
financial services industry; our ability to introduce new fee plans
and our clients’ response; our exposure to risks resulting from
non-performance by counterparties to transactions executed between
our clients in which we act as an intermediary in matched principal
trades; our dependence on our broker-dealer clients; the loss of
any of our significant institutional investor clients; our ability
to develop new products and offerings and the market’s acceptance
of those products; the effect of rapid market or technological
changes on us and the users of our technology; our ability to
successfully maintain the integrity of our trading platform and our
response to system failures, capacity constraints and business
interruptions; our vulnerability to cyber security risks; our
ability to protect our intellectual property rights or technology
and defend against intellectual property infringement or other
claims; our ability to enter into strategic alliances and to
acquire other businesses and successfully integrate them with our
business; our ability to comply with new and existing laws, rules
and regulations both domestically and internationally; our ability
to maintain effective compliance and risk management methods; the
strain of growth initiatives on management and other resources; our
future capital needs and our ability to obtain capital when needed;
limitations on our operating flexibility contained in our credit
agreement; and other factors. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. More information about
these and other factors affecting MarketAxess’ business and
prospects is contained in MarketAxess’ periodic filings with the
Securities and Exchange Commission and can be accessed at
www.marketaxess.com.
Media and Investor Relations Contacts:
David
Cresci |
William
McBride |
MarketAxess Holdings Inc. |
RF|Binder |
+1-212-813-6027 |
+1-917-239-6726 |
|
|
Kyle White |
|
MarketAxess Holdings Inc. |
|
+1-212-813-6355 |
|
MarketAxess
Holdings Inc. |
Consolidated
Statements of Operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Year
Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands, except per share data) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions |
$ |
117,103 |
|
|
$ |
101,436 |
|
|
$ |
463,856 |
|
|
$ |
390,834 |
|
Information services |
|
8,515 |
|
|
|
7,057 |
|
|
|
30,730 |
|
|
|
28,227 |
|
Post-trade services |
|
3,923 |
|
|
|
3,675 |
|
|
|
15,763 |
|
|
|
15,346 |
|
Other |
|
233 |
|
|
|
276 |
|
|
|
1,003 |
|
|
|
1,158 |
|
Total revenues |
|
129,774 |
|
|
|
112,444 |
|
|
|
511,352 |
|
|
|
435,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Employee compensation and benefits |
|
33,117 |
|
|
|
27,802 |
|
|
|
131,079 |
|
|
|
109,117 |
|
Depreciation and amortization |
|
7,730 |
|
|
|
5,848 |
|
|
|
26,857 |
|
|
|
23,080 |
|
Technology and communications |
|
7,155 |
|
|
|
6,415 |
|
|
|
26,792 |
|
|
|
23,866 |
|
Professional and consulting fees |
|
6,389 |
|
|
|
5,353 |
|
|
|
25,534 |
|
|
|
21,521 |
|
Occupancy |
|
3,090 |
|
|
|
3,844 |
|
|
|
11,639 |
|
|
|
14,176 |
|
Marketing and advertising |
|
3,087 |
|
|
|
3,534 |
|
|
|
11,559 |
|
|
|
12,114 |
|
Clearing costs |
|
3,345 |
|
|
|
2,257 |
|
|
|
11,314 |
|
|
|
7,754 |
|
General and administrative |
|
5,010 |
|
|
|
3,426 |
|
|
|
15,696 |
|
|
|
11,353 |
|
Total expenses |
|
68,923 |
|
|
|
58,479 |
|
|
|
260,470 |
|
|
|
222,981 |
|
Operating income |
|
60,851 |
|
|
|
53,965 |
|
|
|
250,882 |
|
|
|
212,584 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income |
|
1,767 |
|
|
|
1,926 |
|
|
|
8,063 |
|
|
|
6,112 |
|
Other, net |
|
(661 |
) |
|
|
175 |
|
|
|
(1,521 |
) |
|
|
(610 |
) |
Total other income |
|
1,106 |
|
|
|
2,101 |
|
|
|
6,542 |
|
|
|
5,502 |
|
Income before income taxes |
|
61,957 |
|
|
|
56,066 |
|
|
|
257,424 |
|
|
|
218,086 |
|
Provision
for income taxes |
|
11,684 |
|
|
|
10,235 |
|
|
|
52,522 |
|
|
|
45,234 |
|
Net
income |
$ |
50,273 |
|
|
$ |
45,831 |
|
|
$ |
204,902 |
|
|
$ |
172,852 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per
Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.35 |
|
|
$ |
1.24 |
|
|
$ |
5.53 |
|
|
$ |
4.68 |
|
Diluted |
$ |
1.32 |
|
|
$ |
1.21 |
|
|
$ |
5.4 |
|
|
$ |
4.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per common share |
$ |
0.51 |
|
|
$ |
0.42 |
|
|
$ |
2.04 |
|
|
$ |
1.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
37,176 |
|
|
|
36,978 |
|
|
|
37,083 |
|
|
|
36,958 |
|
Diluted |
|
38,091 |
|
|
|
37,845 |
|
|
|
37,956 |
|
|
|
37,855 |
|
MarketAxess
Holdings Inc. |
Commission
Revenue Details |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Year
Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Commissions Revenue |
|
|
(In thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transaction
Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. high-grade |
$ |
43,120 |
|
|
$ |
37,089 |
|
|
$ |
173,944 |
|
|
$ |
144,642 |
|
Other credit 1 |
|
45,238 |
|
|
|
38,868 |
|
|
|
188,514 |
|
|
|
147,148 |
|
Total credit |
|
88,358 |
|
|
|
75,957 |
|
|
|
362,458 |
|
|
|
291,790 |
|
Rates 2 |
|
2,983 |
|
|
|
593 |
|
|
|
4,722 |
|
|
|
2,146 |
|
Total transaction fees |
|
91,341 |
|
|
|
76,550 |
|
|
|
367,180 |
|
|
|
293,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distribution
Fees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. high-grade |
|
18,647 |
|
|
|
18,615 |
|
|
|
71,885 |
|
|
|
72,135 |
|
Other credit1 |
|
7,029 |
|
|
|
6,110 |
|
|
|
24,347 |
|
|
|
24,077 |
|
Total credit |
|
25,676 |
|
|
|
24,725 |
|
|
|
96,232 |
|
|
|
96,212 |
|
Rates2 |
|
86 |
|
|
|
161 |
|
|
|
444 |
|
|
|
686 |
|
Total distribution fees |
|
25,762 |
|
|
|
24,886 |
|
|
|
96,676 |
|
|
|
96,898 |
|
Total commissions |
$ |
117,103 |
|
|
$ |
101,436 |
|
|
$ |
463,856 |
|
|
$ |
390,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Variable Transaction Fee Per Million |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
high-grade - fixed-rate |
$ |
177.27 |
|
|
$ |
160.52 |
|
|
$ |
171.06 |
|
|
$ |
160.63 |
|
U.S.
high-grade - floating-rate |
|
53.64 |
|
|
|
69.53 |
|
|
|
63.15 |
|
|
|
87.22 |
|
Total U.S. high-grade |
|
170.36 |
|
|
|
154.12 |
|
|
|
164.44 |
|
|
|
155.84 |
|
Other credit
1 |
|
191.36 |
|
|
|
207.55 |
|
|
|
193.45 |
|
|
|
201.05 |
|
Total credit |
|
180.5 |
|
|
|
177.5 |
|
|
|
178.35 |
|
|
|
175.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates2 |
|
4.81 |
|
|
|
41.34 |
|
|
|
7.16 |
|
|
|
40.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other credit
includes high-yield, emerging markets, Eurobonds and municipal
bonds. |
|
2 Rates includes U.S.
Government bonds, agencies and other government bonds. |
|
|
|
|
|
MarketAxess
Holdings Inc. |
Consolidated
Condensed Balance Sheet Data |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of |
|
|
December 31, 2019 |
|
|
December 31, 2018 |
|
|
|
|
|
|
|
|
(In
thousands) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
270,124 |
|
|
$ |
246,322 |
|
Investments, at fair value |
|
230,477 |
|
|
|
240,105 |
|
Accounts receivable, net |
|
62,017 |
|
|
|
57,535 |
|
Goodwill and intangible assets, net |
|
207,846 |
|
|
|
62,675 |
|
Furniture, equipment, leasehold improvements and
capitalized software, net |
|
71,795 |
|
|
|
63,010 |
|
Operating lease right-of-use assets |
|
81,399 |
|
|
|
— |
|
Prepaid expenses and other assets |
|
30,771 |
|
|
|
22,468 |
|
Deferred tax assets, net |
|
501 |
|
|
|
3,424 |
|
Total assets |
$ |
954,930 |
|
|
$ |
695,539 |
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Accrued employee compensation |
$ |
47,365 |
|
|
$ |
39,053 |
|
Income and other tax liabilities |
|
16,690 |
|
|
|
16,432 |
|
Deferred revenue |
|
3,499 |
|
|
|
2,810 |
|
Accounts payable, accrued expenses and other liabilities |
|
19,294 |
|
|
|
29,366 |
|
Operating lease liabilities |
|
97,991 |
|
|
|
— |
|
Total liabilities |
|
184,839 |
|
|
|
87,661 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
|
|
|
|
|
|
Common stock |
|
122 |
|
|
|
122 |
|
Additional paid-in capital |
|
342,541 |
|
|
|
341,860 |
|
Treasury stock |
|
(153,388 |
) |
|
|
(184,962 |
) |
Retained earnings |
|
591,086 |
|
|
|
463,252 |
|
Accumulated other comprehensive loss |
|
(10,270 |
) |
|
|
(12,394 |
) |
Total stockholders' equity |
|
770,091 |
|
|
|
607,878 |
|
Total liabilities and stockholders' equity |
$ |
954,930 |
|
|
$ |
695,539 |
|
MarketAxess
Holdings Inc. |
Reconciliation of Non-GAAP Financial
Measures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Year
Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Before Interest, Taxes, Depreciation and
Amortization |
|
|
(In thousands) |
|
|
(unaudited) |
|
Net
income |
$ |
50,273 |
|
|
$ |
45,831 |
|
|
$ |
204,902 |
|
|
$ |
172,852 |
|
Add
back: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Provision for income taxes |
|
11,684 |
|
|
|
10,235 |
|
|
|
52,522 |
|
|
|
45,234 |
|
Depreciation and amortization |
|
7,730 |
|
|
|
5,848 |
|
|
|
26,857 |
|
|
|
23,080 |
|
Earnings before interest, taxes, depreciation
and amortization |
$ |
69,687 |
|
|
$ |
61,914 |
|
|
$ |
284,281 |
|
|
$ |
241,166 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Free Cash Flow |
|
|
(In thousands) |
|
|
(unaudited) |
|
Cash
flows from operating activities |
$ |
89,141 |
|
|
$ |
70,105 |
|
|
$ |
265,935 |
|
|
$ |
223,917 |
|
Exclude: Net change in trading investments |
|
(4,416 |
) |
|
|
5,815 |
|
|
|
(4,045 |
) |
|
|
(856 |
) |
Less: Purchases of furniture, equipment and leasehold
improvements |
|
(3,609 |
) |
|
|
(12,067 |
) |
|
|
(12,292 |
) |
|
|
(35,888 |
) |
Less: Capitalization of software development costs |
|
(8,545 |
) |
|
|
(2,534 |
) |
|
|
(22,408 |
) |
|
|
(11,705 |
) |
Free
cash flow |
$ |
72,571 |
|
|
$ |
61,319 |
|
|
$ |
227,190 |
|
|
$ |
175,468 |
|
MarketAxess
Holdings Inc. |
Volume
Statistics* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended |
|
|
Year
Ended |
|
|
December 31, |
|
|
December 31, |
|
|
2019 |
|
|
2018 |
|
|
2019 |
|
|
2018 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Trading Volume |
|
|
(In millions) |
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
high-grade - fixed-rate |
$ |
238,959 |
|
|
$ |
223,737 |
|
|
$ |
992,844 |
|
|
$ |
867,518 |
|
U.S.
high-grade - floating-rate |
|
14,150 |
|
|
|
16,915 |
|
|
|
64,980 |
|
|
|
60,654 |
|
Total U.S. high-grade |
|
253,109 |
|
|
|
240,652 |
|
|
|
1,057,824 |
|
|
|
928,172 |
|
Other
credit |
|
236,403 |
|
|
|
187,274 |
|
|
|
974,494 |
|
|
|
731,888 |
|
Total credit |
|
489,512 |
|
|
|
427,926 |
|
|
|
2,032,318 |
|
|
|
1,660,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates |
|
620,437 |
|
|
|
14,345 |
|
|
|
659,548 |
|
|
|
53,479 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Daily Volume |
|
|
(In millions) |
|
|
(unaudited) |
|
U.S.
high-grade |
$ |
4,082 |
|
|
$ |
3,945 |
|
|
$ |
4,231 |
|
|
$ |
3,728 |
|
Other
credit |
|
3,783 |
|
|
|
3,037 |
|
|
|
3,886 |
|
|
|
2,929 |
|
Total credit |
|
7,865 |
|
|
|
6,982 |
|
|
|
8,117 |
|
|
|
6,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rates |
|
10,007 |
|
|
|
234 |
|
|
|
2,638 |
|
|
|
214 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
U.S. Trading Days 1 |
|
62 |
|
|
|
61 |
|
|
|
250 |
|
|
|
249 |
|
Number of
U.K. Trading Days 2 |
|
64 |
|
|
|
64 |
|
|
|
253 |
|
|
|
253 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 The number of U.S.
trading days is based on the SIFMA holiday recommendation
calendar. |
|
2 The number of U.K.
trading days is based on the U.K. Bank holiday schedule. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Consistent with FINRA
TRACE reporting standards, both sides of trades are included in the
Company's reported volumes when the Company executes trades on a
matched principal basis between two counterparties. Consistent with
industry standards, U.S. Government Bond trades are
single-counted. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MarketAxess (NASDAQ:MKTX)
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