MarketAxess achieved better-than-expected second-quarter earnings because market volatility reached new heights which led to record trading volumes. The company delivered $2 in adjusted profit which exceeded expectations while achieving $49 billion in total average daily volume (ADV) that represented a 43% increase.
The 90% revenue-generating credit products segment experienced a 22% increase in average daily volume (ADV) to $16.8 billion because of rising demand in U.S. credit markets and emerging markets and eurobonds. CEO Chris Concannon explained that the addition of portfolio and block trading features drove increased client participation.
The bond trading platform experienced growth because Federal Reserve rate expectation changes and Trump trade policy uncertainty created market volatility that forced investors to adjust their portfolios.
