MarketAxess Reports 6% Profit Decline, Boosted by Higher Commissions
MarketAxess Holdings experienced a 6% decrease in fourth-quarter earnings due to an unrealized loss on U.S. Treasury investments. However, this decline was offset by increased commission revenue as investors managed portfolios amidst interest rate uncertainty.
Total credit average daily volumes surged 6% year-over-year to $13.88 billion, while total revenue grew 3% to $202.4 million. Commission revenue, the primary contributor to revenue, witnessed a 2% increase.
The company reported an unrealized loss of $1.9 million on U.S. Treasury investments, contrasting with a $0.9 million gain in Q4 2023. Earnings amounted to $65.1 million ($1.73 per share), down from $69.6 million ($1.84 per share) in the previous year.
MarketAxess provides an electronic exchange platform for institutional investors and brokers to trade U.S. treasuries, corporate bonds, and other fixed-income securities. Average daily trading volume for U.S. government bonds increased 61% year-over-year to $25.95 billion, while emerging markets credit traded 18% higher at $3.46 billion.