MarketAxess reported second quarter revenues of $218.4 million, roughly flat year-over-year, and diluted EPS of $1.93, up from $1.91 in the prior year. The results reflected weakness in the core U.S. credit business, which was offset by strong growth in portfolio trading and services revenue.

Key Highlights

  • Portfolio Trading average daily volume (ADV) surged 33% to a record $2.0 billion, with record volumes in U.S. high-grade (+41%) and U.S. high-yield (+93%).
  • Services revenue grew 14% to a record $31.5 million, led by a 23% increase in information services revenue.
  • The growth was offset by a 9% decline in U.S. credit commission revenue, which drove total commission revenue down 3% to $186.9 million.
  • Concurrent with its earnings, MarketAxess announced it has entered into a definitive agreement to be acquired by Intercontinental Exchange (ICE).