MarketAxess' (MKTX) Platform to be Utilized by Flow Traders

·3-min read

MarketAxess Holdings Inc. MKTX and Flow Traders recently announced that the latter will become a liquidity provider in U.S. high yield corporate bonds, Euro-denominated investment grade and high-yield bonds and market sovereign bonds via the trading platform of the former. Flow Traders is even contributing streaming prices as a market maker for U.S. high-yield corporate bonds in the anonymous Live Markets order book.

Flow Traders has been providing anonymous liquidity through MKTX’s Open Trading platform for several years and finally took the decision of becoming a name-disclosed liquidity provider on the MarketAxess trading platform for global credit trading products.

Institutional investor clients can now choose Flow Traders by name. The corporate bond market is evolving each day, banking on cutting-edge technology and high-quality data. Based on this, MKTX will be able to enhance its trading volumes. This leading securities and exchange entity makes an effort to boost its trading volumes.

MKTX reported a total monthly trading volume of $653.4 billion during the 20 trading days in November 2021, which improved 29.7% year over year. This currently Zacks Rank #3 (Hold) operator of a leading electronic trading platform for fixed-income securities, and market data and post-trade services provider, reported average daily volume (ADV) of $32.5 billion.

The upside can primarily be attributed to strength in rates and other credit volume. Rates volume was driven by solid contributions from U.S. Treasury bonds while other credit volume gained on the back of well-performing Emerging markets, Eurobonds and other credit products. However, the improvement was partly offset by a year-over-year decline in volume reported in MKTX’s U.S. high-grade product line. This apart, strategic acquisitions and a strong financial position will drive long-term growth for MKTX. MarketAxess is well-poised for growth, attributable to a diversified product suite undergoing constant enhancements and technological upgrades.

Price Performance

Shares of MarketAxess have lost 30.2% in the past year against the industry’s rally of 34.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Stocks to Consider

Some better-ranked stocks in the same space are Intercontinental Exchange, Inc. ICE, OTC Markets Group Inc. OTCM and Cboe Global Markets, Inc. CBOE.

Intercontinental Exchange is a leading global operator of regulated exchanges, clearing houses and listings venues, and a provider of data services for commodity, financial, fixed income and equity markets. It managed to come up with a trailing four-quarter earnings surprise of 3.11%, on average.

OTC Markets Group Inc. is an open, transparent and connected marketplace platform providing financial information and technology services to broker-dealers, issuers of OTC traded securities and market data consumers. OTCM came up with a trailing four-quarter surprise of 41.39%, on average.

Cboe Global Markets is one of the largest stock exchange operators by volume in the United States and a leading market, globally, for ETP trading. CBOE’s earnings beat the consensus mark in three of its trailing four quarters (while missing the mark in one), the average surprise being 3.22%.

Shares of Intercontinental Exchange, OTC Markets Group and Cboe Global Markets have gained 24.1%, 62.6% and 51.115 each in the past year.

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Intercontinental Exchange Inc. (ICE) : Free Stock Analysis Report

Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report

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OTC Markets Group Inc. (OTCM) : Free Stock Analysis Report

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