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MarketAxess Holdings Inc. Reports Operating Results (10-Q)

April 30, 2010 | About:
10qk

10qk

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MarketAxess Holdings Inc. (MKTX) filed Quarterly Report for the period ended 2010-03-31.

Marketaxess Holdings Inc. has a market cap of $564.9 million; its shares were traded at around $16.23 with a P/E ratio of 36.1 and P/S ratio of 5. The dividend yield of Marketaxess Holdings Inc. stocks is 1.8%. Marketaxess Holdings Inc. had an annual average earning growth of 2.6% over the past 5 years.MKTX is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, PRIMECAP Management, Steven Cohen of SAC Capital Advisors, Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of MKTX over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of MKTX.


Highlight of Business Operations:

The U.S. and European credit markets have been through a period of significant turmoil since the third quarter of 2007, especially in short-term funding and floating rate note instruments. A widespread retrenchment in the credit markets resulted in increased credit spreads and significantly higher credit spread volatility across a wide range of asset classes. Credit yield spreads in U.S. corporate bonds, as measured by the Credit Suisse Liquid U.S. Corporate Index, increased from 1.0% over U.S. Treasuries in June 2007 to a peak of 5.4% in December 2008. The credit markets demonstrated significant improvement throughout 2009 and early 2010. Credit yield spreads in U.S. corporate bonds declined to 1.2% over U.S. Treasuries as of March 31, 2010. The average daily trading volume of U.S. high-grade corporate bonds for the quarter ended March 31, 2010, as measured by the FINRA Trade Reporting and Compliance Engine (“TRACE”), was $12.8 billion, compared to $10.6 billion in the quarter ended March 31, 2009.

Total revenues increased by $10.3 million or 41.6% to $34.9 million for the three months ended March 31, 2010, from $24.6 million for the three months ended March 31, 2009. This increase in total revenues was primarily due to increases in commissions of $8.9 million and technology products and services revenues of $1.1 million.

Total expenses increased by $3.9 million or 19.6% to $23.8 million for the three months ended March 31, 2010, from $19.9 million for the three months ended March 31, 2010. The increase was primarily due to higher employee compensation and benefits of $2.5 million and general and administrative expense of $0.9 million.

Income before taxes increased by $6.4 million or 134.3% to $11.1 million for the three months ended March 31, 2010, from $4.7 million for the three months ended March 31, 2009. Net income increased by $3.9 million or 136.1% to $6.7 million for the three months ended March 31, 2010, from $2.8 million for three months ended March 31, 2009.

For volume reporting purposes, transactions in foreign currencies are converted to U.S. dollars at average monthly rates. The 67.0% increase in U.S. high-grade volume was principally due to an increase in the Company’s estimated market share of total U.S. high-grade corporate bond volume as reported by FINRA TRACE from 5.7% for the three months ended March 31, 2009 to 7.9% for the three months ended March 31, 2010 and an increase in overall market volume as measured by FINRA TRACE. Estimated FINRA TRACE U.S. high-grade volume increased by 20.8% from $644.3 billion for the three months ended March 31, 2009 to $778.0 billion for the three months ended March 31, 2010. Eurobond volumes increased by 76.2% for the three months ended March 31, 2010 compared to the three months ended March 31, 2009. Other volume increased by 53.3% for the three months ended March 31, 2010 compared to the three months ended March 31, 2009, primarily due to emerging markets and agencies volume.

Read the The complete Report

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