Marketaxess Holdings Inc Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Chris Allen - Citigroup Inc - Analyst : Morning everyone. Thanks for taking the question. Wanted to, well, hoping you can unpack the outlook for increased share gain moving forward. Can you help us frame out what are realistic expectations here? How dependent are share gains on the environment continuing, at some of the recent levels, and how do you think about the impact of new capabilities on share gains, from here?

Question: Alex Kramm - UBS Equities - Analyst : Yes. Hey, good morning. Just staying on the environment a little bit and sorry to slice and dice the month or the environment, but some people talk about April almost in two halves, and you yourself mentioned some of the record days in the early part of the month. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 2:00PM, MKTX.OQ - Q1 2025 Marketaxess Holdings Inc Earnings Call So just wondering, what you saw maybe in the first half and second half, given that, it was clearly very elevated and very good, but curious what kind of things kind of stuck in terms of client behavior and cheer and where maybe things started normalizing a little bit just as we think about the second quarter from here. Thank you.

Question: Kyle Boyd - KBW - Analyst : Hi, good morning. Maybe if I could just ask a question on fee capture and particularly wondering if you could update us on what you saw for high grade fee capture in one queue and the high grade capture number that's embedded in the April metrics you released earlier this week. I'm just wondering if you could help us understand really what's causing the year on year and the quarter on quarter declines that we saw, because I think at first glance higher open trading share I thought would have been incrementally helpful, but I know there's a number of other factors at play with PT growth and block growth, for example, which could, continue as we're looking at launching the US block solution into the second quarter.

Question: Kyle Boyd - KBW - Analyst : Great, thank you very much.

Question: Michael Cyprys - Morgan Stanley - Analyst : Hey, good morning. Thanks for taking the question. I just want to circle back to portfolio trading. I was hoping you could elaborate a bit on what you see driving the strength across your PT solution. I believe you had brought some new innovation with, I think it was a net hedging for IG embedded in PT in the quarter. So more broadly, maybe you could talk to some of the feedback and traction you're seeing with PT. And as you look out over the next 12 to 24 months, where is there scope for continued enhancements and innovation with your PT?

Question: Alex Blostein - Goldman Sachs Group, Inc - Analyst : Hey, thank you. Good morning. Another one around PT for you guys. I was hoping you could break down the composition of the ADV in the quarter between the single dealer and the income ADV that you cited, and I heard the discussion around fee per million that that all makes sense. But can you help us just frame what the fee per million currently stands today at portfolio trading and, I guess DRFQ as well since these are two of the larger particles that are growing right now for you guys. Thanks.

Question: Alex Blostein - Goldman Sachs Group, Inc - Analyst : Great awesome, really helpful staff thank you guys.

Question: Jeff Schmitt - William Blair & Company LLC - Analyst : Hi, good morning. So what have you learned from the rollout of enhanced black trading and EM and eurobonds as you look to launch that in the US? And do you see any potential hurdles to adoption here, anything that may be different in this market?

Question: Jeff Schmitt - William Blair & Company LLC - Analyst : Okay, thank you.

Question: Patrick Moley - Piper Sandler Companies - Analyst : Yes, good morning. Thanks for taking the question. So, we're hearing more and more about these alternative liquidity providers and market makers, wanting to expand their presence in the credit market. So I was hoping you could just update us on what your conversations with these alternative liquidity providers has been like and what protocols do you find that they're looking to utilize most? Your competitor has indicated that they've been very interested in in portfolio trading. I'm just curious if that's the case, and market access as well. Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 2:00PM, MKTX.OQ - Q1 2025 Marketaxess Holdings Inc Earnings Call

Question: Christopher O'Brien - Barclays - Analyst : Hi, thanks for taking the question. This is Chris O'Brien on for Ben. I had a broader question on, the capture rate and just kind of thinking more broadly across. I know you said that you price by protocol and kind of what you're seeing in the market there. So, I was curious how you're kind of positioning your pricing competitively and if there's any way or to the extent there's capacity that you could use that as a lever to drive more share growth moving forward.

Question: Christopher O'Brien - Barclays - Analyst : Great. Thank you so much.

Question: Brian Bedell - Deutsche Bank. - Analyst : Oh great, thanks. Good morning. Thank you for taking my question. Just wanted to ask Chris about the rollout of X-Pro into Europe, and, to what extent do you think that will accelerate portfolio trading share? I mean I think you mentioned 92% of your PT is done in ex now. I guess that's mostly US. But how do you think that could influence, the rollout of X-Pro could influence the usage of PT on your platform in Europe, and if you again, I ask this every once in a while, but if you had to guess sort of where you think that 11% market share of PT goes to in the next, couple of years, what would you guess?

Question: Brian Bedell - Deutsche Bank. - Analyst : Yeah, that's a great color. Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 07, 2025 / 2:00PM, MKTX.OQ - Q1 2025 Marketaxess Holdings Inc Earnings Call