NEW YORK - MarketAxess Holdings Inc. (NASDAQ:MKTX), a prominent electronic trading platform for fixed-income securities, announced today an enhancement to its partnership with investment giant BlackRock (NYSE:BLK). The enhancement involves integrating select MarketAxess credit trading protocols, pricing, and data into BlackRock's Aladdin order execution management system (OEMS).
This development is an extension of the collaboration between MarketAxess and BlackRock that began in 2013, focusing on Open Trading and analytics. The enhanced integration aims to provide a more streamlined trading experience for clients using both Aladdin and MarketAxess platforms.
Rich Schiffman, Global Head of Trading Solutions at MarketAxess, commented on the partnership's significance for client trading strategies, noting an uptick in the adoption of automation protocols. The integration will include MarketAxess's Adaptive Auto-X, RFQ solutions, Open Trading, and Live Markets central limit order book.
Kamya Somasundaram, Global Head of Aladdin Partnerships at BlackRock, highlighted the growing demand for sophisticated liquidity, workflows, and analytics due to the increasing electronification of credit markets. The partnership is expected to enhance the trading experience for users of BlackRock's Aladdin, which is a technology platform designed for institutional use that unifies investment management processes.
MarketAxess, founded in 2000, has been recognized for its Open Trading marketplace and its role in connecting market participants through advanced trading lifecycle solutions. The company's electronic trading platform is utilized by over 2,000 firms globally, providing trading efficiency and cost savings.
The press release also contains forward-looking statements regarding MarketAxess's prospects and performance, cautioning that actual results may differ due to various risks and uncertainties. MarketAxess does not assume any obligation to update forward-looking statements with new information or future events.
This report is based on a press release statement and does not endorse any claims made. It aims to provide a factual summary of the partnership enhancement between MarketAxess and BlackRock.
In other recent news, MarketAxess reported a 10% rise in total revenue for the second quarter of 2024, reaching $198 million. This growth was primarily driven by robust commission revenue and the successful integration of the newly acquired company, Pragma. The firm's diluted earnings per share hit $1.72, and a new share repurchase program valued at $200 million was announced. Citi, maintaining its Buy rating on MarketAxess, anticipates a positive market reaction to the forthcoming release of the company's monthly data for August. The firm projects that MarketAxess will gain market share in investment grade and high yield credit due to a combination of market conditions. Additionally, increased exchange-traded fund activity and a decline in private trading are also expected to contribute positively to MarketAxess's market share. Despite the positive outlook, the company anticipates an additional $10 million in expenses in the second half of the year, mainly for marketing, travel, and technology.
InvestingPro Insights
MarketAxess Holdings Inc. (NASDAQ:MKTX) continues to demonstrate its strength in the financial markets with its robust trading platform and strategic partnerships. A glance at the company's financials through InvestingPro shows a company that is maintaining a steady growth in revenue, with a 6.07% increase over the last twelve months as of Q2 2024. This consistent performance is further highlighted by a solid gross profit margin of 62.5%, reflecting the company's ability to efficiently manage its cost of sales relative to its revenue.
InvestingPro Tips for MarketAxess suggest that the company is trading at a high earnings multiple, with a P/E ratio of 36.9 as of Q2 2024, which indicates that the market has high expectations for the company's future earnings growth. Additionally, MarketAxess has a strong track record of returning value to shareholders, as evidenced by its history of raising its dividend for 10 consecutive years. Investors looking for a company with a stable dividend might find MarketAxess an attractive option, especially considering that it has maintained dividend payments for 16 consecutive years.
With a market capitalization of $9.7 billion, MarketAxess is a significant player in its sector. Its performance over the last three months has been particularly strong, with a price total return of 29.64%, showcasing investor confidence in the company's operations and future outlook. This may be of interest to investors seeking companies with robust short-term returns.
For those interested in a deeper dive into MarketAxess's financial health and future prospects, InvestingPro offers additional tips and metrics. There are currently 11 more InvestingPro Tips available for MarketAxess at InvestingPro, providing a comprehensive analysis for informed investment decisions.
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