UBS Reiterates "Buy" Rating for MarketAxess (NASDAQ:MKTX)
Summary
UBS has reaffirmed its "Buy" rating for MarketAxess (MKTX) following the company's strong Q2 2025 performance, which saw record trading volumes in both credit ($1 trillion, up 20%) and rates ($2 trillion, up 55%). Despite these impressive volume gains, MarketAxess experienced a decline in fees per million (FPM) for both credit (down 7%) and rates (down 12%) due to changes in protocol and product mix. The stock is currently trading at $219.27, with a market capitalization of $8.22 billion.
UBS Reaffirms 'Buy' Rating for MarketAxess (MKTX) Amidst Record Trading Volumes
NEW YORK, NY – July 8, 2025 – UBS has reiterated its "Buy" rating for MarketAxess (NASDAQ:MKTX), a leading electronic trading platform for fixed-income securities. The reaffirmation comes as MarketAxess continues to demonstrate significant growth in trading volumes, despite some pressure on fees. As of the rating reiteration, MKTX was trading at $219.99.
MarketAxess operates in a competitive landscape, vying with other financial technology giants such as Tradeweb and Bloomberg in the electronic trading space for corporate bonds and other credit products.
Q2 2025 Performance Highlights
The second quarter of 2025 marked a period of notable achievements for MarketAxess:
- Credit Trading Milestone: The company facilitated over $1 trillion in total credit trading volume, representing a substantial 20% increase from the previous year. This achievement is a historic first for MarketAxess, underscoring its expanding influence in the credit trading market.
- Rates Trading Surge: MarketAxess' rates trading business reached an unprecedented high, recording $2 trillion in total volume for the quarter. This reflects an impressive 55% year-over-year increase.
These robust volume figures highlight MarketAxess' strong operational performance and growing adoption across various fixed-income segments.
Segmental Growth and Fee Dynamics
Further analysis of the quarter's performance reveals strong segmental growth:
- High-Yield and Eurobonds: These credit segments experienced a healthy 25% year-over-year growth.
- Emerging Markets: Average daily volume in emerging markets saw a 20% rise.
Despite these impressive trading volumes, MarketAxess faced headwinds concerning its fees per million (FPM):
- Total Credit FPM: Decreased by 7%.
- Total Rates FPM: Declined by 12%.
Management attributed these FPM reductions to shifts in protocol and product mix, suggesting an evolving market structure and potentially increased competition or changes in trading behavior.
Stock Performance and Market Snapshot
As of the latest update, MKTX's stock price stands at $219.27, reflecting a modest decrease of approximately 1.21% or $2.68 from its opening. Today's trading range has been between a low of $218.50 and a high of $221.25.
Over the past year, MKTX has seen significant price fluctuations, reaching a high of $296.68 and a low of $186.84. The company currently commands a market capitalization of approximately $8.22 billion, with a trading volume of 151,086 shares reported today.