US-listed MarketAxess Holdings (Nasdaq: MKTX) has published its demand metrics for January 2022, reporting a total trading volume of $715.7 billion. That figure has increased by 24 percent year-over-year.
MarketAxess is an electronic
trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term for fixed-income securities. Additionally, it provides market data and post-trade services for the global fixed-income markets. Out of the total reported volume, $239.3 billion was generated from credits and $476.3 billion came from rates volume. While demand for rates trading jumped by 41 percent, credits witnessed a downfall of 8 percent.
Institutions Dominated
In addition, the platform detailed that 91 percent of the credit volume came from
institutional trading
Institutional Trading
Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. The biggest institutional investors in the United States includes Blackrock, Vanguard Asset Management, State Street Global Advisors, and BNY Mellon Investors.Institutional traders are making trades for banks, insurance companies, or even hedge funds. It is estimated that institutional forex investors control approximately 70% of the market. By extension, retail traders make up only about 5.5% of the market, while rest is comprised of central banks such as the US Federal Reserve and the European Central Bank (ECB). Institutional Traders ExplainedInstitutional traders buy and sell securities for accounts they manage for a group or institution. Institutional investors buy and trade in all markets and on all exchanges. Only certifiable individuals can become institutional traders. To be an institutional trader, you must take exams to become a registered representative or broker. Institutional traders buy and sell securities for accounts they manage for a group or institution. Pension funds, mutual fund families, insurance companies, and exchange-traded funds (ETFs) are also familiar assets used by institutional traders.Of note, institutional traders can affect the market in ways that ordinary retail traders cannot. Since institutional traders can engage in larger volumes, these trades potentially can greatly impact the share price of a security. As such, many traders often may split trades among various brokers or over time in order to not make a material impact.
Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. The biggest institutional investors in the United States includes Blackrock, Vanguard Asset Management, State Street Global Advisors, and BNY Mellon Investors.Institutional traders are making trades for banks, insurance companies, or even hedge funds. It is estimated that institutional forex investors control approximately 70% of the market. By extension, retail traders make up only about 5.5% of the market, while rest is comprised of central banks such as the US Federal Reserve and the European Central Bank (ECB). Institutional Traders ExplainedInstitutional traders buy and sell securities for accounts they manage for a group or institution. Institutional investors buy and trade in all markets and on all exchanges. Only certifiable individuals can become institutional traders. To be an institutional trader, you must take exams to become a registered representative or broker. Institutional traders buy and sell securities for accounts they manage for a group or institution. Pension funds, mutual fund families, insurance companies, and exchange-traded funds (ETFs) are also familiar assets used by institutional traders.Of note, institutional traders can affect the market in ways that ordinary retail traders cannot. Since institutional traders can engage in larger volumes, these trades potentially can greatly impact the share price of a security. As such, many traders often may split trades among various brokers or over time in order to not make a material impact.
Read this Term, whereas the rest came from dealer-to-dealer transactions.
Further, MarketAxess executed an estimated average of $270 million in portfolio trades last month, compared to the $208 million per day execution rate in the fourth quarter of 2021.
“We registered our second-highest month of total trading volume ever in January, with several notable highlights,” Rick McVey, the Chairman and CEO of MarketAxess, said.
“U.S. Credit trading activity rebounded nicely in January after three straight quarters of low credit market volatility, and Emerging Market ADV reached a new monthly record of $3.1 billion. U.S. Treasury volumes grew 40% year-over-year with an expansion of our Rates active client base. We are seeing promising signs of volatility beginning to pick-up in global fixed income markets, creating increased demand for our Open Trading liquidity solutions.”
Meanwhile, the company is poised to strengthen its leadership. It onboarded Kathryn Sweeney last October as the Head of Index and ETF Solutions following the addition of Charles Li to its board.
Over the recent years, MarketAxess has expanded its footprint with the acquisition of MuniBrokers and LiquidityEdge.
US-listed MarketAxess Holdings (Nasdaq: MKTX) has published its demand metrics for January 2022, reporting a total trading volume of $715.7 billion. That figure has increased by 24 percent year-over-year.
MarketAxess is an electronic
trading platform
Trading Platform
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools.
Read this Term for fixed-income securities. Additionally, it provides market data and post-trade services for the global fixed-income markets. Out of the total reported volume, $239.3 billion was generated from credits and $476.3 billion came from rates volume. While demand for rates trading jumped by 41 percent, credits witnessed a downfall of 8 percent.
Institutions Dominated
In addition, the platform detailed that 91 percent of the credit volume came from
institutional trading
Institutional Trading
Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. The biggest institutional investors in the United States includes Blackrock, Vanguard Asset Management, State Street Global Advisors, and BNY Mellon Investors.Institutional traders are making trades for banks, insurance companies, or even hedge funds. It is estimated that institutional forex investors control approximately 70% of the market. By extension, retail traders make up only about 5.5% of the market, while rest is comprised of central banks such as the US Federal Reserve and the European Central Bank (ECB). Institutional Traders ExplainedInstitutional traders buy and sell securities for accounts they manage for a group or institution. Institutional investors buy and trade in all markets and on all exchanges. Only certifiable individuals can become institutional traders. To be an institutional trader, you must take exams to become a registered representative or broker. Institutional traders buy and sell securities for accounts they manage for a group or institution. Pension funds, mutual fund families, insurance companies, and exchange-traded funds (ETFs) are also familiar assets used by institutional traders.Of note, institutional traders can affect the market in ways that ordinary retail traders cannot. Since institutional traders can engage in larger volumes, these trades potentially can greatly impact the share price of a security. As such, many traders often may split trades among various brokers or over time in order to not make a material impact.
Institutional trading can be characterized as individuals or entities with the ability to invest in securities that are not available to retail traders directly.This includes specific investments such as FX forwards or swaps, among others.There are many types of players in the institutional trading space. These include central banks, retail and commercial banks, internet banks, credit unions, savings, and loan associations, investment banks, investment companies, brokerage firms, insurance companies, and mortgage companies. The biggest institutional investors in the United States includes Blackrock, Vanguard Asset Management, State Street Global Advisors, and BNY Mellon Investors.Institutional traders are making trades for banks, insurance companies, or even hedge funds. It is estimated that institutional forex investors control approximately 70% of the market. By extension, retail traders make up only about 5.5% of the market, while rest is comprised of central banks such as the US Federal Reserve and the European Central Bank (ECB). Institutional Traders ExplainedInstitutional traders buy and sell securities for accounts they manage for a group or institution. Institutional investors buy and trade in all markets and on all exchanges. Only certifiable individuals can become institutional traders. To be an institutional trader, you must take exams to become a registered representative or broker. Institutional traders buy and sell securities for accounts they manage for a group or institution. Pension funds, mutual fund families, insurance companies, and exchange-traded funds (ETFs) are also familiar assets used by institutional traders.Of note, institutional traders can affect the market in ways that ordinary retail traders cannot. Since institutional traders can engage in larger volumes, these trades potentially can greatly impact the share price of a security. As such, many traders often may split trades among various brokers or over time in order to not make a material impact.
Read this Term, whereas the rest came from dealer-to-dealer transactions.
Further, MarketAxess executed an estimated average of $270 million in portfolio trades last month, compared to the $208 million per day execution rate in the fourth quarter of 2021.
“We registered our second-highest month of total trading volume ever in January, with several notable highlights,” Rick McVey, the Chairman and CEO of MarketAxess, said.
“U.S. Credit trading activity rebounded nicely in January after three straight quarters of low credit market volatility, and Emerging Market ADV reached a new monthly record of $3.1 billion. U.S. Treasury volumes grew 40% year-over-year with an expansion of our Rates active client base. We are seeing promising signs of volatility beginning to pick-up in global fixed income markets, creating increased demand for our Open Trading liquidity solutions.”
Meanwhile, the company is poised to strengthen its leadership. It onboarded Kathryn Sweeney last October as the Head of Index and ETF Solutions following the addition of Charles Li to its board.
Over the recent years, MarketAxess has expanded its footprint with the acquisition of MuniBrokers and LiquidityEdge.
Source: https://www.financemagnates.com/institutional-forex/marketaxess-posts-impressive-january-demand-volume-jumped-24/