MarketAxess Holdings Inc. (NASDAQ:MKTX) Q4 2020 Earnings Conference Call January 27, 2021 10:00 AM ET Company Participants Dave Cresci - Investor Relations Manager Rick McVey - Chairman & Chief Executive Officer Chris Concannon - President & Chief Operating Officer Tony DeLise - Chief Financial Officer Conference Call Participants Dan Fannon - Jefferies Richard Repetto - Piper Sandler Chris Allen - Compass Point Ari Ghosh - Credit Suisse Michael Cyprys - Morgan Stanley Kyle Voigt - KBW Chris Shutler - Willi ...

INVESTOR PRESENTATION 4th Quarter 2020 Forward Looking Statements This presentation may contain forward‐looking statements, including statements about the outlook and prospects for Company and industry growth, as well as statements about the Company's future financial and operating performance. These and other statements that relate to future results and events are based on MarketAxess' current expectations. The Company's actual results in future periods may differ materially from those currently expected o ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State or other j ...

Financial Data and Key Metrics Changes - Revenue for Q3 2020 was $164 million, representing a 25% year-over-year increase [7] - Operating income increased by 33% to $88 million, with operating margins growing to 53.5% [7][22] - Diluted earnings per share rose 25% to $1.78 [7] - Trailing 12 months EPS growth was 37%, and revenue growth was 31%, indicating an acceleration in growth rates [8] Business Line Data and Key Metrics Changes - Open Trading volume increased by 41% year-over-year, contributing to estimated client transaction cost savings of over $250 million for the quarter [7][10] - U.S. high-grade volumes rose 17% year-over-year to $305 billion, with market share increasing by two percentage points to 22.2% [17] - U.S. high-yield volume surged by 46%, reaching a record market share of 16% [17] - Automated trading volumes rose to over $30 billion, up from $22.6 billion in Q3 2019, with auto-execution functionality used by 86 firms [14] Market Data and Key Metrics Changes - Credit market trading conditions were mixed, with credit spreads and volatility trending lower compared to earlier in the year [9] - New issue volume was 30% higher than Q3 last year, despite a substantial drop from Q2 [9] - Corporate debt outstanding increased by approximately 9% to $10.4 trillion [9] Company Strategy and Development Direction - The company is focused on driving innovation and expanding its global footprint, with new trading protocols and product areas being added to Open Trading [15][16] - Recent acquisitions, including MuniBrokers and Deutsche Borse Group's Regulatory Reporting Hub, aim to enhance trading, data, and post-trade services [16][17] - The company is investing in new rates trading capabilities and plans to launch a fully integrated streaming click-to-trade rates front end [18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing business momentum and market share trends in core products [30] - The company anticipates that new products and trading protocols will expand and diversify revenue sources [30] - Management highlighted the positive trend in average years to maturity for high-grade volume, indicating growing client confidence [10] Other Important Information - The effective tax rate for Q3 was 23%, reflecting excess tax benefits related to share-based compensation [22] - The company expects full-year expenses to be near the upper end of the guidance range of approximately $314 million [26] - Cash and investments as of September 30 were $341 million, down from $536 million as of June 30 [27] Q&A Session Summary Question: On self-clearing and its impact on costs - Management indicated that self-clearing could reduce clearing costs by upwards of 30% per ticket, potentially lowering it to 6% or 7% of Open Trading revenue [34][35] Question: On fee per million sustainability - Management noted that various factors influence fees per million, and while current fee capture is strong, it is difficult to predict future trends [37][38] Question: On the regulatory reporting hub acquisition - The acquisition is expected to accelerate margin expansion in the post-trade business and add significant data capabilities [41][44] Question: On high-yield business sustainability - Management highlighted that transaction cost savings and new market participants are driving sustainable growth in the high-yield platform [46][48] Question: On the muni business and MuniBrokers acquisition - Muni revenue grew 37% year-over-year, driven by Open Trading, and the MuniBrokers acquisition is expected to enhance content and overall volumes [50][53] Question: On live markets and liquidity - Live markets are seen as both creating new liquidity and providing a more efficient trading method for already liquid bonds [64][65] Question: On block trade market share - Current market share for block trades is around 10.5%, with an increase in long-dated paper but a slight decline in short-dated paper [66][68]

※ Market Axess® | --- | --- | --- | |-----------------------------|-------|-------| | | | | | | | | | Q3 2020 Conference Call and | | | | Webcast | | | | October 27, 2020 | | | Forward Looking Statements This presentation may contain forward-looking statements, including statements about the outlook and prospects for Company and industry growth, as well as statements about the Company's future financial and operating performance. These and other statements that relate to future results and events are based ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State or other jurisd ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State or other juris ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) 55 Hudson Yards, New York, New York 10001 (Addres ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34091 MARKETAXESS HOLDINGS INC. (Exact name of registrant as specified in its charter) Delaware 52-2230784 (State or other j ...

(Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or Commission File Number 001-34091 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the ...