MarketAxess has revealed that its increase in ‘all other revenue’ for Q1 2021 was primarily due to $4 million of regulatory trade reporting revenue generated by Regulatory Reporting Hub, which was acquired from Deutsche Boerse Group in November 2020.
All other revenue consists of information services, post-trade services and other revenue. Overall it increased to $19.6 million, compared to $13 million for Q1 2020.
MarketAxess noted $0.7 million of the revenue was due to the weaker US dollar to UK pound sterling exchange rate.
Revenues were at a record level at $195.5 million, up 16 per cent compared to $169 million in the same period last year.
Operating income was $103.5 million, compared to $91.1 million for Q1 2020, which is an increase of 13.6 per cent, while the operating margin was 52.9 per cent compared to 53.9 per cent for the same period last year.
The report also revealed net income totalled $80.5 million, or $2.11 per share on a diluted basis, compared to $74.8 million, or $1.96 per share, which was observed in Q1 2020.
Commission revenue is also on the upward trend. It jumped 12.7 per cent to $175.8 million, compared to $156.0 million for Q1 2020.
Variable transaction fees came in at $148.4 million which marks an increase of 14.9 per cent compared to variable transaction fees of $129.2 million for Q1 2020.
Rick McVey, chairman and CEO of MarketAxess, comments: “MarketAxess started the new year on a strong note with record quarterly credit trading volume and record revenue.”
“Market share gains are driving the volume and revenue growth as electronic trading continues to advance in fixed-income markets around the world. We are seeing positive signs in new product areas, and in all geographic regions, as we invest to support long-term growth. Trading automation continues to accelerate with both our investor and dealer clients.”
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