HONG KONG, Sept 6 Marketaxess Holdings Inc
has expanded its operations in Asia by offering support
services for its electronic corporate bond trading platform to
all market participants.
The New York-based firm's latest move after it launched an
electronic trading platform for Asian local currency debt last
December is a sign of a growing trend of technological firms
snatching market share in trading from large Wall Street Banks.
"This completes our offering for our open trading business
on a global level and will help our Asian clients immensely,"
Richard Schiffman, head of open trading product management at
MarketAxess, told Reuters.
E-trading of corporate debt has taken off in the West in
recent years and accounts for 20-30 percent of overall market
share, according to various estimates. Tech-savvy firms have
greatly benefited from that trend as regulations bite.
Since its 2012 launch, its open trading marketplace has
grown rapidly with daily trade volume of about $639 million in
the second quarter of 2016, nearly doubling from a year-ago
Globally, the open trading market place which allows users
to send orders anonymously to its more than 1000 plus market
participants, accounts for about a tenth of the daily volume
that trades on its platform.
In Asia, this will be restricted to the international bond
markets at first with a rollout to individual local currency
debt eyed in the coming months.
The firm declined to provide a numerical value on the
expansion plans in Asia or the proportion of how much Asia
contributes to its global revenues.
Asian corporate bond issuance in dollars, euro and yen
excluding the more developed markets of Japan and Australia for
the top 20 bookrunners has printed about $193 billion so far
compared to $183 billion in the year ago period, according to
Shares in Marketaxess Holdings have outperformed the broader
market index by 45 percent so far this year.
(Reporting by Saikat Chatterjee; Editing by Kim Coghill)