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Goldman Sachs 2025 Financial Services Conference Chris Concannon, CEO Ilene Fiszel Bieler, CFO The MarketAxess advantage Liquidity e m o s t a c t i v e f i x e d i n c o m e l i q u i d i t y p r o v i d PROPRIETARY TRADING DATA & ANALYTICS DEEP & DIFFERENTIATED LIQUIDITY1 1,000+ unique liquidity providers on Open Trading ("OT") 22% of OT trading volume responded to by non-dealers; 33% of OT trading volume initiated by dealers GLOBAL NETWORK1 2,100+ global investors & dealers ~13,000 active traders 1,000+ ...

Core Insights - MarketAxess Holdings Inc. has announced medium-term financial targets for the company [1] - The Board of Directors has authorized a share repurchase program of up to $400 million [1] - This new authorization is in addition to the remaining capacity of $105 million for share repurchase [1]

Core Viewpoint - MarketAxess Holdings Inc. has announced medium-term financial targets and a share repurchase authorization of up to $400 million, indicating a strong commitment to returning value to shareholders and confidence in future growth [1] Financial Targets - The company has set new medium-term financial targets, although specific figures were not disclosed in the announcement [1] Share Repurchase - The Board of Directors has authorized the repurchase of up to $400 million of additional shares, which is in addition to the $105 million remaining from a previous authorization [1]

Core Thesis - MarketAxess Holdings Inc. (MKTX) is viewed positively due to its long-term growth potential driven by automation and international expansion despite current challenges in the U.S. credit market [5]. Group 1: Financial Performance - As of December 1st, MKTX's share price was $159.99, with trailing and forward P/E ratios of 27.19 and 19.38 respectively [1]. - U.S. credit revenue has remained flat since 2021, while non-U.S. credit revenue has grown at a 13% CAGR during the same period [2]. - Block trading volumes have increased by 38% year-over-year, indicating a shift in client behavior towards automation [3]. Group 2: Strategic Initiatives - The company is focusing on emerging markets as a significant long-term opportunity due to low electronic penetration [3]. - Management is enhancing its integration with ICE Bonds and aims to deliver new client-driven solutions by 2026 [4]. - Capital allocation is primarily directed towards organic growth and opportunistic share repurchases, with M&A considered only for technology-enhancing opportunities [4]. Group 3: Market Trends - Algorithmic trading is experiencing annual growth rates of 30-40%, reflecting a trend towards increased automation in trading [2]. - Despite subdued volatility in August, strong issuance and longer duration in September have revived trading volumes [4].

Core Insights - MarketAxess Holdings Inc. reported trading volume and preliminary variable transaction fees per million for November 2025, indicating solid year-over-year progress in various trading channels [1] Group 1: Trading Performance - The company highlighted strong year-over-year growth in client-initiated, portfolio trading, and dealer-initiated channels [1]

Core Viewpoint - Investors in the Financial - Investment Bank sector should consider The Charles Schwab Corporation (SCHW) and MarketAxess (MKTX) for potential undervalued stock opportunities [1] Group 1: Company Rankings and Valuation Metrics - SCHW has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while MKTX has a Zacks Rank of 3 (Hold) [3] - SCHW's forward P/E ratio is 19.30, compared to MKTX's forward P/E of 21.68, suggesting that SCHW may be undervalued [5] - SCHW has a PEG ratio of 0.82, indicating better value relative to its expected earnings growth compared to MKTX's PEG ratio of 7.29 [5] Group 2: Additional Valuation Metrics - SCHW's P/B ratio is 3.95, while MKTX's P/B ratio is 4.34, further supporting the notion that SCHW is a more attractive value option [6] - Based on various valuation metrics, SCHW has earned a Value grade of B, whereas MKTX has a Value grade of D [6] Group 3: Earnings Outlook - SCHW is noted for its improving earnings outlook, which enhances its attractiveness as a value investment [7]

Core Insights - MarketAxess Holdings Inc. will participate in the Goldman Sachs Financial Services Conference on December 9, 2025, with CEO Chris Concannon and CFO Ilene Fiszel Bieler attending a fireside chat [1][2] Company Overview - MarketAxess operates a leading electronic trading platform for fixed-income securities, providing trading efficiency, liquidity, and cost savings to institutional investors and broker-dealers globally [3] - Approximately 2,100 firms utilize MarketAxess' patented technology for efficient trading of fixed-income securities [3] - The company offers automated and algorithmic trading solutions, integrated data offerings, and a range of post-trade services [3] - Founded in 2000, MarketAxess is recognized for its Open Trading marketplace, which is a preferred trading solution in the global credit markets [3] Recent Developments - MarketAxess reported total revenues of $208.8 million for the third quarter of 2025, reflecting a 1% increase, which included a $1.3 million impact from foreign currency fluctuations [5] - The company announced the launch of Opening and Closing Auctions, the first standardized market-wide auction protocol aimed at improving price discovery and liquidity for U.S. credit trading [7]

Core Viewpoint - Morgan Stanley upgraded Nasdaq (NDAQ) to Overweight from Equal-Weight due to both cyclical and secular tailwinds that are expected to drive accelerated revenue growth [4] Group 1: Company Upgrades and Downgrades - Nasdaq (NDAQ) was upgraded to Overweight from Equal-Weight by Morgan Stanley [4] - MarketAxess Holdings (MKTX) was downgraded to Equal-Weight from Overweight by Morgan Stanley [4]

Core Insights - MarketAxess (MKTX) has performed well during a quieter period in U.S. credit markets, despite facing softer end demand and some investor frustration [1] Company Performance - The latest quarterly results of MarketAxess exceeded expectations, indicating resilience in its operations [1] Investment Philosophy - The company is characterized by disciplined capital allocation and the ability to generate exceptional returns on capital, which aligns with the investment philosophy of focusing on high-quality stocks and businesses [1]