Core Insights - MarketAxess Holdings Inc. has achieved a significant milestone by surpassing $1 trillion in emerging markets trading volume in 2025, reflecting cumulative activity across hard and local currency bond markets [1][9] Company Performance - The company operates in 30 local currency markets and over 100 hard currency markets, serving more than 1,500 institutional clients across approximately 90 global markets [2] - MarketAxess reported a record average daily volume (ADV) in emerging markets trading of around $5 billion, which is an increase of about 16% year over year, driven by growth in both local and hard currency volumes [3][9] - The launch of a fully electronic workflow for Indian Government Bonds in June 2025 allows MarketAxess to cover the entire J.P. Morgan GBI-EM Index, enhancing its position in the EM debt market [2][4] Market Position and Strategy - The achievement of the $1 trillion trading volume indicates that MarketAxess has significantly scaled its EM business in a traditionally fragmented market, enhancing liquidity and transparency for institutional traders [4] - The company is expanding its dealer business and rolling out tools for sell-side traders, diversifying beyond core fixed-income trading [5] Industry Context - Competitors like CME Group and Intercontinental Exchange, Inc. are also expanding their operations, with CME focusing on international growth and new product rollouts, while ICE is investing in sustainability and data services [6][7] Valuation and Earnings Estimates - MarketAxess shares have declined by 21.8% over the past year, contrasting with the industry's growth of 38.8% [8] - The company trades at a forward price-to-earnings ratio of 22.93X, which is higher than the industry average, and has a Value Score of D [11] - The Zacks Consensus Estimate for MarketAxess' 2025 earnings suggests a 1.7% increase year over year, with a further 7.5% increase projected for 2026 [12]