HONG KONG, Sept 6 (Reuters) - 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 period.
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 Thomson Reuters.
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)