MarketAxess Holdings Inc. MKTX recently announced an expansion of its 10-year-long partnership with BlackRock. Under this expanded partnership, MKTX’s credit trading protocols, data and pricing will be integrated into BlackRock’s Aladdin order execution management system (OEMS).

The partnership between MKTX and BlackRock in MarketAxess analytics and Open trading dates back to 2013. The expansion of this partnership bodes well for MKTX as it enhances existing offerings for common clients of both companies. The integration of MKTX’s credit trading protocols within the Aladdin platform is expected to augment the client trading experience. The ability to retain existing clients, coupled with attracting new ones, bodes well for the company.

This is a time-opportune move for MKTX as it is witnessing increased usage of its automation protocols. Clients are relying on MKTX’s strategies for more than 90% of their trading volumes. Adaptive Auto-X, Live Markets central limit order book, and Open Trading will be available to Aladdin’s clients. This is expected to enhance trading volumes for MKTX as it opens access to a larger pool of institutional clients.

As the electronification of credit markets continues to grow, the demand for liquidity, analytics and workflows will also rise, benefiting MKTX’s metrics in the future. Higher demand will lead to higher trading activity and top-line growth.

This expanded partnership will also improve MKTX’s competitive position in the market. MKTX’s automation suite of products witnessed rising adoption in the second quarter of 2024, with volumes representing 10% of its total credit volume. A move like this should expand the usage of its automation products and market share.

MKTX’s Zacks Rank & Price Performance

MarketAxess presently carries a Zacks Rank #3 (Hold). MarketAxess shares have gained 9.7% in the past month compared with 5.6% growth of the industry it belongs to.

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Key Picks

Some better-ranked stocks in the broader Finance space are CrossFirst Bankshares, Inc. CFB, WisdomTree, Inc. WT and HIVE Digital Technologies Ltd. HIVE. Each of the companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CrossFirst Bankshares’ earnings outpaced estimates in each of the last four quarters, the average surprise being 8.8%. The Zacks Consensus Estimate for CFB’s 2024 earnings indicates an improvement of 4.1%, while the consensus mark for revenues implies growth of 5.1% from the corresponding year-ago figures.  The consensus mark for CFB’s earnings has moved 1.3% north in the past 30 days.

The Zacks Consensus Estimate for WisdomTree’s 2024 earnings indicates 67.6% year-over-year growth. During the past two months, WT has witnessed three upward estimate revisions against none in the opposite direction. It met earnings estimates twice in the past four quarters and beat twice, with an average surprise of 5.9%.

The Zacks Consensus Estimate for HIVE Digital’s current-year earnings suggests a 63.6% year-over-year improvement. During the past 30 days, HIVE has witnessed two upward estimate revisions against none in the opposite direction. The consensus mark for current-year revenues suggests a 9.4% jump from a year ago.

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MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report

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