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MarketAxess Launches E-Trading in Preferred Stocks and Asset-Backed Securities

ABS and preferred stocks were launched in direct response to institutional customer demand.

MarketAxess said it launched electronic trading in preferred stocks and consumer-based asset backed securities (ABS) on its e-trading platform.

MarketAxess is best known for trading U.S. and European high-grade corporate bonds, emerging market bonds and other types of fixed-income securities. Now it becomes the first electronic fixed-income marketplace to offer trading of preferred stocks for institutional investors, with liquidity provided by 13 market-making dealers through the MarketAxess corporate bond platform.

ABS Trading on MarketAxess began in February and now has 14 market-making dealers providing liquidity to the platform, with 100 institutional investor customers signed up to trade. Product coverage includes credit cards, equipment leases, floor plans, student loans, timeshares and autos.

Electronic trading of ABS and preferred stocks will take place on Market Axess’ patented request-for-quote (RFQ) trading system.Post-trade reporting is streamlined with MarketAxess’ straight-through-processing (STP) capabilities.

In a statement, John Gallagher, U.S. Investment Grade Product Manager at MarketAxess, comments: "We are committed to offering the institutional marketplace access to a broad range of electronic fixed-income products across the full capital structure. ABS and preferred stock trading were launched in direct response to strong customer demand."

According to MarketAxess President Kelley Millet, commenting in the same release, “The introduction of these two new products comes as trading volumes on MarketAxess continue to show promising growth both in our core high grade products as well as in the "other" products category which includes high yield securities, emerging markets debt, agencies and credit default swaps (CDS)."

On April 27th, MarketAxess reported that investment grade trading volumes grew 38.5 percent in the first quarter of 2011 compared to the same quarter last year. In addition, trading volume in "other" products grew by over 78% over the same period, reflecting a wider demand for more diverse credit products on the MarketAxess platform.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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