GC: How has the size and scale of the MarketAxess EM franchise changed in 2024?
Burke: This year has been remarkable for MarketAxess and our EM franchise, as evidenced by a 20% increase in daily trading volumes across hard and local currency bonds compared to the previous year. The strength of our growing network of over 1,600 market participants in 120+ countries enables us to better serve clients by providing deeper access to local markets and improved price discovery. We’ve seen particular success in meeting investors’ needs for larger trades with block trading volumes increasing 20-30%. Additionally, as portfolio trading continues to reshape credit markets, we’ve expanded our capabilities to help clients execute more efficiently. These improvements reflect our commitment to delivering better trading outcomes and market access for our global client base.
GC: What were the highlights in terms of product development this year?
Burke: In 2024, we expanded our Emerging Markets capabilities in response to evolving client needs across APAC, EMEA and LATAM. Following India’s June inclusion in the JP Morgan Global EM Bond Index, we introduced specialized trading functionality to help investors efficiently access this key market.
For our South African hedge fund community, we developed a streamlined solution integrating prime broker routing for reporting requirements. And in Latin America, we’ve broadened coverage by adding Casada trading and support for Uruguayan and Chilean inflation-linked bonds as well as Paraguayan bonds — enabling more comprehensive trading strategies in the region. Most recently, we launched Targeted RFQ in November, enhancing our hard currency block trading capabilities.
GC: In LatAm specifically, what impact has MarketAxess had on the development of local markets?
Calderon: Our tailored approach to market structure has enabled us to deliver solutions that meet the specific needs of both global and local investors. Latin American trading activity was a highlight this year, with third-quarter volumes surging over 50% following an already robust first half and strong 2023 performance.
The impressive growth spans local currency bond markets and renewed activity in hard currency trading. With this momentum, it’s been really exciting to see the growth and engagement on the platform as well as the endorsement of our commitment to help investors navigate complex markets with innovative solutions.
GC: What are the main goals for the growth of the LatAm business?
Calderon: Across Latin America, we aim to maintain our rapid pace of development and innovation, deepening penetration into local markets and strengthening relationships with key local participants. Our growing network — from local authorities, regional banks and broker-dealers to domestic asset managers and pension funds — reflects this strategic focus. By understanding the unique needs of each market, we’re better positioned to develop targeted solutions that address regional challenges and regulatory requirements.
Building on our success in connecting Brazilian markets with international investors, we’re expanding our focus to deliver the same high-quality execution and efficiency to domestic institutions. For example, the launch of Casada trading has enhanced our full spectrum offering of Brazil local government bond markets including LFT’s, LTNs, NTNFs and NTNBs, with more to come in 2025. Similarly, in Mexico, we’re preparing to roll out new initiatives and excited to bring new trading opportunities in 2025.
GC: What market dynamics does the firm expect to see in 2025?
Burke: The potential for growth in electronic trading across emerging markets is immense. Currently, adoption stands at 15-20% for hard currency and 25% for local currency instruments — well below the 40-50% seen in developed markets. This gap highlights the opportunity to enhance market efficiency and transparency through electronification.
Our Request-for-Market (RFM) protocol’s robust information leakage prevention features are particularly valuable in this evolving market environment, helping clients minimize market impact as low market trading volumes ramp up. This becomes especially critical as we navigate a new geopolitical realm under a different U.S. administration.
If new trade policies introduce higher tariffs for emerging markets, we could see currency depreciation and potential shifts towards hard currency bonds. Should foreign investors move out of local currency markets, the gap would need to be filled by local investors—a transition our trading infrastructure is well positioned to support.
Calderon: The convergence of regional elections, the U.S. presidential election and the onset of rate cuts in 2024 made for one of the most complex markets we have ever seen. Through these periods of heightened volatility, our platform provided consistent liquidity, transparency and price improvement, validating our ability to support investors regardless of the macro environment ahead.
Emerging Markets are at a pivotal moment, and the next year will be defined by those who can adapt to the complexities of a rapidly changing landscape. At MarketAxess, we’re committed to staying ahead of the curve and empowering our clients with the tools and access they need to succeed.