Review 2024 | Outlook 2025
December 2024 www.globalcapital.com
December 2024 www.globalcapital.com
96 REVIEW 2024 | OUTLOOK 2025
SPONSORED STATEMENT
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.
Political and economic uncertainty was rife in 2024, highlighting
the importance of a trading platform with the scale and
sophistication to support clients through volatile conditions.
GlobalCapital spoke with MarketAxess’ Global Head of Emerging
Markets, Dan Burke, and Head of LatAm Sales, Maria Calderon,
about the firm’s rapid EM expansion, its strategy for Latin America
and what they expect to see in 2025.
MarketAxess sees electronic
trading driving EM growth
SPONSORED STATEMENT
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.
Political and economic uncertainty was rife in 2024, highlighting
the importance of a trading platform with the scale and
sophistication to support clients through volatile conditions.
GlobalCapital spoke with MarketAxess’ Global Head of Emerging
Markets, Dan Burke, and Head of LatAm Sales, Maria Calderon,
about the firm’s rapid EM expansion, its strategy for Latin America
and what they expect to see in 2025.
MarketAxess sees electronic
trading driving EM growth
