MarketAxess Q2 profit drops

For the second quarter of 2006, total revenue was $20.1 million compared to $19.3 million in the second quarter of 2005. Net income for the second quarter of 2006 was $0.8 million, or $0.02 per diluted share, compared to $1.8 million, or $0.05 per diluted share, in the second quarter of 2005. Second quarter 2006 net income includes the impact of $0.8 million of stock option costs from the adoption of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 123R (SFAS 123R).

Richard M. McVey, chairman and chief executive officer of MarketAxess said, "We made good progress during the quarter toward our goal of expanding the Company's foundation and diversifying sources of revenue. The European high-grade business performed strongly, with volume up 34% on the year-ago quarter, and volume in the 'Other' category was up 28% compared to the second quarter of 2005 reflecting growing momentum in our new product areas. In addition, in June we launched our new dealer-to-dealer trading service, DealerAxess, which extends our electronic trading technology into a new and large market."