"We are very pleased with the second quarter results. Despite softer market conditions, we achieved record estimated U.S. high-grade market share and record emerging markets and high yield trading volume during the quarter," said Richard M. McVey, chairman and chief executive officer of MarketAxess. "Incoming regulations are having a significant impact on the market structure for credit and we have been building enhancements to our open trading and dealer-to-dealer trading protocols to help support market liquidity."

Second Quarter Results

Total revenues for the second quarter of 2012 increased 6.6% to $48.8 million, compared to $45.8 million for the second quarter of 2011. Pre-tax income was $21.2 million, compared to $19.9 million for the second quarter of 2011, an increase of 6.5%. Net income totaled $12.6 million, or $0.34 per share on a diluted basis, compared to $11.9 million, or $0.30 per share on a diluted basis, for the second quarter of 2011.

Commission revenue for the second quarter of 2012 totaled $42.7 million on total trading volume of $144.8 billion, compared to $39.1 million in commission revenue on total trading volume of $133.0 billion for the second quarter of 2011. U.S. high-grade trading volume as a percentage of FINRA's high-grade TRACE trading volume increased to a record estimated 12.4%, compared to an estimated 11.1% for the second quarter of 2011.

All other revenue, which consists of technology products and services, information and user access fees, investment income and other revenue, was $6.1 million, down 8.6% from $6.7 million for the second quarter of 2011. The decline was primarily due to lower technology professional service fees.

Total expenses for the second quarter of 2012 increased 6.7% to $27.6 million, compared to $25.9 million for the second quarter of 2011. This increase was primarily due to higher marketing and advertising costs, depreciation and amortization costs and technology and communications costs.

The effective tax rate for the second quarter of 2012 was 40.4%, compared to 40.0% for the second quarter of 2011.

Employee headcount as of June 30, 2012 was 247, compared to 236 as of June 30, 2011.

Dividend
The Company's board of directors declared a quarterly cash dividend of $0.11 per share of common stock outstanding, to be paid on August 23, 2012 to stockholders of record as of the close of business on August 9, 2012.

Balance Sheet Data
As of June 30, 2012, total assets were $289.7 million and included $188.2 million, or $5.03 per diluted share, in cash, cash equivalents and securities available-for-sale. Total stockholders' equity as of June 30, 2012 was $261.7 million.