MarketAxess ups credit agreement to support conversion to self-clearing

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – MarketAxess Holdings Inc. amended its credit agreement with JPMorgan Chase Bank, NA as administrative agent on Aug. 19 to increase the commitment to $450 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also permits investments of up to $500 million in MarketAxess Corp., a broker-dealer subsidiary of the company.

The company plans to use the additional commitments to make advances to its broker-dealer subsidiaries to fund self-clearing and trade settlement activities and for other general corporate purposes.

Specifically, on Aug. 10, MarketAxess Corp. converted to self-clearing for the U.S bond trades to which it is a counterparty via its Open Trading functionality. MarketAxess Corp. may use the additional commitments to assist with certain capital or liquidity requirements that are imposed on all new self-clearing members by the Depository Trust Co.

As of Tuesday, the company had borrowed $248 million under the credit agreement to help support the conversion to self-clearing.

MarketAxess is a New York-based provider of corporate bond and other fixed-income trading platforms used by institutional investors.

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