MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading electronic trading platform for European and U.S. high-grade corporate bonds, emerging markets bonds and other types of fixed-income securities, today launched a new index to inform market participants of trends in liquidity and transaction costs in the credit markets.
The MarketAxess Bid-Ask Spread Index (BASI)TM is designed using a proprietary methodology and tracks the spread differential between buy and sell trades of the most actively traded corporate bonds over time. The index is calculated daily using executed trade data from publicly-disseminated FINRA TRACE data and also incorporates trade data from the MarketAxess trading system.
The BASI has been developed for US high grade, high yield and emerging market bonds and can also be broken down by trade size bucket.
“One of the questions we frequently get from our clients is whether we could help them measure and quantify levels of liquidity in the corporate bond market,” comments Alex Sedgwick, Head of Research, in a post on the new MarketAxess Research blog. “With BASI we wanted to create an objective, quantifiable benchmark against which we could measure liquidity over time and across credit instruments, to help inform our clients' market research and analysis.”
With major structural changes taking place in the global fixed income markets, MarketAxess’ blog will analyse data and discuss trends across a broad range of topics, including corporate bond market structure, electronic trading, regulation, derivatives, market data and emerging markets, across the globe.
The new Market Insights page provides daily, weekly and quarterly updates on data points that help illustrate trends both large and small that are shaping the evolution of the credit markets.