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The 2016 Tech 50: Richard McVey

The MarketAxess chairman and CEO jumps to No. 21 on this year’s Tech 50 ranking.

  • By Peter Vasiliev

21
Richard McVey
Chairman and Chief Executive Officer
MarketAxess Holdings

Fixed-income trading platform operator MarketAxess Holdings, which went public in 2004, set records in this year’s first quarter for revenue ($88.6 million) and pretax income ($44.4 million), both up 15 percent from the 2015 period. Total trading volume was 27 percent higher, at $310 billion, and the company’s market capitalization now exceeds $5 billion. Chairman and CEO Richard McVey, who has led the 357-employee company since it emerged from J.P. Morgan & Co.’s LabMorgan incubator in 2000, attributes recent successes to volume and market-share growth. New York–based MarketAxess’s share of reported U.S. high-grade corporate-bond trading was 14.9 percent in the first quarter, compared with 13.7 percent a year earlier. And a risk taken in 2012 on Open Trading protocols is paying off handsomely. In contrast to the dealer-to-client model, Open Trading brings dealers, asset managers, hedge funds and others together in a single all-to-all liquidity pool. With banks in the postcrisis years pulling back from traditional market making, Open Trading has attracted investors and money managers looking for liquidity solutions. “In a more fragmented credit market, we’re helping our participants electronically find trade matches,” says McVey, 56. “If we’re consistently delivering better prices on lots of orders and those are prices they can’t get anywhere else, then the buy side has to put more orders in.” First-quarter Open Trading volume more than doubled year-over-year, to $37 billion, from $17 billion. In Europe, where Open Trading was introduced in January 2015, clients traded $4.8 billion in European and U.S. credit products in the first quarter, 73 percent more than in the fourth quarter of 2015. With more than 1,000 market participants connected to MarketAxess and 600-plus buy-side firms using three or more products, “network effect” momentum is building, McVey says: Total bond volume through 2015 has grown at a 19 percent compound annual rate, with emerging markets at 27 percent and high yield at 49 percent. The company has launched client-to-dealer trading and Open Trading for municipal bonds, with 200 investment firms and 65 dealers. “We think this is a growing trend where both dealers and investors need a new model,” McVey says. “We’ve never invested more, and our investment budget is wildly high. We have an opportunity and responsibility to clients to invest back into the business.”

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The 2016 Tech 50
1. Catherine
Bessant
Bank of America Corp.
2. Jeffrey Sprecher
Intercontinental Exchange
3. Lance Uggla
Markit
4. Phupinder Gill
CME Group
5. Shawn Edwards and Vlad Kliatchko
Bloomberg
6. R. Martin Chavez
Goldman Sachs Group
7. Robert Goldstein
BlackRock
8. Adena Friedman
Nasdaq
9. Deborah Hopkins
Citi Ventures
10. Daniel Coleman
KCG Holdings
11. Stephen Neff
Fidelity Investments
12. David Craig
Thomson Reuters
13. Michael Spencer
ICAP
14. Michael Bodson
Depository Trust & Clearing Corp.
15. Charles Li
Hong Kong Exchanges and Clearing
16. Chris Concannon
BATS Global Markets
17. Blythe Masters
Digital Asset Holdings
18. David Rutter
R3CEV
19. Neil Katz
D.E. Shaw & Co.
20. Lee Olesky
Tradeweb Markets
21. Richard McVey
MarketAxess Holdings
22. Seth Merrin
Liquidnet Holdings
23. Robert Alexander
Capital One Financial Corp.
24. Brad Katsuyama
IEX Group
25. Antoine Shagoury
State Street Corp.
26. David Gledhill
DBS Bank
27. Lou Eccleston
TMX Group
28. Andreas Preuss
Deutsche BÖrse
29. Dan Schulman
PayPal Holdings
30. Scott Dillon
Wells Fargo & Co.
31. Mike Chinn
S&P Global Market Intelligence
32. Craig Donohue
Options Clearing Corp.
33. Gary Norcross
Fidelity National Information Services
34. Steven O'Hanlon
Numerix
35. Sebastián Ceria
Axioma
36. Michael Cooper
BT Radianz
37. Tyler Kim
MaplesFS
38. Neal Pawar
AQR Capital Management
39. David Harding
Winton Capital Management
40. Chris Corrado
London Stock Exchange Group
41. Brian Conlon
First Derivatives
42. Jim Minnick
eVestment
43. Stephane Dubois
Xignite
44. Mazy Dar
OpenFin
45. Yasuki Okai
NRI Holdings America
46. Kim Fournais
Saxo Bank
47. Jock Percy
Perseus
48. Robert Schifellite
Broadridge Financial Solutions
49. Brian Sentance
Xenomorph Software
50. Pieter van der Does
Adyen

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