Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2022 | Feb. 17, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | MKTX | |
Entity Registrant Name | MARKETAXESS HOLDINGS INC. | |
Entity Central Index Key | 0001278021 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Current Reporting Status | Yes | |
ICFR Auditor Attestation Flag | true | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Voluntary Filers | No | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 37,608,554 | |
Entity Public Float | $ 8.4 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, $0.003 par value | |
Security Exchange Name | NASDAQ | |
Entity File Number | 001-34091 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 52-2230784 | |
Entity Address, Address Line One | 55 Hudson Yards | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
Document Annual Report | true | |
Document Transition Report | false | |
City Area Code | 212 | |
Local Phone Number | 813-6000 | |
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement for the 2023 Annual Meeting of Stockholders are incorporated by reference into Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K. | |
Auditor Name | PricewaterhouseCoopers LLP | |
Auditor Location | New York, New York | |
Auditor Firm ID | 238 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 430,746 | $ 506,735 |
Cash segregated under federal regulations | 50,947 | 50,159 |
Investments, at fair value | 83,792 | 36,078 |
Accounts receivable, net of allowance of $590 and $140 as of December 31, 2022 and 2021 ,respectively | 78,450 | 63,881 |
Receivables from broker-dealers, clearing organizations and customers | 476,335 | 408,346 |
Goodwill | 154,789 | 154,789 |
Intangible assets, net of accumulated amortization | 98,065 | 116,377 |
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 100,256 | 96,061 |
Operating lease right-of-use assets | 66,106 | 70,960 |
Prepaid expenses and other assets | 68,289 | 27,066 |
Total assets | 1,607,775 | 1,530,452 |
Liabilities | ||
Accrued employee compensation | 56,302 | 59,719 |
Payables to broker-dealers, clearing organizations and customers | 303,993 | 229,325 |
Income and other tax liabilities | 28,448 | 40,456 |
Accounts payable, accrued expenses and other liabilities | 55,263 | 71,218 |
Operating lease liabilities | 82,676 | 88,425 |
Total liabilities | 526,682 | 489,143 |
Commitments and Contingencies (Note 15) | ||
Stockholders' equity | ||
Preferred stock | 0 | 0 |
Common stock | 123 | 123 |
Additional paid-in capital | 345,468 | 330,262 |
Treasury stock - Common stock voting, at cost, 3,270,512 shares and 2,992,550 shares as of December 31, 2022 and 2021, respectively | (328,326) | (232,712) |
Retained earnings | 1,101,525 | 956,966 |
Accumulated other comprehensive loss | (37,697) | (13,330) |
Total stockholders' equity | 1,081,093 | 1,041,309 |
Total liabilities and stockholders' equity | 1,607,775 | 1,530,452 |
Series A Preferred Stock [Member] | ||
Stockholders' equity | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Allowance for accounts receivable | $ 590 | $ 140 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 4,855,000 | 4,855,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 110,000,000 | 110,000,000 |
Common stock, shares issued | 40,918,660 | 40,911,506 |
Common stock, shares outstanding | 37,648,148 | 37,918,956 |
Treasury stock, shares | 3,270,512 | 2,992,550 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 110,000 | 110,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common Stock Non-Voting [Member] | ||
Common stock, par value | $ 0.003 | $ 0.003 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 0 | 0 |
Common stock, shares outstanding | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Revenues | $ 718,300 | $ 698,951 | $ 689,125 |
Expenses | |||
Employee compensation and benefits | 182,104 | 170,916 | 156,885 |
Depreciation and amortization | 61,446 | 53,447 | 35,996 |
Technology and communications | 52,964 | 42,474 | 34,092 |
Professional and consulting fees | 33,949 | 41,925 | 32,304 |
Occupancy | 14,121 | 13,320 | 13,425 |
Marketing and advertising | 9,977 | 9,059 | 7,940 |
Clearing costs | 17,663 | 16,074 | 21,058 |
General and administrative | 19,200 | 14,501 | 12,697 |
Total expenses | 391,424 | 361,716 | 314,397 |
Operating income (loss) | 326,876 | 337,235 | 374,728 |
Other income (expense) | |||
Interest income | 5,040 | 401 | 2,446 |
Interest expense | (700) | (842) | (1,142) |
Equity in undistributed income of subsidiaries | 1,126 | 0 | 0 |
Other, net | 5,946 | (2,871) | (1,673) |
Total other income (expense) | 11,412 | (3,312) | (369) |
Income before income taxes | 338,288 | 333,923 | 374,359 |
Provision for income taxes | 88,064 | 76,035 | 74,982 |
Net income | $ 250,224 | $ 257,888 | $ 299,377 |
Net income per common share | |||
Basic | $ 6.68 | $ 6.88 | $ 8.01 |
Diluted | 6.65 | 6.77 | 7.85 |
Cash dividends declared per common share | $ 2.80 | $ 2.64 | $ 2.40 |
Weighted average shares outstanding | |||
Basic | 37,468,000 | 37,508,000 | 37,359,000 |
Diluted | 37,643,000 | 38,097,000 | 38,144,000 |
Commissions [Member] | |||
Revenues | |||
Revenues | $ 641,183 | $ 621,008 | $ 634,445 |
Information Services [Member] | |||
Revenues | |||
Revenues | 39,314 | 38,175 | 34,341 |
Post-trade Services [Member] | |||
Revenues | |||
Revenues | 36,877 | 38,922 | 19,460 |
Other [Member] | |||
Revenues | |||
Revenues | $ 926 | $ 846 | $ 879 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 250,224 | $ 257,888 | $ 299,377 |
Net cumulative translation adjustment and foreign currency exchange hedge, net of tax of $0, $(721), and $(1,468), respectively | (24,367) | (8,680) | 6,164 |
Net unrealized gain (loss) on securities available-for-sale, net of tax of $0, $0 and $(172), respectively | 0 | 0 | (544) |
Comprehensive income | $ 225,857 | $ 249,208 | $ 304,997 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign currency exchange hedge, tax expense (benefit) | $ 0 | $ (721) | $ (1,468) |
Securities available-for-sale, tax expense (benefit) | $ 0 | $ 0 | $ (172) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock Voting [Member] | Additional Paid-In Capital [Member] | Treasury Stock - Common Stock Voting [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2019 | $ 770,091 | $ 122 | $ 342,541 | $ (153,388) | $ 591,086 | $ (10,270) |
Net income | 299,377 | 299,377 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | 6,164 | 6,164 | ||||
Unrealized net gain (loss) on securities available-for-sale, net of tax | (544) | (544) | ||||
Stock-based compensation | 25,613 | 25,613 | ||||
Exercise of stock options | 4,007 | 1 | 4,006 | |||
Withholding tax payments on restricted stock vesting and stock option exercises | (42,418) | (42,418) | ||||
Repurchases of common stock | (16,135) | (16,135) | ||||
Cash dividend on common stock | (91,094) | (91,094) | ||||
Ending Balance at Dec. 31, 2020 | 955,061 | 123 | 329,742 | (169,523) | 799,369 | (4,650) |
Net income | 257,888 | 257,888 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (8,680) | (8,680) | ||||
Stock-based compensation | 27,314 | 27,314 | ||||
Exercise of stock options | 7,096 | 7,096 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (33,890) | (33,890) | ||||
Repurchases of common stock | (63,189) | (63,189) | ||||
Cash dividend on common stock | (100,291) | (100,291) | ||||
Ending Balance at Dec. 31, 2021 | 1,041,309 | 123 | 330,262 | (232,712) | 956,966 | (13,330) |
Net income | 250,224 | 250,224 | ||||
Cumulative translation adjustment and foreign currency exchange hedge, net of tax | (24,367) | (24,367) | ||||
Stock-based compensation | 29,864 | 29,864 | ||||
Exercise of stock options | 672 | 672 | ||||
Withholding tax payments on restricted stock vesting and stock option exercises | (23,404) | (23,404) | ||||
Repurchases of common stock | (87,540) | (87,540) | ||||
Treasury stock reclassification | 8,074 | (8,074) | ||||
Cash dividend on common stock | (105,665) | (105,665) | ||||
Ending Balance at Dec. 31, 2022 | $ 1,081,093 | $ 123 | $ 345,468 | $ (328,326) | $ 1,101,525 | $ (37,697) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Cash dividends declared per common share | $ 0.70 | $ 0.66 | $ 0.60 | $ 2.80 | $ 2.64 | $ 2.40 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 250,224 | $ 257,888 | $ 299,377 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 61,446 | 53,447 | 35,996 |
Amortization of operating lease right-of-use assets | 5,708 | 6,799 | 6,842 |
Stock-based compensation expense | 29,864 | 27,314 | 25,613 |
Deferred taxes | (6,547) | 3,118 | 10,099 |
Foreign currency transaction gains | (8,783) | 0 | 0 |
Other | 555 | (466) | (550) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (15,136) | 15,598 | (18,015) |
(Increase) in receivables from broker-dealers, clearing organizations and customers | (47,631) | (156,909) | (182,871) |
(Increase) in prepaid expenses and other assets | (4,249) | 2,214 | (1,977) |
(Decrease) increase in accrued employee compensation | (3,417) | (2,607) | 14,961 |
Increase in payables to broker-dealers, clearing organizations and customers | 74,668 | 95,999 | 133,326 |
(Decrease) Increase in income and other tax liabilities | (4,768) | (5,638) | 16,189 |
Increase in accounts payable, accrued expenses and other liabilities | 11,384 | 215 | 6,006 |
(Decrease) in operating lease liabilities | (6,373) | (7,001) | (5,788) |
Net cash provided by operating activities | 289,231 | 282,091 | 404,489 |
Cash flows from investing activities | |||
Acquisitions, net of cash and cash equivalents acquired | 0 | (17,078) | (23,297) |
Acquisition of equity method investment | (34,400) | 0 | 0 |
Proceeds from maturities and sales, available-for-sale investments | 0 | 0 | 170,657 |
Purchases | 0 | 0 | (32,865) |
Purchases of furniture, equipment and leasehold improvements | (13,142) | (17,493) | (15,010) |
Capitalization of software development costs | (38,730) | (33,123) | (30,618) |
Net cash (used in) provided by investing activities | (86,272) | (67,694) | 68,867 |
Cash flows from financing activities | |||
Cash dividend on common stock | (105,942) | (99,792) | (90,566) |
Exercise of stock options | 672 | 7,096 | 4,007 |
Withholding tax payments on restricted stock vesting and stock option exercises | (23,404) | (33,890) | (42,418) |
Repurchases of common stock | (87,540) | (63,189) | (16,135) |
Payment of contingent consideration | (26,164) | 0 | 0 |
Proceeds from short-term borrowings | 100,000 | 70,348 | 578,356 |
Repayments of short-term borrowings | (100,000) | (70,348) | (578,356) |
Net cash (used in) financing activities | (242,378) | (189,775) | (145,112) |
Effect of exchange rate changes on cash and cash equivalents | (13,484) | (7,105) | 5,553 |
Cash and cash equivalents including restricted cash | |||
Net increase (decrease) for the period | (52,903) | 17,517 | 333,797 |
Beginning of period | 625,567 | 608,050 | 274,253 |
End of period | 572,664 | 625,567 | 608,050 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 88,677 | 70,003 | 45,046 |
Cash paid for interest | 652 | 830 | 1,142 |
Non-cash investing and financing activity: | |||
Exercise of stock options - cashless | 3,845 | 2,750 | 10,866 |
Right-of-use assets obtained in exchange for operating lease liabilities | 1,880 | 1,972 | 727 |
Contingent consideration payable recognized in connection with acquisitions | 0 | 27,947 | 14,665 |
Trading Investments [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) decrease in trading investments | (49,527) | (5,574) | 67,952 |
Mutual Funds Held In Rabbi Trust [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) decrease in trading investments | $ 1,813 | $ (2,306) | $ (2,671) |
Organization and Principal Busi
Organization and Principal Business Activity | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Organization and Principal Business Activity | 1. Organization and Principal Business Activity MarketAxess Holdings Inc. (the “Company” or “MarketAxess”) was incorporated in the State of Delaware on April 11, 2000 . Through its subsidiaries, MarketAxess operates leading electronic trading platforms delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. Over 2,000 institutional investor and broker-dealer firms are active users of MarketAxess’ patented trading technology, accessing global liquidity on its platforms in U.S. investment-grade bonds, U.S. high-yield bonds, emerging market debt, Eurobonds, municipal bonds, U.S. government bonds and other fixed-income securities. Through its Open Trading ® protocols, MarketAxess executes bond trades between and among institutional investor and broker-dealer clients in the leading all-to-all anonymous trading environment for corporate bonds. MarketAxess also offers a number of trading-related products and services, including: Composite+ pricing and other market data products to assist clients with trading decisions; auto-execution and other execution services for clients requiring specialized workflow solutions; connectivity solutions that facilitate straight-through processing; and technology services to optimize trading environments. The Company also provides a range of pre- and post-trade services, including trade matching, trade publication, regulatory transaction reporting and market and reference data across a range of fixed-income and other products. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Such reclassifications are immaterial, individually and in the aggregate, to both current and all previously issued financial statements taken as a whole and have no effect on previously reported net income. Cash and Cash Equivalents The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments include U.S. Treasuries and are carried at fair value, with realized and unrealized gains or losses included in other, net in the Consolidated Statements of Operations. Fair Value Financial Instruments Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, trading securities, foreign currency forward contracts and contingent consideration payables associated with acquisitions. All other financial instruments are short-term in nature and the carrying amounts reported on the Consolidated Statements of Financial Condition approximate fair value. Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers Receivables from broker-dealers, clearing organizations and customers include amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (“securities failed-to-deliver”) and cash deposits held at clearing organizations and clearing brokers to facilitate the settlement and clearance of matched principal transactions. Payables to broker-dealers, clearing organizations and customers include amounts payable for securities not received by the Company from a seller by the settlement date (“securities failed-to-receive”). Securities failed-to-deliver and securities failed-to-receive for transactions executed on a matched principal basis where the Company serves as a counterparty to both the buyer and the seller are recorded on a settlement date basis. The Company presents its securities failed-to-deliver and securities failed-to-receive balances on a net-by-counterparty basis within receivables from and payables to broker-dealers, clearing organizations and customers. The difference between the Company’s trade-date receivables and payables for unsettled matched principal transactions reflects commissions earned and is recorded within accounts receivable, net on a trade date basis. Allowance for Credit Losses All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for credit losses is based on an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific collection issues that have been identified. Account balances are grouped for evaluation based on various risk characteristics, including billing type, legal entity, and geographic region. Additions to the allowance for credit losses are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. Balances that are determined to be uncollectable are written off against the allowance for credit losses. The allowance for credit losses was $ 0.6 million and $ 0.1 million as of December 31, 2022 and 2021, respectively. The provision for bad debts was $ 0.6 million, $ 0.2 million and $ 0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. Write-offs and other charges against the allowance for credit losses were $ 0.1 million for each of the years ended December 31, 2022, 2021 and 2020 . Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years . The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including, among other items, employee compensation and related benefits and third-party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years . The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Cloud Computing Costs The Company capitalizes certain costs associated with cloud computing arrangements, including, among other items, vendor software development costs billed to us that are part of the application development stage. These costs are recorded as a prepaid asset on the balance sheet and are amortized over the period of the hosting service contract, which ranges from one to five years . The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in other, net in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to economically hedge its foreign currency transaction gains and losses. Realized and unrealized gains and losses on these forward contracts are included in other, net in the Consolidated Statements of Operations. The Company records the fair value of the forward contract asset in prepaid expenses and other assets or the fair value of the forward contract liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. Revenue Recognition The Company’s classification of revenues in the Consolidated Statements of Operations represents revenues from contracts with customers disaggregated by type of revenue. The Company has four revenue streams as described below. Commission Revenue – The Company charges its broker-dealer clients variable transaction fees for trades executed on its platforms and, under certain plans, distribution fees or monthly minimum fees to use the platforms for a particular product area. Variable transaction fees are recognized on a trade date basis, are generally calculated as a percentage of the notional dollar volume of bonds traded on the platforms and vary based on the type, size, yield and maturity of the bond traded, as well as individual client incentives. Bonds that are more actively traded or that have shorter maturities generally generate lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. Under the Company’s disclosed trading transaction fee plans, variable transaction fees, distribution fees and unused monthly fee commitments are invoiced and recorded on a monthly basis. For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. The commission is collected upon settlement of the trade, which typically occurs within one to two trading days after the trade date. For the majority of the Company’s U.S. Treasury matched principal trades, commissions are invoiced and recorded on a monthly basis. The following table presents commission revenue by fee type : Year Ended December 31, 2022 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 321,603 $ 333,712 $ 343,427 Open Trading - matched principal trading 175,440 155,465 170,537 U.S. government bonds - matched principal trading 16,978 12,400 12,372 Total variable transaction fees 514,021 501,577 526,337 Distribution fees and unused minimum fees 127,162 119,431 108,108 Total commissions $ 641,183 $ 621,008 $ 634,445 Information services – Information services includes data licensed to the Company’s broker-dealer clients, institutional investor clients and data-only subscribers; professional and consulting services; technology software licenses; and maintenance and support services. The nature and timing of each performance obligation may vary as these contracts are either subscription-based services transferred over time, and may be net of volume-based discounts, or one-time services that are transferred at a point in time. Revenues for services transferred over time are recognized ratably over the contract period as the Company’s performance obligation is met whereas revenues for services transferred at a point in time are recognized in the period the services are provided. Customers are generally billed monthly, quarterly, or annually; revenues billed in advance are deferred and recognized ratably over the contract period. The following table presents information services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 38,452 $ 37,341 $ 32,425 Services transferred at a point in time 862 834 1,916 Total information services revenues $ 39,314 $ 38,175 $ 34,341 Post-trade services – Post-trade services revenue is generated from regulatory transaction reporting, trade publication and trade matching services. Customers are generally billed monthly in arrears and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period. The Company also generates one-time implementation fees for onboarding clients which are invoiced and recognized in the period the implementation is completed. The following table presents post-trade services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 36,835 $ 38,850 $ 19,158 Services transferred at a point in time 42 72 302 Total post-trade services revenues $ 36,877 $ 38,922 $ 19,460 Other revenues – Other revenues primarily includes revenue from telecommunications line charges to broker-dealer clients. Contract liabilities consist of deferred revenues that the Company records when cash payments are received or due in advance of services to be performed. The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2021 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation December 31, 2022 (In thousands) Information services $ 3,528 $ 10,821 $ ( 11,228 ) $ — $ 3,121 Post-trade services 720 16,099 ( 15,876 ) ( 74 ) 869 Total deferred revenue $ 4,248 $ 26,920 $ ( 27,104 ) $ ( 74 ) $ 3,990 The majority of the Company’s contracts are short-term in nature with durations of less than one year. For contracts with original durations extending beyond one year, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 51.7 million as of December 31, 2022. The Company expects to recognize revenue associated with the remaining performance obligations over the next 55 months. Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Forfeitures are recognized as they occur. Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. Tax benefits for uncertain tax positions are recognized when it is more likely than not that the positions will be sustained upon examination based on their technical merits. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations. All tax effects related to share-based payments are recorded in the provision for income taxes in the periods during which the awards are exercised or vest. Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates, customer attrition rates and asset lives. The Company operates as a single reporting unit. Following an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized over their estimated useful lives which range from one to 15 years using either a straight-line or accelerated amortization method based on the pattern of economic benefit the Company expects to realize from such assets. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. Equity Investments and Consolidation The Company evaluates equity investments for potential consolidation under the voting-interest or variable-interest models. The Company consolidates investees over which the Company determines it has control under the voting interest model, generally greater than 50% ownership, or for which the Company is the primary beneficiary under the variable-interest model. The Company uses the equity method of accounting when it exercises significant influence over the investee, but does not have operating control, generally between 20% and 50% ownership. Under the equity method of accounting, original investments are recorded at cost in prepaid expenses and other assets on the Consolidated Statements of Financial Condition and adjusted by the Company’s proportionate share of the investees’ undistributed earnings or losses. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer [Abstract] | |
Regulatory Capital Requirements | 3. Regulatory Capital Requirements One of the Company’s U.S. subsidiaries is registered as a broker-dealer and therefore is subject to the applicable rules and regulations of the SEC and the Financial Industry Regulatory Authority (“FINRA”). These rules contain minimum net capital requirements, as defined in the applicable regulations. Certain of the Company’s foreign subsidiaries are regulated by the Financial Conduct Authority (“FCA”) in the U.K. or other foreign regulators and must maintain financial resources, as defined in the applicable regulations, in excess of the applicable financial resources requirement. As of December 31, 2022, each of the Company’s subsidiaries that are subject to these regulations had net capital or financial resources in excess of their minimum requirements. As of December 31, 2022, the Company’s subsidiaries maintained aggregate net capital and financial resources that were $ 518.2 million in excess of the required levels of $ 27.1 million. The Company’s U.S. broker-dealer subsidiary is required to segregate funds in a special reserve bank account for the benefit of customers pursuant to Rule 15c3-3 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). As of December 31, 2022, the U.S. broker-dealer subsidiary had a balance of $ 50.9 million in its special reserve bank account. This U.S. broker-dealer subsidiary also maintained net capital that was $ 314.1 million in excess of the required level of $ 3.7 million. Each of the Company’s U.S. and foreign regulated subsidiaries are subject to local regulations which generally limit, or require the prior notification to or approval from such regulated entity’s principal regulator before, the repayment of borrowings from the Company or affiliates, paying cash dividends, making loans to the Company or affiliates or otherwise entering into transactions that result in a significant reduction in regulatory net capital or financial resources. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 4. Fair Value Measurements The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2: Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2022 Assets Money market funds $ 59,173 $ — $ — $ 59,173 Trading securities U.S. Treasuries — 74,409 — 74,409 Mutual funds held in rabbi trust — 9,383 — 9,383 Total assets $ 59,173 $ 83,792 $ — $ 142,965 Liabilities Contingent consideration payable $ — $ — $ 12,340 $ 12,340 Foreign currency forward position — 1,688 — 1,688 Total liabilities $ — $ 1,688 $ 12,340 $ 14,028 As of December 31, 2021 Assets Money market funds $ 14,206 $ — $ — $ 14,206 Trading securities U.S. Treasuries — 24,883 — 24,883 Mutual funds held in rabbi trust — 11,195 — 11,195 Total assets $ 14,206 $ 36,078 $ — $ 50,284 Liabilities Contingent consideration payable $ — $ — $ 41,090 $ 41,090 Money market funds are included in cash and cash equivalents on the Consolidated Statements of Financial Condition. Securities classified within Level 2 were valued using a market approach utilizing prices and other relevant information generated by market transactions involving comparable assets. The foreign currency forward contracts are classified within Level 2 as the valuation inputs are based on quoted market prices. The mutual funds held in a rabbi trust represent investments associated with the Company’s deferred cash incentive plan. Liabilities classified within Level 3 reflect contingent consideration payable recognized in connection with acquisitions. Significant unobservable inputs used in the valuation of contingent consideration payable include estimates of client retention, electronic trading volume and variable fees over periods of 18 to 24 months from the acquisition dates. The following table summarizes the change in the Company's Level 3 liabilities for the year ended December 31, 2022: December 31, 2021 Payments Unrealized (Gain)/Loss Realized (Gain)/Loss Foreign Currency Translation December 31, 2022 (In thousands) Contingent consideration payable $ 41,090 $ ( 26,164 ) $ 532 $ ( 1,769 ) $ ( 1,349 ) $ 12,340 The table below presents the range and average significant unobservable inputs used in the valuation of the Company's Level 3 liabilities: Valuation Technique Unobservable Inputs Range Average ($ in thousands) As of December 31, 2022 Contingent consideration payable Discounted cash flows Present value factor 0.99 0.99 April 2022-March 2023 variable fee $ 3,556 - $ 5,658 $ 4,607 Percentage of electronic trading volume 86.0 % - 96.6 % 91.3 % As of December 31, 2021 Contingent consideration payable Discounted cash flows Present value factor 0.95 - 1 0.98 Customer retention rate 84.0 % 84.0 % April 2021-March 2022 variable fee $ 2,703 - $ 3,086 $ 2,895 Percentage of electronic trading volume 86.0 % - 96.6 % 91.3 % The table below presents the carrying value, fair value and fair value hierarchy category of the Company’s financial assets and liabilities that are not measured at fair value on the Consolidated Statements of Financial Condition. The carrying values of the Company’s financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities . Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2022 Financial assets not measured at fair value: Cash and cash equivalents $ 371,573 $ 371,573 $ 371,573 $ — $ — $ 371,573 Cash segregated under federal regulations 50,947 50,947 50,947 — — 50,947 Accounts receivable, net of allowance 78,450 78,450 — 78,450 — 78,450 Receivables from broker-dealers, clearing organizations and customers 476,335 476,335 88,923 387,412 — 476,335 Total $ 977,305 $ 977,305 $ 511,443 $ 465,862 $ — $ 977,305 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 303,993 $ 303,993 $ — $ 303,993 $ — $ 303,993 As of December 31, 2021 Financial assets not measured at fair value: Cash and cash equivalents $ 506,735 $ 506,735 $ 506,735 $ — $ — $ 506,735 Cash segregated under federal regulations 50,159 50,159 50,159 — — 50,159 Accounts receivable, net of allowance 63,881 63,881 — 63,881 — 63,881 Receivables from broker-dealers, clearing organizations and customers 408,346 408,346 68,565 339,781 — 408,346 Total $ 1,029,121 $ 1,029,121 $ 625,459 $ 403,662 $ — $ 1,029,121 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 229,325 $ 229,325 $ — $ 229,325 $ — $ 229,325 During the years ended December 31, 2022 and 2021, there were no transfers between Level 1, Level 2 and Level 3 securities. The Company enters into foreign currency forward contracts as an economic hedge against foreign currency transaction gains and losses in the Consolidated Statements of Operations. These forward contracts are for one-month periods and are used to limit exposure to foreign currency exchange rate fluctuations. The Company records the fair value of the asset in prepaid expenses and other assets or the fair value of the liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. The following table summarizes the Company’s foreign currency forward position : As of December 31, 2022 2021 (In thousands) Notional value $ 62,160 $ — Fair value of notional 60,472 — Fair value of the liability $ 1,688 $ — Realized and unrealized gains and losses on foreign currency forward contracts are included in other, net in the Consolidated Statements of Operations. The Company recorded a realized gain of $ 0.8 million and an unrealized loss of $ 1.7 million, respectively, for the year ended December 31, 2022. The Company maintained a collateral deposit of $ 1.9 million with its counterparty bank as of December 31, 2022, which is included within prepaid expenses and other assets on the Consolidated Statements of Financial Condition. The following table summarizes the Company’s investments: Amortized Gross Gross Fair (In thousands) As of December 31, 2022 Trading securities U.S. Treasuries $ 74,943 $ — $ ( 534 ) $ 74,409 Mutual funds held in rabbi trust 11,474 — ( 2,091 ) 9,383 Total investments $ 86,417 $ — $ ( 2,625 ) $ 83,792 As of December 31, 2021 Trading securities U.S. Treasuries $ 24,994 $ — $ ( 111 ) $ 24,883 Mutual funds held in rabbi trust 9,941 1,254 — 11,195 Total investments $ 34,935 $ 1,254 $ ( 111 ) $ 36,078 The following table summarizes the fair value of the investments based upon the contractual maturities: As of December 31, 2022 2021 (In thousands) Less than one year $ 34,001 $ 11,195 Due in 1 - 5 years 49,791 24,883 Total $ 83,792 $ 36,078 There were no proceeds from the sales and maturities of investments during the year ended December 31, 2022. Proceeds from sales and maturities of investments during the years ended December 31, 2021 and 2020 were $ 19.4 million and $ 261.6 million, respectively. Net unrealized losses on trading securities were $ 2.6 million, $ 0.3 million, $ 0.4 million for the years ended December 31, 2022, 2021 and 2020 , respectively. The Company did no t incur any realized gains or losses on trading securities for the year ended December 31, 2022. Net realized gains were $ 0.1 million and $ 1.7 million for the years ended December 31, 2021 and 2020 , respectively. |
Receivables from and Payables t
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | 12 Months Ended |
Dec. 31, 2022 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | 5. Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers Receivables from and payables to broker-dealers, clearing organizations and customers consisted of the following: As of December 31, 2022 2021 Receivables from broker-dealers, clearing organizations and customers: (In thousands) Securities failed-to-deliver - broker-dealers and clearing organizations $ 144,523 $ 152,766 Securities failed-to-deliver - customers 235,056 182,052 Deposits with clearing organizations and broker-dealers 88,923 68,565 Other 7,833 4,963 Total $ 476,335 $ 408,346 Payables to broker-dealers, clearing organizations and customers: Securities failed-to-receive - broker-dealers and clearing organizations $ 224,816 $ 166,010 Securities failed-to-receive - customers 71,828 59,879 Other 7,349 3,436 Total $ 303,993 $ 229,325 |
Acquisitions and Equity Investm
Acquisitions and Equity Investments | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Equity Investments | 6. Acquisitions and Equity Investments In May 2022, the Company invested $ 34.4 million to acquire a minority ownership stake in RFQ–hub Holdings LLC, an entity formed with a consortium of market participants to support the growth of RFQ-hub, a bilateral multi-asset request for quote platform. The Company possesses significant influence over RFQ–hub Holdings LLC and is accounting for its investment under the equity method of accounting. As of December 31, 2022 , the Company’s investment is recorded at carrying value of $ 35.5 million within prepaid expenses and other assets on the Consolidated Statements of Financial Condition. The Company’s proportionate share of RFQ–hub Holdings LLC’s net earnings was $ 1.1 million for the year ended December 31, 2022, and is recorded within equity in earnings of unconsolidated affiliate on the Consolidated Statements of Operations. On April 9, 2021, the Company acquired MuniBrokers LLC (“MuniBrokers”), a central electronic venue serving municipal bond brokers and dealers. The purchase price consisted of $ 17.1 million in cash paid at closing and up to $ 25.0 million of contingent consideration payable within approximately two years of the acquisition date. The Company accounted for the transaction as a business combination and utilized an independent third-party to assist in determining the fair value of the acquired intangible assets. The accounting purchase price was $ 39.6 million, comprised of $ 17.1 million of cash and $ 22.5 million of contingent consideration payable, which was included within accounts payable, accrued expenses, and other liabilities on the Consolidated Statements of Financial Condition. The Company recorded $ 32.0 million of amortizable intangible assets and $ 7.4 million of goodwill as of the acquisition date. The acquired intangible assets consist of customer relationships and technology and have useful lives ranging from 1 to 15 years. In 2022, the Company recognized a decrease of $ 1.6 million to the contingent consideration payable due to the finalization of the first earn-out period consideration, which was recorded as a gain in other, net on the Consolidated Statements of Operations. In May 2022, the Company made a payment of $ 8.3 million to settle the first earn-out period consideration. As of December 31, 2022, the remaining outstanding contingent consideration payable was $ 12.3 million . On November 30, 2020, the Company acquired Regulatory Services GmbH, the pan-European regulatory reporting business of Deutsche Börse Group (“Regulatory Reporting Hub”). The purchase price consisted of $ 22.5 million in cash paid at closing and up to $ 24.6 million in contingent consideration payable in cash within 18 months of the closing. The Company accounted for the transaction as a purchase of assets and recorded $ 37.4 million in amortizable intangible assets as of the acquisition date. In April 2022, the Company made a final payment of $ 17.9 million to settle the contingent consideration payable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill and intangible assets with indefinite lives were $ 154.8 million as of each of December 31, 2022 and 2021 , respectively. Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following: December 31, 2022 December 31, 2021 Cost Accumulated Net carrying Cost Accumulated Net carrying (In thousands) Customer relationships $ 129,991 $ ( 34,310 ) $ 95,681 $ 132,197 $ ( 19,813 ) $ 112,384 Technology and other intangibles 11,430 ( 9,046 ) 2,384 11,430 ( 7,437 ) 3,993 Total $ 141,421 $ ( 43,356 ) $ 98,065 $ 143,627 $ ( 27,250 ) $ 116,377 Amortization expense associated with identifiable intangible assets was $ 16.4 million, $ 13.4 million and $ 3.9 million for the years ended December 31, 2022, 2021 and 2020, respectively. Annual estimated total amortization expense is $ 17.3 million, $ 14.9 million, $ 12.0 million, $ 10.3 million and $ 9.0 million for the years ended December 31, 2023 through 2027 , respectively. |
Capitalized Software, Furniture
Capitalized Software, Furniture, Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Capitalized Software, Furniture, Equipment and Leasehold Improvements | 8. Capitalized Software, Furniture, Equipment and Leasehold Improvements Capitalized software development costs, furniture, equipment and leasehold improvements, net of accumulated depreciation and amortization, are comprised of the following: As of December 31, 2022 2021 (In thousands) Software development costs $ 218,848 $ 183,998 Computer hardware and related software 37,614 45,986 Office hardware 8,455 8,866 Furniture and fixtures 6,952 7,120 Leasehold improvements 30,660 31,021 302,529 276,991 Accumulated depreciation and amortization ( 202,273 ) ( 180,930 ) Total $ 100,256 $ 96,061 During the years ended December 31, 2022 and 2021, software development costs totaling $ 38.7 million and $ 33.1 million, respectively, were capitalized. Non-capitalized software costs and routine maintenance costs are expensed as incurred and are included in employee compensation and benefits and professional and consulting fees in the Consolidated Statements of Operations. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 9. Income Taxes The provision for income taxes consists of the following: Year Ended December 31, 2022 2021 2020 (In thousands) Current: Federal $ 52,865 $ 36,661 $ 30,215 State and local 20,716 17,238 19,130 Foreign 21,030 19,018 15,538 Total current provision 94,611 72,917 64,883 Deferred: Federal ( 5,830 ) 2,249 7,474 State and local ( 1,350 ) 778 1,439 Foreign 633 91 1,186 Total deferred provision ( 6,547 ) 3,118 10,099 Provision for income taxes $ 88,064 $ 76,035 $ 74,982 Pre-tax income from U.S. operations was $ 236.4 million, $ 234.6 million and $ 288.3 million for the years ended December 31, 2022, 2021 and 2020, respectively. Pre-tax income from foreign operations was $ 101.9 million, $ 99.3 million and $ 86.1 million for the years ended December 31, 2022, 2021 and 2020, respectively. The difference between the U.S. federal statutory tax rate of 21 % and the Company's effective tax rate is as follows: Year Ended December 31, 2022 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes - net of federal benefit 4.6 4.4 4.4 Credits and deductions related to research activities ( 0.4 ) ( 0.4 ) ( 0.3 ) Foreign rate differential benefit ( 0.1 ) ( 0.2 ) ( 0.4 ) Excess tax benefit from stock-based compensation ( 0.1 ) ( 2.9 ) ( 5.4 ) Other, net 1.0 0.9 0.7 Effective tax rate 26.0 % 22.8 % 20.0 % The following is a summary of the Company’s net deferred tax assets: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Stock compensation expense $ 3,451 $ 2,683 Operating lease liabilities 17,842 18,688 Deferred Compensation 2,425 2,876 Other 1,774 128 Total deferred tax assets 25,492 24,375 Valuation allowance — — Net deferred tax assets 25,492 24,375 Deferred tax liabilities: Depreciation ( 9,956 ) ( 9,847 ) Capitalized software development costs ( 3,923 ) ( 9,417 ) Goodwill and intangible assets ( 4,829 ) ( 4,311 ) Operating lease right-of-use assets ( 14,176 ) ( 14,940 ) Deferred tax (liability) asset, net $ ( 7,392 ) $ ( 14,140 ) The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. During the year ended December 31, 2022 , the Company's provision for income taxes included $ 3.2 million of expense related to a settlement with New York State to resolve the 2010 to 2014 audits. The Company is currently under a New York State income tax examination for tax years 2015 through 2017 and a New York City income tax examination for the tax years 2016 through 2018 . At this time, the Company cannot estimate when the examinations will conclude or the impact such examinations will have on the Company’s Consolidated Financial Statements, if any. Generally, other than the New York City and New York State audits, the Company is no longer subject to tax examinations by tax authorities for years prior to 2019. A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 15,089 $ 16,317 $ 6,831 Increases based on tax positions related to the current period — — — Increases based on tax positions related to prior periods 160 — 9,486 (Decreases) based on tax positions related to prior periods — ( 1,228 ) — (Decreases) related to cash settlements with taxing authorities ( 5,414 ) — — Balance at end of year $ 9,835 $ 15,089 $ 16,317 As of December 31, 2022, the Company recorded $ 9.8 million of net unrecognized tax benefits which, if recognized, would affect the Company’s effective tax rate. Due to the uncertainty related to the timing and potential outcome of the audits, the Company cannot reasonably estimate the amount of the unrecognized tax benefit that could be adjusted in the next 12 months. During the years ended December 31, 2022, 2021 and 2020, the Company recognized gross expenses of $ 5.8 million, $ 3.3 million and $ 3.7 million, respectively, in penalties and interest. The Company had $ 7.9 million and $ 8.3 million accrued for the payment of interest and penalties at December 31, 2022 and 2021, respectively. The Company will recognize any U.S. income tax expense the Company may incur on global intangible low-taxed income as income tax expense in the period in which the tax is incurred. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | 10. Stockholders’ Equity Common Stock As of December 31, 2022 and 2021 , the Company had 110,000,000 authorized shares of voting common stock and 10,000,000 authorized shares of non-voting common stock. Voting common stock entitles the holder to one vote per share of common stock held. The following is a summary of the changes in the Company’s outstanding shares of voting common stock: Year Ended December 31, 2022 2021 2020 (In thousands) Outstanding shares of voting common stock at the beginning of year 37,919 38,005 37,936 Exercise of stock options 29 92 177 Issuance of restricted stock, net of cancellations 66 48 56 Shares withheld for withholding tax payments ( 86 ) ( 75 ) ( 125 ) Repurchases ( 280 ) ( 151 ) ( 39 ) Outstanding shares of voting common stock at the end of year 37,648 37,919 38,005 In January 2019, the Board of Directors authorized a new two-year share repurchase program for up to $ 100.0 million, which commenced in April 2019 and expired in March 2021. In January 2021, the Board of Directors authorized a new share repurchase program for up to $ 100.0 million that commenced in April 2021 and was exhausted in January 2022. In January 2022, the Board of Directors authorized a new share repurchase program for up to $ 150.0 million. Shares repurchased under each program will be held in treasury for future use. Dividends During 2022, 2021 and 2020, the Company paid quarterly cash dividends of $ 0.70 per share, $ 0.66 per share and $ 0.60 per share, respectively. Any future declaration and payment of dividends will be at the sole discretion of the Company’s Board of Directors. The Board of Directors may take into account such matters as general business conditions, the Company’s financial results and condition, capital requirements, contractual obligations, and legal and regulatory restrictions on the payment of dividends to the Company’s stockholders or by the Company’s subsidiaries to their respective parent entities, and any such other factors as the Board of Directors may deem relevant. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | 11. Stock-Based Compensation Plans The Company maintains the 2020 Plan which provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units, or other stock-based awards as incentives to encourage employees, consultants and non-employee directors to participate in the long-term success of the Company. As of December 31, 2022, there were 2,476,930 shares available for grant under the 2020 Plan. Total stock-based compensation expense was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Employees: Restricted stock and performance shares $ 24,593 $ 23,041 $ 21,310 Stock options 3,583 2,961 3,100 28,176 26,002 24,410 Non-employee directors: Restricted stock 1,688 1,312 1,203 Total stock-based compensation $ 29,864 $ 27,314 $ 25,613 The Company records stock-based compensation expense for employees in employee compensation and benefits and for non-employee directors in general and administrative expenses in the Consolidated Statements of Operations. Stock Options The exercise price of each option granted is equal to the market price of the Company’s common stock on the date of grant. Generally, option grants have provided for vesting over a three or five -year period. Options generally expire in six or ten years from the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes option-pricing model. The determination of fair value of share-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of highly complex and subjective variables, including the expected stock price volatility over the term of the awards, the risk-free interest rate, the expected dividend yield rate and the expected term. Expected volatilities are based on historical volatility of the Company’s stock. The risk-free interest rate is based on U.S. Treasury securities with a maturity value approximating the expected term of the option. The dividend yield rate is based on the expected annual dividends to be paid divided by the expected stock price. The expected term represents the period of time that options granted are expected to be outstanding based on actual and projected employee stock option exercise behavior. The weighted-average fair value for options granted during 2022, 2021 and 2020 was $ 101.38 , $ 137.66 and $ 91.43 , respectively. The following table represents the assumptions used for the Black-Scholes option-pricing model to determine the per share weighted-average fair value for options granted, excluding the two awards based on the Monte Carlo model discussed below: Year Ended December 31, 2022 2021 2020 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 1.5 % 0.4 % 1.6 % Expected volatility 32.6 % 31.2 % 26.8 % Expected dividend yield 0.7 % 0.4 % 0.6 % In addition to the option grants above, 76,868 stock options were granted to the Company’s President and Chief Operating Officer in January 2019 with an aggregate grant date fair value of $ 2.9 million, as determined by an independent third party using a Monte Carlo simulation model. The exercise price is $ 272.88 for 35,679 of the stock options and $ 294.71 for the remaining 41,189 stock options, which is equal to 125 % and 135 %, respectively, of the fair market value of the Company’s common stock on the grant date. Subject to the grantee’s continued service with the Company, the options will vest and become exercisable on January 22, 2024 . The options expire on July 22, 2024 . Key assumptions used for the Monte Carlo model included a risk-free interest rate of 2.6 %, volatility of 25.8 % and a dividend yield of 0.8 %. In November 2018, 148,524 stock options were granted to the Company’s Chief Executive Officer with a grant date fair value of $ 5.5 million, as determined by an independent third party using a Monte Carlo simulation model. The exercise price is $ 257.78 for 69,113 of the stock options and $ 278.40 for the remaining 79,411 stock options, which is equal to 125 % and 135 %, respectively, of the fair market value of the Company’s stock on the grant date. Subject to the grantee’s continued service with the Company, the options will vest and become exercisable on November 8, 2023 . The options expire on May 8, 2024 . Key assumptions used for the Monte Carlo model included a risk-free interest rate of 3.1 %, volatility of 25.9 % and a dividend yield of 0.8 %. The following table reports stock option activity during the three years ended December 31, 2022 and the intrinsic value as of December 31, 2022: Number of Shares Weighted-Average Exercise Price ($) Remaining Contractual Intrinsic Value ($) (In thousands) Outstanding at December 31, 2019 550,591 175.16 Granted 13,900 368.10 Canceled ( 218 ) 307.52 Exercised ( 176,901 ) 84.07 Outstanding at December 31, 2020 387,372 223.60 Granted 17,897 517.88 Canceled ( 616 ) 394.77 Exercised ( 91,900 ) 107.05 Outstanding at December 31, 2021 312,753 274.35 Granted 23,904 352.15 Canceled ( 1,646 ) 421.08 Exercised ( 28,758 ) 157.08 3,597 Outstanding at December 31, 2022 306,253 290.65 1.9 3,971 Exercisable at December 31, 2022 42,119 276.35 1.9 2,259 The intrinsic value is the amount by which the closing price of the Company’s common stock on December 31, 2022 of $ 278.89 or the price on the day of exercise exceeds the exercise price of the stock options multiplied by the number of shares. As of December 31, 2022, there was $ 4.1 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted-average period of 1.0 year. Service-Based Restricted Stock and Restricted Stock Unit Awards Our annual compensation program includes share-based compensation awards as a component of certain employees’ total compensation. These awards are generally subject to annual vesting requirements over a three-year period beginning at the date of grant, which occurs in the first quarter of each year. Accordingly, the expense is generally amortized over the stated vesting period. In addition, we grant shared-based compensation awards in conjunction with certain new hires and for retention purposes. These awards generally vest over a three-year period and expense is recognized over the requisite service period. Performance Equity Awards The Company grants performance equity awards to certain executives and senior managers of the firm as a component of their total compensation and in conjunction with new hires and for retention purposes. Annual performance equity awards generally vest over a three-year period and contain both performance- and service-based elements. The Company has also granted awards with a five-year vesting period with performance- and service-based elements. In January 2020 and January 2021, annual performance equity awards were granted with three-year performance periods, whereby the final amount that vests will be determined based on the level of achievement by the Company of certain predetermined metrics, including pre-tax adjusted operating margin and market share for the following three fiscal years, including the year of grant. The final awarded pay-out for the awards granted in 2020 was certified at 98.7 % in January 2023. The final awarded pay-out for the awards granted in 2021 will range from zero to 200 %. Subject to the grantee’s continued service, any performance equity awarded to a participant will vest on the three-year anniversary of the grant date. Compensation expense for the three-year performance shares is measured at the grant date and expensed over the requisite service period with performance target achievement assessed at the end of each reporting period. In August 2021, the Chief Financial Officer received a performance equity award of 1,070 target shares in connection with his promotion to Chief Financial Officer. The award is substantially similar to the annual bonus performance equity awards granted in January 2021, except that the performance achievement will be determined using 2022 and 2023 fiscal years only. The award will fully vest on August 1, 2024 after certification of the performance criteria, subject to continued employment by the Chief Financial Officer through such date. In January 2022, annual performance equity awards were granted with a three-year performance period, whereby the final amount that vests will be determined based on the level of achievement by the Company of certain predetermined metrics, including pre-tax adjusted operating margin, U.S. credit market share, and revenue growth excluding U.S. credit for the following three fiscal years, including the year of grant. The final awarded payout for the awards granted in 2022 will range from zero to 200 %. Subject to the grantee’s continued service, any performance equity awarded to a participant will vest on the three-year anniversary of the grant date. Compensation expense for the three-year performance shares is measured at the grant date and expensed over the requisite service period with performance target achievement assessed at the end of each reporting period. In March 2022, the Chief Information Officer received a one-time sign-on equity award consisting, in part, of a performance stock unit award with a target of 3,986 shares. The award is substantially similar to the annual bonus performance equity awards granted in January 2022. The award will fully vest on March 1, 2025 after certification of the performance criteria, subject to continued employment by the Chief Information Officer through such date. The following table reports the Company's performance payout estimates for three-year performance period awards at December 31, 2022 as well as the target and maximum share payouts for each award date granted: Award Date 2022 Estimate Target Maximum January 15, 2020 11,915 12,298 18,447 January 15, 2021 8,776 12,185 24,370 August 1, 2021 969 1,070 2,140 January 31, 2022 15,701 18,155 36,310 March 1, 2022 3,447 3,986 7,972 In addition to the grants above, 18,914 performance shares were granted to the Company’s President and Chief Operating Officer in January 2019 with an aggregate fair value of $ 2.9 million as determined by an independent third party using a Monte Carlo simulation model. The performance share award provides that the number of shares earned will be based on the Company’s achievement of certain share price levels during the five-year performance period. The performance level is $ 272.88 for 8,969 of the performance shares and $ 294.71 for the remaining 9,945 performance shares, which is equal to 125 % and 135 %, respectively, of the fair market value of the Company’s common stock on the grant date. Each of the performance levels have been achieved. Subject to the grantee’s continued service with the Company, earned shares will vest on January 22, 2024 . Key assumptions used for the Monte Carlo simulation included a risk-free interest rate of 2.6 %, volatility of 25.9 % and a dividend yield of 0.8 %. In November 2018, 37,742 performance shares were granted to the Company’s Chief Executive Officer with a grant date fair value of $ 5.5 million as determined by an independent third party using a Monte Carlo simulation model. The performance share award provides that the number of shares earned will be based on the Company’s achievement of certain share price levels during the five-year performance period. The performance level is $ 257.78 for 17,942 of the performance shares and $ 278.40 for the remaining 19,800 performance shares, which is equal to 125 % and 135 %, respectively, of the fair market value of the Company’s stock on the grant date. Each of the performance levels have been achieved. Subject to the grantee’s continued service with the Company, earned shares will vest on November 8, 2023 . Key assumptions used for the Monte Carlo model included a risk-free interest rate of 3.1 %, volatility of 26.1 % and a dividend yield of 0.8 %. The following table reports restricted stock and performance share activity during the three years ended December 31, 2022: Number of Restricted Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2019 346,032 $ 154.27 Granted 38,907 Performance share pay-out 19,401 Canceled ( 3,480 ) Vested ( 170,213 ) Outstanding at December 31, 2020 230,647 $ 224.63 Granted 47,142 Performance share pay-out — Canceled ( 3,911 ) Vested ( 111,268 ) Outstanding at December 31, 2021 162,610 $ 316.56 Granted 72,861 Performance share pay-out — Canceled ( 8,513 ) Vested ( 64,602 ) Outstanding at December 31, 2022 162,356 $ 321.04 As of December 31, 2022, there was $ 33.5 million of total unrecognized compensation expense related to non-vested restricted stock and performance shares. That cost is expected to be recognized over a weighted-average period of 1.4 years. Employee Stock Purchase Plans The Company previously maintained the MarketAxess Holdings Inc. 2015 Employee Stock Purchase Plan (the "Prior ESPP"), a non-qualified employee stock purchase plan for non-executive employees. Under the Prior ESPP, participants were granted the right to purchase shares of the Company's common stock based on the fair market value on the last day of the six-month offering period. On the purchase date, the Company granted to the participants a number of restricted stock units equal to 20 % of the aggregate shares purchased by the participant. These matching restricted stock units vested over a one-year period. The Company issued 483 , 806 and 729 matching restricted stock units in connection with the Prior ESPP for the years ended December 31, 2022, 2021 and 2020 , respectively. In January 2022, the Company's Compensation & Talent Committee terminated the Prior ESPP with an effective date of February 28, 2022 . In June 2022, the Company’s stockholders approved the MarketAxess Holdings Inc. 2022 Employee Stock Purchase Plan (the “ESPP”) pursuant to which a total of 121,221 shares of the Company’s Common Stock will be made available for purchase by employees. The ESPP is intended to qualify as an “employee stock purchase plan” meeting the requirements of Section 423 of the Internal Revenue Code. The ESPP was adopted by the Company’s Board of Directors in April 2022 and approved by the Company’s stockholders in June 2022. The ESPP has a series of six-month offering periods, with a new offering period beginning on the first trading day on or after February 16 and August 16 of each year. Subject to certain limitations, employees may contribute up to $ 2,000 of such employee’s total eligible compensation per month towards the purchase of common stock via payroll deductions. Purchase dates occur on the first trading day on or after February 15 and August 15 of each year and shares are purchased at a 15 % discount off the lesser of: (i) the fair market value per share on the first day of each offering period; and (ii) the fair market value per share on the purchase date, but in no event less than par value. The first offering period under the ESPP began on August 16, 2022. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 12. Earnings Per Share The following table sets forth basic and diluted weighted average shares outstanding used to compute earnings per share: Year Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Basic weighted average shares outstanding 37,468 37,508 37,359 Dilutive effect of stock options and restricted stock 175 589 785 Diluted weighted average shares outstanding 37,643 38,097 38,144 Basic earnings per share $ 6.68 $ 6.88 $ 8.01 Diluted earnings per share $ 6.65 $ 6.77 $ 7.85 Stock options and restricted stock totaling 310,447 shares, 41,240 shares and 21,127 shares for the years ended December 31, 2022, 2021 and 2020 , respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. The computation of diluted shares can vary among periods due, in part, to the change in the average price of the Company’s common stock. |
Credit Agreements and Short-ter
Credit Agreements and Short-term Financing | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Credit Agreements and Short-term Financing | 13. Credit Agreements and Short-term Financing Prior Revolving Credit Agreements In October 2015, the Company entered into an amended and restated credit agreement (the “2015 Credit Agreement”) that provided for revolving loans and letters of credit up to an aggregate of $ 100.0 million. The 2015 Credit Agreement matured on November 13, 2020 and the Company entered into a new one-year credit agreement (the “2020 Credit Agreement”) with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent, that provided aggregate commitments totaling $ 500.0 million, consisting of a revolving credit facility and a $ 5.0 million letter of credit sub-limit for standby letters of credit. Borrowings under the 2020 Credit Agreement bore interest at a rate per annum equal to the base rate or adjusted LIBOR plus an applicable margin that varies with the Company’s consolidated total leverage ratio. The 2020 Credit Agreement required that the Company satisfy certain covenants, which include leverage ratios and minimum earnings before interest, tax, and depreciation and amortization (“EBITDA”) requirements. The Company did not incur any interest expense under the 2020 Credit Agreement for the year ended December 31, 2021. The Company incurred $ 0.8 million of interest expense under the 2015 Credit Agreement for the year ended December 31, 2020. 2021 Credit Agreement On October 15, 2021, the Company replaced the 2020 Credit Agreement with a new three-year revolving credit facility (the “2021 Credit Agreement”) provided by a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent, which provides aggregate commitments totaling $ 500.0 million, consisting of a revolving credit facility and a $ 5.0 million letter of credit sub-limit for standby letters of credit. The 2021 Credit Agreement will mature on October 15, 2024 , with the Company’s option to request up to two additional 364 -day extensions at the discretion of each lender and subject to customary conditions. Subject to satisfaction of certain specified conditions, the Company is permitted to upsize the 2021 Credit Agreement by up to $ 250.0 million in total . As of December 31, 2022 , the Company had no letters of credit outstanding and $ 500.0 million in available borrowing capacity under the 2021 Credit Agreement. Borrowings under the 2021 Credit Agreement will bear interest at a rate per annum equal to the base rate or adjusted LIBOR plus an applicable margin that varies with the Company’s consolidated total leverage ratio. The 2021 Credit Agreement requires that the Company satisfy certain covenants, which include a leverage ratio. The Company incurred $ 0.3 million of interest expense under the 2021 Credit Agreement for the year ended December 31, 2022 . The Company did no t incur any interest expense under the 2021 Credit Agreement for the year ended December 31, 2021. Collateralized Agreement In connection with its self-clearing operations, the Company’s U.S. broker-dealer subsidiary entered into an agreement (the “Collateralized Agreement”) with its settlement bank to provide loans to the subsidiary in amounts up to an aggregate of $ 200.0 million on an uncommitted basis. Borrowings under the Collateralized Agreement are collateralized by securities pledged by the Company’s broker-dealer subsidiary to the settlement bank, subject to applicable haircuts and concentration limits. Borrowings under the Collateralized Agreement will bear interest at a base rate per annum equal to the higher of the upper range of the Federal Funds Rate, 0.25% or one-month Secured Overnight Financing Rate (“SOFR” ), plus 1.00 %. The Company did no t incur any interest expense on borrowings under the Collateralized Agreement during the year ended December 31, 2022. The Company incurred $ 0.1 million of interest expense on borrowings under the Collateralized Agreement for each of the years ended December 31, 2021 and 2020. As of December 31, 2022 the Company had no borrowings outstanding and $ 200.0 million in available borrowing capacity under the Collateralized Agreement. Short-term Financing Under arrangements with their settlement banks, certain of the Company’s U.S. and U.K. operating subsidiaries may receive overnight financing in the form of bank overdrafts. The Company incurred interest expense on such overnight financing of $ 0.4 million, $ 0.8 million and $ 0.3 million during the years ended December 31, 2022, 2021 and 2020, respectively. As of December 31, 2022 , the Company had no overdrafts payable outstanding. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 14. Leases The Company has operating leases for corporate offices with initial lease terms ranging from one-year to 15 years. Certain leases contain options to extend the initial term at the Company’s discretion . The Company accounts for the option to extend when it is reasonably certain of being exercised. The Company’s lease agreements do not contain any material residual value guarantees, restrictions or covenants. The following table presents the components of lease expense for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, Lease cost: Classification 2022 2021 2020 (In thousands) Operating lease cost Occupancy $ 13,015 $ 13,202 $ 13,455 Operating lease cost for subleased/assigned properties Other, net 469 2,054 2,404 Variable lease costs Occupancy 96 13 26 Sublease income for subleased/assigned properties Other, net ( 405 ) ( 2,079 ) ( 2,420 ) Net lease cost $ 13,175 $ 13,190 $ 13,465 The Company determines whether an arrangement is, or includes, a lease at contract inception. Operating lease right-of-use assets and liabilities are recognized at commencement date and are initially measured based on the present value of lease payments over the defined lease term. As the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the adoption date in determining the present value of lease payments. The weighted average remaining lease term and weighted average discount rate are as follows: As of December 31, Lease Term and Discount Rate 2022 2021 Weighted average remaining lease term (in years) 10.6 11.5 Weighted average discount rate 5.9 % 5.9 % The following table presents the maturity of lease liabilities as of December 31, 2022: (In thousands) 2023 $ 11,001 2024 11,481 2025 11,289 2026 10,790 2027 8,464 2028 and thereafter 59,630 Total lease payments 112,655 Less: imputed interest 29,979 Present value of lease liabilities $ 82,676 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 15. Commitments and Contingencies Legal In the normal course of business, the Company and its subsidiaries included in the consolidated financial statements may be involved in various lawsuits, proceedings and regulatory examinations. The Company assesses its liabilities and contingencies in connection with outstanding legal proceedings, if any, utilizing the latest information available. For matters where it is probable that the Company will incur a material loss and the amount can be reasonably estimated, the Company will establish an accrual for the loss. Once established, the accrual will be adjusted to reflect any relevant developments. When a loss contingency is not both probable and estimable, the Company does not establish an accrual. Based on currently available information, the outcome of the Company’s outstanding matters is not expected to have a material adverse impact on the Company’s financial position. It is not presently possible to determine the ultimate exposure to these matters and there is no assurance that the resolution of the outstanding matters will not significantly exceed any reserves accrued by the Company. Other The Company, through certain of its subsidiaries, executes bond transactions between its institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller in trades. The Company’s U.S. broker-dealer subsidiary operates under a self-clearing model for the settlement of such transactions. The Company’s subsidiaries also settle their transactions through third-party clearing brokers or settlement agents. Settlement typically occurs within one to two trading days after the trade date. Cash settlement of the transaction occurs upon receipt or delivery of the underlying instrument that was traded. Under both the self-clearing and the third-party clearing models, the Company may be exposed to credit risk in the event a counterparty does not fulfill its obligation to complete a transaction or if there is an error in executing a matched principal transaction. Pursuant to the terms of the securities clearing agreements, each third-party clearing broker has the right to charge the Company for any losses they suffer resulting from a counterparty’s failure on any of the Company’s trades. The Company did not record any liabilities or losses with regard to counterparty failures for the three-year period ended December 31, 2022. In the normal course of business, the Company enters into contracts that contain a variety of representations, warranties and indemnification provisions. The Company’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Company that have not yet occurred. However, based on experience, the Company expects the risk of loss to be remote . |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 16. Segment and Geographic Information The Company operates electronic platforms for the trading of fixed-income securities and provides related data, analytics, compliance tools and post-trade services. The Company considers its operations to constitute a single business segment because of the highly integrated nature of these products and services, the financial markets in which the Company competes and the Company’s worldwide business activities. The Company believes that results by geographic region or client sector are not necessarily meaningful in understanding its business. For the years ended December 31, 2022, 2021 and 2020, the U.K. was the only individual foreign country in which the Company had a subsidiary that accounted for 10 % or more of the total revenues or total long-lived assets. Revenues and long-lived assets are attributed to a geographic area based on the location of the particular subsidiary. Long-lived assets are defined as furniture, equipment, leasehold improvements and capitalized software . Revenues for the three years ended December 31, 2022, 2021 and 2020 and long-lived assets as of December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Revenues Americas $ 581,935 $ 568,918 $ 583,164 Europe 119,112 110,068 89,751 Asia 17,253 19,965 16,210 Total $ 718,300 $ 698,951 $ 689,125 As of December 31, 2022 2021 (In thousands) Long-lived assets, as defined Americas $ 82,008 $ 75,328 Europe 17,723 20,547 Asia 525 186 Total $ 100,256 $ 96,061 |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plans | 17. Retirement and Deferred Compensation Plans The Company, through its U.S. and U.K. subsidiaries, offers its employees the opportunity to invest in defined contribution plans. For the years ended December 31, 2022, 2021 and 2020, the Company contributed $ 6.1 million, $ 5.8 million and $ 4.0 million, respectively, to the plans. The Company offers a non-qualified deferred cash incentive plan to certain officers and other employees. Under the plan, eligible employees may defer up to 100 % of their annual cash incentive pay. The Company has elected to fund its deferred compensation obligations through a rabbi trust. The rabbi trust is subject to creditor claims in the event of insolvency, but such assets are not available for general corporate purposes. Assets held in the rabbi trust are invested in mutual funds, as selected by the participants, which are designated as trading securities and carried at fair value. As of December 31, 2022 and 2021, the fair value of the mutual fund investments and deferred compensation obligations were $ 9.4 million and $ 11.2 million, respectively. Changes in the fair value of securities held in the rabbi trust and offsetting increases or decreases in the deferred compensation obligation are recognized in other, net in the Company’s Consolidated Statements of Operations. |
Cash and Cash Equivalents and R
Cash and Cash Equivalents and Restricted Cash | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents and Restricted Cash | 18. Cash and Cash Equivalents and Restricted Cash The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Consolidated Statements of Cash Flows: As of December 31, Statement of Financial Condition Location 2022 2021 2020 (In thousands) Cash and cash equivalents Cash and cash equivalents $ 430,746 $ 506,735 $ 460,858 Cash segregated for regulatory purposes Cash segregated under federal regulations 50,947 50,159 50,059 Deposits with clearing organizations and broker-dealers Receivables from broker-dealers, clearing organizations and customers 88,923 68,565 97,043 Other deposits Prepaid expenses and other assets 2,048 108 90 Total $ 572,664 $ 625,567 $ 608,050 |
Parent Company Information
Parent Company Information | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Information | 19. Parent Company Information The following tables present Parent Company-only financial information that should be read in conjunction with the consolidated financial statements of the Company. MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Financial Condition As of December 31, 2022 December 31, 2021 (In thousands) ASSETS Cash and cash equivalents $ 43,909 $ 61,820 Investments, at fair value 5,343 6,327 Accounts receivable 769 — Receivable from subsidiaries 8,962 3,488 Intangible assets, net of accumulated amortization 23 25 Furniture, equipment, leasehold improvements and capitalized 19,557 21,596 Operating lease right-of-use assets 57,402 60,753 Investments in subsidiaries 985,222 982,029 Prepaid expenses and other assets 41,511 4,810 Income and other tax receivable 11,474 1,763 Total assets $ 1,174,172 $ 1,142,611 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accrued employee compensation $ 9,693 $ 11,065 Income and other tax liabilities 12 5,026 Accounts payable, accrued expenses and other liabilities 11,087 9,233 Operating lease liabilities 72,287 75,978 Total liabilities 93,079 101,302 Stockholders' equity Preferred stock — — Series A Preferred Stock — — Common stock voting 123 123 Common stock non-voting — — Additional paid-in capital 345,468 330,262 Treasury stock ( 328,326 ) ( 232,712 ) Retained earnings 1,101,525 956,966 Accumulated other comprehensive loss ( 37,697 ) ( 13,330 ) Total stockholders' equity 1,081,093 1,041,309 Total liabilities and stockholders' equity $ 1,174,172 $ 1,142,611 MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income Year Ended December 31, 2022 2021 2020 (In thousands) Dividends from subsidiaries $ 257,200 $ 173,000 $ 30,000 Expenses Employee compensation and benefits 17,655 17,887 19,710 Depreciation and amortization 2,136 2,123 2,068 Professional and consulting fees 5,528 7,081 7,332 General and administrative 3,081 3,620 2,723 Total expenses 28,400 30,711 31,833 Operating income (loss) 228,800 142,289 ( 1,833 ) Other income (expense) Interest income 272 132 2,799 Interest expense ( 271 ) — ( 805 ) Equity in earnings of unconsolidated affiliate 1,126 — — Other, net ( 2,633 ) ( 2,950 ) ( 318 ) Total other income (expense) ( 1,506 ) ( 2,818 ) 1,676 Income (loss) before income taxes and equity in undistributed earnings of subsidiaries 227,294 139,471 ( 157 ) Benefit from income taxes ( 7,710 ) ( 6,472 ) ( 23,444 ) Income before equity in undistributed income of subsidiaries 235,004 145,943 23,287 Equity in undistributed income of subsidiaries 15,220 111,945 276,090 Net income 250,224 257,888 299,377 Other comprehensive income (loss), net ( 24,367 ) ( 8,680 ) 5,620 Comprehensive income $ 225,857 $ 249,208 $ 304,997 MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Cash Flows Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows from operating activities Net income $ 250,224 $ 257,888 $ 299,377 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,136 2,123 2,068 Amortization of operating lease right-of-use assets 3,347 4,484 4,117 Stock-based compensation expense 12,554 12,706 10,834 Deferred taxes ( 5,076 ) 1,712 3,644 Equity in undistributed income of subsidiaries ( 15,220 ) ( 111,945 ) ( 276,090 ) Other 441 — ( 671 ) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable ( 769 ) 178 ( 115 ) Decrease (increase) in receivable from subsidiaries 7,931 47,371 ( 25,049 ) (Increase) in prepaid expenses and other assets ( 1,175 ) ( 219 ) ( 1,085 ) Decrease (increase) in mutual funds held in rabbi trust 984 ( 1,516 ) ( 1,328 ) (Increase) decrease in income and other tax receivables ( 9,711 ) 7,265 ( 1,240 ) (Decrease) increase in accrued employee compensation ( 1,372 ) 824 3,698 Increase (decrease) in income and other tax liabilities 62 ( 143 ) 6,676 Increase (decrease) in accounts payable, accrued expenses and other liabilities 443 ( 607 ) ( 442 ) (Decrease) in operating lease liabilities ( 3,689 ) ( 4,673 ) ( 4,055 ) Net cash provided by operating activities 241,110 215,449 20,339 Cash flows from investing activities Acquisition of business, net of cash and cash equivalents acquired — ( 17,079 ) — Acquisition of equity method investment ( 34,400 ) — — Investments in subsidiaries ( 8,326 ) — — Available-for-sale investments Proceeds from maturities and sales — — 170,657 Purchases — — ( 32,865 ) Purchases of furniture, equipment and leasehold improvements ( 96 ) ( 198 ) ( 337 ) Net cash (used in) provided by investing activities ( 42,822 ) ( 17,277 ) 137,455 Cash flows from financing activities Cash dividend on common stock ( 105,942 ) ( 99,791 ) ( 90,566 ) Exercise of stock options 672 7,096 4,007 Withholding tax payments on restricted stock vesting and stock option exercises ( 23,404 ) ( 33,890 ) ( 42,418 ) Repurchases of common stock ( 87,540 ) ( 63,189 ) ( 16,135 ) Proceeds from short-term borrowings 100,000 — 348,000 Repayments of short-term borrowings ( 100,000 ) — ( 348,000 ) Net cash (used in) financing activities ( 216,214 ) ( 189,774 ) ( 145,112 ) Effect of exchange rate changes on investments 15 ( 2,324 ) ( 5,176 ) Cash and cash equivalents including restricted cash Net increase (decrease) for the period ( 17,911 ) 6,073 7,506 Beginning of period 61,820 55,747 48,241 End of period $ 43,909 $ 61,820 $ 55,747 Supplemental cash flow information: Cash paid for income taxes $ 65,764 $ 41,103 $ 32,674 Cash paid for interest 271 — 805 Non-cash investing and financing activity: Exercise of stock options - cashless 3,845 2,750 10,866 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany transactions and balances have been eliminated. Certain reclassifications have been made to the prior periods’ consolidated financial statements in order to conform to the current period presentation. Such reclassifications are immaterial, individually and in the aggregate, to both current and all previously issued financial statements taken as a whole and have no effect on previously reported net income. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less. |
Investments | Investments The Company determines the appropriate classification of securities at the time of purchase which are recorded in the Consolidated Statements of Financial Condition on the trade date. Securities are classified as available-for-sale or trading. Available-for-sale investments are carried at fair value with the unrealized gains or losses reported in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Trading investments include U.S. Treasuries and are carried at fair value, with realized and unrealized gains or losses included in other, net in the Consolidated Statements of Operations. |
Fair Value Financial Instruments | Fair Value Financial Instruments Fair value is defined as “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.” A three-tiered hierarchy for determining fair value has been established that prioritizes inputs to valuation techniques used in fair value calculations. The three levels of inputs are defined as Level 1 (unadjusted quoted prices for identical assets or liabilities in active markets), Level 2 (inputs that are observable in the marketplace other than those inputs classified in Level 1) and Level 3 (inputs that are unobservable in the marketplace). The Company’s financial assets and liabilities measured at fair value on a recurring basis consist of its money market funds, trading securities, foreign currency forward contracts and contingent consideration payables associated with acquisitions. All other financial instruments are short-term in nature and the carrying amounts reported on the Consolidated Statements of Financial Condition approximate fair value. |
Receivables from and Payables to Broker- dealers, Clearing Organizations and Customers | Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers Receivables from broker-dealers, clearing organizations and customers include amounts receivable for securities not delivered by the Company to the purchaser by the settlement date (“securities failed-to-deliver”) and cash deposits held at clearing organizations and clearing brokers to facilitate the settlement and clearance of matched principal transactions. Payables to broker-dealers, clearing organizations and customers include amounts payable for securities not received by the Company from a seller by the settlement date (“securities failed-to-receive”). Securities failed-to-deliver and securities failed-to-receive for transactions executed on a matched principal basis where the Company serves as a counterparty to both the buyer and the seller are recorded on a settlement date basis. The Company presents its securities failed-to-deliver and securities failed-to-receive balances on a net-by-counterparty basis within receivables from and payables to broker-dealers, clearing organizations and customers. The difference between the Company’s trade-date receivables and payables for unsettled matched principal transactions reflects commissions earned and is recorded within accounts receivable, net on a trade date basis. |
Allowance for Credit Losses | Allowance for Credit Losses All accounts receivable have contractual maturities of less than one year and are derived from trading-related fees and commissions and revenues from products and services. The Company continually monitors collections and payments from its customers and maintains an allowance for doubtful accounts. The allowance for credit losses is based on an estimate of the amount of potential credit losses in existing accounts receivable, as determined from a review of aging schedules, past due balances, historical collection experience and other specific collection issues that have been identified. Account balances are grouped for evaluation based on various risk characteristics, including billing type, legal entity, and geographic region. Additions to the allowance for credit losses are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations. Balances that are determined to be uncollectable are written off against the allowance for credit losses. The allowance for credit losses was $ 0.6 million and $ 0.1 million as of December 31, 2022 and 2021, respectively. The provision for bad debts was $ 0.6 million, $ 0.2 million and $ 0.5 million for the years ended December 31, 2022, 2021 and 2020, respectively. Write-offs and other charges against the allowance for credit losses were $ 0.1 million for each of the years ended December 31, 2022, 2021 and 2020 . |
Depreciation and Amortization | Depreciation and Amortization Fixed assets are carried at cost less accumulated depreciation. The Company uses the straight-line method of depreciation over three to seven years . The Company amortizes leasehold improvements on a straight-line basis over the lesser of the life of the improvement or the remaining term of the lease. |
Software Development Costs | Software Development Costs The Company capitalizes certain costs associated with the development of internal use software, including, among other items, employee compensation and related benefits and third-party consulting costs at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. Once the product is ready for its intended use, such costs are amortized on a straight-line basis over three years . The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. |
Cloud Computing Costs | Cloud Computing Costs The Company capitalizes certain costs associated with cloud computing arrangements, including, among other items, vendor software development costs billed to us that are part of the application development stage. These costs are recorded as a prepaid asset on the balance sheet and are amortized over the period of the hosting service contract, which ranges from one to five years . The Company reviews the amounts capitalized for impairment whenever events or changes in circumstances indicate that the carrying amounts of the assets may not be recoverable. |
Foreign Currency Translation and Forward Contracts | Foreign Currency Translation and Forward Contracts Assets and liabilities denominated in foreign currencies are translated using exchange rates at the end of the period; revenues and expenses are translated at average monthly rates. Gains and losses on foreign currency translation are a component of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Transaction gains and losses are recorded in other, net in the Consolidated Statements of Operations. The Company enters into foreign currency forward contracts to economically hedge its foreign currency transaction gains and losses. Realized and unrealized gains and losses on these forward contracts are included in other, net in the Consolidated Statements of Operations. The Company records the fair value of the forward contract asset in prepaid expenses and other assets or the fair value of the forward contract liability in accounts payable, accrued expenses and other liabilities in the Consolidated Statements of Financial Condition. |
Revenue Recognition | Revenue Recognition The Company’s classification of revenues in the Consolidated Statements of Operations represents revenues from contracts with customers disaggregated by type of revenue. The Company has four revenue streams as described below. Commission Revenue – The Company charges its broker-dealer clients variable transaction fees for trades executed on its platforms and, under certain plans, distribution fees or monthly minimum fees to use the platforms for a particular product area. Variable transaction fees are recognized on a trade date basis, are generally calculated as a percentage of the notional dollar volume of bonds traded on the platforms and vary based on the type, size, yield and maturity of the bond traded, as well as individual client incentives. Bonds that are more actively traded or that have shorter maturities generally generate lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. Under the Company’s disclosed trading transaction fee plans, variable transaction fees, distribution fees and unused monthly fee commitments are invoiced and recorded on a monthly basis. For Open Trading trades that the Company executes between and among institutional investor and broker-dealer clients on a matched principal basis by serving as counterparty to both the buyer and the seller, the Company earns its commission through the difference in price between the two trades. The commission is collected upon settlement of the trade, which typically occurs within one to two trading days after the trade date. For the majority of the Company’s U.S. Treasury matched principal trades, commissions are invoiced and recorded on a monthly basis. The following table presents commission revenue by fee type : Year Ended December 31, 2022 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 321,603 $ 333,712 $ 343,427 Open Trading - matched principal trading 175,440 155,465 170,537 U.S. government bonds - matched principal trading 16,978 12,400 12,372 Total variable transaction fees 514,021 501,577 526,337 Distribution fees and unused minimum fees 127,162 119,431 108,108 Total commissions $ 641,183 $ 621,008 $ 634,445 Information services – Information services includes data licensed to the Company’s broker-dealer clients, institutional investor clients and data-only subscribers; professional and consulting services; technology software licenses; and maintenance and support services. The nature and timing of each performance obligation may vary as these contracts are either subscription-based services transferred over time, and may be net of volume-based discounts, or one-time services that are transferred at a point in time. Revenues for services transferred over time are recognized ratably over the contract period as the Company’s performance obligation is met whereas revenues for services transferred at a point in time are recognized in the period the services are provided. Customers are generally billed monthly, quarterly, or annually; revenues billed in advance are deferred and recognized ratably over the contract period. The following table presents information services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 38,452 $ 37,341 $ 32,425 Services transferred at a point in time 862 834 1,916 Total information services revenues $ 39,314 $ 38,175 $ 34,341 Post-trade services – Post-trade services revenue is generated from regulatory transaction reporting, trade publication and trade matching services. Customers are generally billed monthly in arrears and revenue is recognized in the period transactions are processed. Revenues billed in advance are deferred and recognized ratably over the contract period. The Company also generates one-time implementation fees for onboarding clients which are invoiced and recognized in the period the implementation is completed. The following table presents post-trade services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 36,835 $ 38,850 $ 19,158 Services transferred at a point in time 42 72 302 Total post-trade services revenues $ 36,877 $ 38,922 $ 19,460 Other revenues – Other revenues primarily includes revenue from telecommunications line charges to broker-dealer clients. Contract liabilities consist of deferred revenues that the Company records when cash payments are received or due in advance of services to be performed. The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2021 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation December 31, 2022 (In thousands) Information services $ 3,528 $ 10,821 $ ( 11,228 ) $ — $ 3,121 Post-trade services 720 16,099 ( 15,876 ) ( 74 ) 869 Total deferred revenue $ 4,248 $ 26,920 $ ( 27,104 ) $ ( 74 ) $ 3,990 The majority of the Company’s contracts are short-term in nature with durations of less than one year. For contracts with original durations extending beyond one year, the aggregate amount of the transaction price allocated to remaining performance obligations was $ 51.7 million as of December 31, 2022. The Company expects to recognize revenue associated with the remaining performance obligations over the next 55 months. |
Stock-Based Compensation | Stock-Based Compensation The Company measures and recognizes compensation expense for all share-based payment awards based on their estimated fair values measured as of the grant date. These costs are recognized as an expense in the Consolidated Statements of Operations over the requisite service period, which is typically the vesting period, with an offsetting increase to additional paid-in capital. Forfeitures are recognized as they occur. |
Income Taxes | Income Taxes Income taxes are accounted for using the asset and liability method. Deferred income taxes reflect the net tax effects of temporary differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when such differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is recognized against deferred tax assets if it is more likely than not that such assets will not be realized in future years. Tax benefits for uncertain tax positions are recognized when it is more likely than not that the positions will be sustained upon examination based on their technical merits. The Company recognizes interest and penalties related to unrecognized tax benefits in the provision for income taxes in the Consolidated Statements of Operations. All tax effects related to share-based payments are recorded in the provision for income taxes in the periods during which the awards are exercised or vest. |
Business Combinations, Goodwill and Intangible Assets | Business Combinations, Goodwill and Intangible Assets Business combinations are accounted for under the purchase method of accounting. The total cost of an acquisition is allocated to the underlying net assets based on their respective estimated fair values. The excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Determining the fair value of certain assets acquired and liabilities assumed requires judgment and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates, customer attrition rates and asset lives. The Company operates as a single reporting unit. Following an acquisition, goodwill no longer retains its identification with a particular acquisition, but instead becomes identifiable with the entire reporting unit. As a result, all of the fair value of the Company is available to support the value of goodwill. An impairment review of goodwill is performed on an annual basis, at year-end, or more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized over their estimated useful lives which range from one to 15 years using either a straight-line or accelerated amortization method based on the pattern of economic benefit the Company expects to realize from such assets. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment. |
Equity Investments and Consolidation | Equity Investments and Consolidation The Company evaluates equity investments for potential consolidation under the voting-interest or variable-interest models. The Company consolidates investees over which the Company determines it has control under the voting interest model, generally greater than 50% ownership, or for which the Company is the primary beneficiary under the variable-interest model. The Company uses the equity method of accounting when it exercises significant influence over the investee, but does not have operating control, generally between 20% and 50% ownership. Under the equity method of accounting, original investments are recorded at cost in prepaid expenses and other assets on the Consolidated Statements of Financial Condition and adjusted by the Company’s proportionate share of the investees’ undistributed earnings or losses. Equity investments are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the investment may not be recoverable. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed by dividing the net income attributable to common stock by the weighted-average number of shares of common stock outstanding during the period. For purposes of computing diluted earnings per share, the weighted-average shares outstanding of common stock reflects the dilutive effect that could occur if convertible securities or other contracts to issue common stock were converted into or exercised for common stock. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Commission Revenue by Fee Type | The following table presents commission revenue by fee type : Year Ended December 31, 2022 2021 2020 (In thousands) Commission revenue by fee type Variable transaction fees Disclosed trading $ 321,603 $ 333,712 $ 343,427 Open Trading - matched principal trading 175,440 155,465 170,537 U.S. government bonds - matched principal trading 16,978 12,400 12,372 Total variable transaction fees 514,021 501,577 526,337 Distribution fees and unused minimum fees 127,162 119,431 108,108 Total commissions $ 641,183 $ 621,008 $ 634,445 |
Summary of Information Services Revenue by Timing of Recognition | The following table presents information services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Information services revenue by timing of recognition Services transferred over time $ 38,452 $ 37,341 $ 32,425 Services transferred at a point in time 862 834 1,916 Total information services revenues $ 39,314 $ 38,175 $ 34,341 |
Summary of Post-Trade Services Revenue by Timing of Recognition | The following table presents post-trade services revenue by timing of recognition: Year Ended December 31, 2022 2021 2020 (In thousands) Post-trade services revenue by timing of recognition Services transferred over time $ 36,835 $ 38,850 $ 19,158 Services transferred at a point in time 42 72 302 Total post-trade services revenues $ 36,877 $ 38,922 $ 19,460 |
Summary of Revenue Recognized from Contract Liabilities and Remaining Balance | The revenue recognized from contract liabilities and the remaining balance is shown below: December 31, 2021 Payments received in advance of services to be performed Revenue recognized for services performed during the period Foreign Currency Translation December 31, 2022 (In thousands) Information services $ 3,528 $ 10,821 $ ( 11,228 ) $ — $ 3,121 Post-trade services 720 16,099 ( 15,876 ) ( 74 ) 869 Total deferred revenue $ 4,248 $ 26,920 $ ( 27,104 ) $ ( 74 ) $ 3,990 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Valuation of Company's Assets and Liabilities Measured at Fair Value | The following table summarizes the valuation of the Company’s assets and liabilities measured at fair value as categorized based on the hierarchy described in Note 2: Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2022 Assets Money market funds $ 59,173 $ — $ — $ 59,173 Trading securities U.S. Treasuries — 74,409 — 74,409 Mutual funds held in rabbi trust — 9,383 — 9,383 Total assets $ 59,173 $ 83,792 $ — $ 142,965 Liabilities Contingent consideration payable $ — $ — $ 12,340 $ 12,340 Foreign currency forward position — 1,688 — 1,688 Total liabilities $ — $ 1,688 $ 12,340 $ 14,028 As of December 31, 2021 Assets Money market funds $ 14,206 $ — $ — $ 14,206 Trading securities U.S. Treasuries — 24,883 — 24,883 Mutual funds held in rabbi trust — 11,195 — 11,195 Total assets $ 14,206 $ 36,078 $ — $ 50,284 Liabilities Contingent consideration payable $ — $ — $ 41,090 $ 41,090 |
Summary of the Change in the Company's Contingent Consideration Payable | The following table summarizes the change in the Company's Level 3 liabilities for the year ended December 31, 2022: December 31, 2021 Payments Unrealized (Gain)/Loss Realized (Gain)/Loss Foreign Currency Translation December 31, 2022 (In thousands) Contingent consideration payable $ 41,090 $ ( 26,164 ) $ 532 $ ( 1,769 ) $ ( 1,349 ) $ 12,340 The table below presents the range and average significant unobservable inputs used in the valuation of the Company's Level 3 liabilities: Valuation Technique Unobservable Inputs Range Average ($ in thousands) As of December 31, 2022 Contingent consideration payable Discounted cash flows Present value factor 0.99 0.99 April 2022-March 2023 variable fee $ 3,556 - $ 5,658 $ 4,607 Percentage of electronic trading volume 86.0 % - 96.6 % 91.3 % As of December 31, 2021 Contingent consideration payable Discounted cash flows Present value factor 0.95 - 1 0.98 Customer retention rate 84.0 % 84.0 % April 2021-March 2022 variable fee $ 2,703 - $ 3,086 $ 2,895 Percentage of electronic trading volume 86.0 % - 96.6 % 91.3 % |
Carrying Value of Financial Asset and Liability Not Measured at Fair Value | The table below presents the carrying value, fair value and fair value hierarchy category of the Company’s financial assets and liabilities that are not measured at fair value on the Consolidated Statements of Financial Condition. The carrying values of the Company’s financial assets and liabilities not measured at fair value categorized in the fair value hierarchy as Level 1 and Level 2 approximate fair value due to the short-term nature of the underlying assets and liabilities Carrying Value Fair Value Level 1 Level 2 Level 3 Total (In thousands) As of December 31, 2022 Financial assets not measured at fair value: Cash and cash equivalents $ 371,573 $ 371,573 $ 371,573 $ — $ — $ 371,573 Cash segregated under federal regulations 50,947 50,947 50,947 — — 50,947 Accounts receivable, net of allowance 78,450 78,450 — 78,450 — 78,450 Receivables from broker-dealers, clearing organizations and customers 476,335 476,335 88,923 387,412 — 476,335 Total $ 977,305 $ 977,305 $ 511,443 $ 465,862 $ — $ 977,305 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 303,993 $ 303,993 $ — $ 303,993 $ — $ 303,993 As of December 31, 2021 Financial assets not measured at fair value: Cash and cash equivalents $ 506,735 $ 506,735 $ 506,735 $ — $ — $ 506,735 Cash segregated under federal regulations 50,159 50,159 50,159 — — 50,159 Accounts receivable, net of allowance 63,881 63,881 — 63,881 — 63,881 Receivables from broker-dealers, clearing organizations and customers 408,346 408,346 68,565 339,781 — 408,346 Total $ 1,029,121 $ 1,029,121 $ 625,459 $ 403,662 $ — $ 1,029,121 Financial liabilities not measured at fair value: Payables to broker-dealers, clearing organizations and customers $ 229,325 $ 229,325 $ — $ 229,325 $ — $ 229,325 |
Summary of Foreign Currency Forward Contracts | The following table summarizes the Company’s foreign currency forward position : As of December 31, 2022 2021 (In thousands) Notional value $ 62,160 $ — Fair value of notional 60,472 — Fair value of the liability $ 1,688 $ — |
Summary of Company's Investments | The following table summarizes the Company’s investments: Amortized Gross Gross Fair (In thousands) As of December 31, 2022 Trading securities U.S. Treasuries $ 74,943 $ — $ ( 534 ) $ 74,409 Mutual funds held in rabbi trust 11,474 — ( 2,091 ) 9,383 Total investments $ 86,417 $ — $ ( 2,625 ) $ 83,792 As of December 31, 2021 Trading securities U.S. Treasuries $ 24,994 $ — $ ( 111 ) $ 24,883 Mutual funds held in rabbi trust 9,941 1,254 — 11,195 Total investments $ 34,935 $ 1,254 $ ( 111 ) $ 36,078 |
Summary of Fair Value of Investments Based upon Contractual Maturities | The following table summarizes the fair value of the investments based upon the contractual maturities: As of December 31, 2022 2021 (In thousands) Less than one year $ 34,001 $ 11,195 Due in 1 - 5 years 49,791 24,883 Total $ 83,792 $ 36,078 |
Receivables from and Payables_2
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Due to and from Broker-Dealers and Clearing Organizations [Abstract] | |
Schedule of Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers | Receivables from and payables to broker-dealers, clearing organizations and customers consisted of the following: As of December 31, 2022 2021 Receivables from broker-dealers, clearing organizations and customers: (In thousands) Securities failed-to-deliver - broker-dealers and clearing organizations $ 144,523 $ 152,766 Securities failed-to-deliver - customers 235,056 182,052 Deposits with clearing organizations and broker-dealers 88,923 68,565 Other 7,833 4,963 Total $ 476,335 $ 408,346 Payables to broker-dealers, clearing organizations and customers: Securities failed-to-receive - broker-dealers and clearing organizations $ 224,816 $ 166,010 Securities failed-to-receive - customers 71,828 59,879 Other 7,349 3,436 Total $ 303,993 $ 229,325 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Company's Intangible Assets | December 31, 2022 December 31, 2021 Cost Accumulated Net carrying Cost Accumulated Net carrying (In thousands) Customer relationships $ 129,991 $ ( 34,310 ) $ 95,681 $ 132,197 $ ( 19,813 ) $ 112,384 Technology and other intangibles 11,430 ( 9,046 ) 2,384 11,430 ( 7,437 ) 3,993 Total $ 141,421 $ ( 43,356 ) $ 98,065 $ 143,627 $ ( 27,250 ) $ 116,377 |
Capitalized Software, Furnitu_2
Capitalized Software, Furniture, Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Capitalized Software Development Costs, Furniture, Equipment and Leasehold Improvements, Net of Accumulated Depreciation and Amortization | Capitalized software development costs, furniture, equipment and leasehold improvements, net of accumulated depreciation and amortization, are comprised of the following: As of December 31, 2022 2021 (In thousands) Software development costs $ 218,848 $ 183,998 Computer hardware and related software 37,614 45,986 Office hardware 8,455 8,866 Furniture and fixtures 6,952 7,120 Leasehold improvements 30,660 31,021 302,529 276,991 Accumulated depreciation and amortization ( 202,273 ) ( 180,930 ) Total $ 100,256 $ 96,061 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2022 2021 2020 (In thousands) Current: Federal $ 52,865 $ 36,661 $ 30,215 State and local 20,716 17,238 19,130 Foreign 21,030 19,018 15,538 Total current provision 94,611 72,917 64,883 Deferred: Federal ( 5,830 ) 2,249 7,474 State and local ( 1,350 ) 778 1,439 Foreign 633 91 1,186 Total deferred provision ( 6,547 ) 3,118 10,099 Provision for income taxes $ 88,064 $ 76,035 $ 74,982 |
Difference between the U.S. federal statutory tax rate and the Company's effective tax rate | The difference between the U.S. federal statutory tax rate of 21 % and the Company's effective tax rate is as follows: Year Ended December 31, 2022 2021 2020 U.S. federal statutory tax rate 21.0 % 21.0 % 21.0 % State and local taxes - net of federal benefit 4.6 4.4 4.4 Credits and deductions related to research activities ( 0.4 ) ( 0.4 ) ( 0.3 ) Foreign rate differential benefit ( 0.1 ) ( 0.2 ) ( 0.4 ) Excess tax benefit from stock-based compensation ( 0.1 ) ( 2.9 ) ( 5.4 ) Other, net 1.0 0.9 0.7 Effective tax rate 26.0 % 22.8 % 20.0 % |
Summary of Company's Net Deferred Tax Assets | The following is a summary of the Company’s net deferred tax assets: As of December 31, 2022 2021 (In thousands) Deferred tax assets: Stock compensation expense $ 3,451 $ 2,683 Operating lease liabilities 17,842 18,688 Deferred Compensation 2,425 2,876 Other 1,774 128 Total deferred tax assets 25,492 24,375 Valuation allowance — — Net deferred tax assets 25,492 24,375 Deferred tax liabilities: Depreciation ( 9,956 ) ( 9,847 ) Capitalized software development costs ( 3,923 ) ( 9,417 ) Goodwill and intangible assets ( 4,829 ) ( 4,311 ) Operating lease right-of-use assets ( 14,176 ) ( 14,940 ) Deferred tax (liability) asset, net $ ( 7,392 ) $ ( 14,140 ) |
Reconciliation of the Unrecognized Tax Benefits | A reconciliation of the unrecognized tax benefits is as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Balance at beginning of year $ 15,089 $ 16,317 $ 6,831 Increases based on tax positions related to the current period — — — Increases based on tax positions related to prior periods 160 — 9,486 (Decreases) based on tax positions related to prior periods — ( 1,228 ) — (Decreases) related to cash settlements with taxing authorities ( 5,414 ) — — Balance at end of year $ 9,835 $ 15,089 $ 16,317 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Summary of the Change in the Company's Outstanding Shares of Common Stock | The following is a summary of the changes in the Company’s outstanding shares of voting common stock: Year Ended December 31, 2022 2021 2020 (In thousands) Outstanding shares of voting common stock at the beginning of year 37,919 38,005 37,936 Exercise of stock options 29 92 177 Issuance of restricted stock, net of cancellations 66 48 56 Shares withheld for withholding tax payments ( 86 ) ( 75 ) ( 125 ) Repurchases ( 280 ) ( 151 ) ( 39 ) Outstanding shares of voting common stock at the end of year 37,648 37,919 38,005 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense | Total stock-based compensation expense was as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Employees: Restricted stock and performance shares $ 24,593 $ 23,041 $ 21,310 Stock options 3,583 2,961 3,100 28,176 26,002 24,410 Non-employee directors: Restricted stock 1,688 1,312 1,203 Total stock-based compensation $ 29,864 $ 27,314 $ 25,613 |
Assumptions Used for the Black-Scholes Option-Pricing Model to Determine the Per Share Weighted Average Fair Value for Options Granted | The following table represents the assumptions used for the Black-Scholes option-pricing model to determine the per share weighted-average fair value for options granted, excluding the two awards based on the Monte Carlo model discussed below: Year Ended December 31, 2022 2021 2020 Expected life (years) 5.0 5.0 5.0 Risk-free interest rate 1.5 % 0.4 % 1.6 % Expected volatility 32.6 % 31.2 % 26.8 % Expected dividend yield 0.7 % 0.4 % 0.6 % |
Stock Option Activity | The following table reports stock option activity during the three years ended December 31, 2022 and the intrinsic value as of December 31, 2022: Number of Shares Weighted-Average Exercise Price ($) Remaining Contractual Intrinsic Value ($) (In thousands) Outstanding at December 31, 2019 550,591 175.16 Granted 13,900 368.10 Canceled ( 218 ) 307.52 Exercised ( 176,901 ) 84.07 Outstanding at December 31, 2020 387,372 223.60 Granted 17,897 517.88 Canceled ( 616 ) 394.77 Exercised ( 91,900 ) 107.05 Outstanding at December 31, 2021 312,753 274.35 Granted 23,904 352.15 Canceled ( 1,646 ) 421.08 Exercised ( 28,758 ) 157.08 3,597 Outstanding at December 31, 2022 306,253 290.65 1.9 3,971 Exercisable at December 31, 2022 42,119 276.35 1.9 2,259 |
Schedule of Estimate, Target and Maximum Performance Share Payouts | The following table reports the Company's performance payout estimates for three-year performance period awards at December 31, 2022 as well as the target and maximum share payouts for each award date granted: Award Date 2022 Estimate Target Maximum January 15, 2020 11,915 12,298 18,447 January 15, 2021 8,776 12,185 24,370 August 1, 2021 969 1,070 2,140 January 31, 2022 15,701 18,155 36,310 March 1, 2022 3,447 3,986 7,972 |
Restricted Stock and Performance Share Activity | The following table reports restricted stock and performance share activity during the three years ended December 31, 2022: Number of Restricted Shares Weighted-Average Grant Date Fair Value Outstanding at December 31, 2019 346,032 $ 154.27 Granted 38,907 Performance share pay-out 19,401 Canceled ( 3,480 ) Vested ( 170,213 ) Outstanding at December 31, 2020 230,647 $ 224.63 Granted 47,142 Performance share pay-out — Canceled ( 3,911 ) Vested ( 111,268 ) Outstanding at December 31, 2021 162,610 $ 316.56 Granted 72,861 Performance share pay-out — Canceled ( 8,513 ) Vested ( 64,602 ) Outstanding at December 31, 2022 162,356 $ 321.04 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Weighted Average Shares Outstanding Used to Compute Earnings Per Share | The following table sets forth basic and diluted weighted average shares outstanding used to compute earnings per share: Year Ended December 31, 2022 2021 2020 (In thousands, except per share amounts) Basic weighted average shares outstanding 37,468 37,508 37,359 Dilutive effect of stock options and restricted stock 175 589 785 Diluted weighted average shares outstanding 37,643 38,097 38,144 Basic earnings per share $ 6.68 $ 6.88 $ 8.01 Diluted earnings per share $ 6.65 $ 6.77 $ 7.85 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The following table presents the components of lease expense for the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, Lease cost: Classification 2022 2021 2020 (In thousands) Operating lease cost Occupancy $ 13,015 $ 13,202 $ 13,455 Operating lease cost for subleased/assigned properties Other, net 469 2,054 2,404 Variable lease costs Occupancy 96 13 26 Sublease income for subleased/assigned properties Other, net ( 405 ) ( 2,079 ) ( 2,420 ) Net lease cost $ 13,175 $ 13,190 $ 13,465 |
Summary of Weighted Average Remaining Lease Term and Discount Rate | The weighted average remaining lease term and weighted average discount rate are as follows: As of December 31, Lease Term and Discount Rate 2022 2021 Weighted average remaining lease term (in years) 10.6 11.5 Weighted average discount rate 5.9 % 5.9 % |
Schedule of Maturity of Lease Liabilities | The following table presents the maturity of lease liabilities as of December 31, 2022: (In thousands) 2023 $ 11,001 2024 11,481 2025 11,289 2026 10,790 2027 8,464 2028 and thereafter 59,630 Total lease payments 112,655 Less: imputed interest 29,979 Present value of lease liabilities $ 82,676 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenue and Long-lived Assets | Revenues for the three years ended December 31, 2022, 2021 and 2020 and long-lived assets as of December 31, 2022 and 2021 were as follows: Year Ended December 31, 2022 2021 2020 (In thousands) Revenues Americas $ 581,935 $ 568,918 $ 583,164 Europe 119,112 110,068 89,751 Asia 17,253 19,965 16,210 Total $ 718,300 $ 698,951 $ 689,125 As of December 31, 2022 2021 (In thousands) Long-lived assets, as defined Americas $ 82,008 $ 75,328 Europe 17,723 20,547 Asia 525 186 Total $ 100,256 $ 96,061 |
Cash and Cash Equivalents and_2
Cash and Cash Equivalents and Restricted Cash (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Summary of Reconciliation of Cash and Cash Equivalents with Restricted or Segregated Cash | The following table provides a reconciliation of cash and cash equivalents together with restricted or segregated cash as reported within the Consolidated Statements of Financial Condition to the sum of the same such amounts shown in the Consolidated Statements of Cash Flows: As of December 31, Statement of Financial Condition Location 2022 2021 2020 (In thousands) Cash and cash equivalents Cash and cash equivalents $ 430,746 $ 506,735 $ 460,858 Cash segregated for regulatory purposes Cash segregated under federal regulations 50,947 50,159 50,059 Deposits with clearing organizations and broker-dealers Receivables from broker-dealers, clearing organizations and customers 88,923 68,565 97,043 Other deposits Prepaid expenses and other assets 2,048 108 90 Total $ 572,664 $ 625,567 $ 608,050 |
Parent Company Information (Tab
Parent Company Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Financial Condition As of December 31, 2022 December 31, 2021 (In thousands) ASSETS Cash and cash equivalents $ 43,909 $ 61,820 Investments, at fair value 5,343 6,327 Accounts receivable 769 — Receivable from subsidiaries 8,962 3,488 Intangible assets, net of accumulated amortization 23 25 Furniture, equipment, leasehold improvements and capitalized 19,557 21,596 Operating lease right-of-use assets 57,402 60,753 Investments in subsidiaries 985,222 982,029 Prepaid expenses and other assets 41,511 4,810 Income and other tax receivable 11,474 1,763 Total assets $ 1,174,172 $ 1,142,611 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Accrued employee compensation $ 9,693 $ 11,065 Income and other tax liabilities 12 5,026 Accounts payable, accrued expenses and other liabilities 11,087 9,233 Operating lease liabilities 72,287 75,978 Total liabilities 93,079 101,302 Stockholders' equity Preferred stock — — Series A Preferred Stock — — Common stock voting 123 123 Common stock non-voting — — Additional paid-in capital 345,468 330,262 Treasury stock ( 328,326 ) ( 232,712 ) Retained earnings 1,101,525 956,966 Accumulated other comprehensive loss ( 37,697 ) ( 13,330 ) Total stockholders' equity 1,081,093 1,041,309 Total liabilities and stockholders' equity $ 1,174,172 $ 1,142,611 |
Condensed Statements of Operations and Comprehensive Income | MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Operations and Comprehensive Income Year Ended December 31, 2022 2021 2020 (In thousands) Dividends from subsidiaries $ 257,200 $ 173,000 $ 30,000 Expenses Employee compensation and benefits 17,655 17,887 19,710 Depreciation and amortization 2,136 2,123 2,068 Professional and consulting fees 5,528 7,081 7,332 General and administrative 3,081 3,620 2,723 Total expenses 28,400 30,711 31,833 Operating income (loss) 228,800 142,289 ( 1,833 ) Other income (expense) Interest income 272 132 2,799 Interest expense ( 271 ) — ( 805 ) Equity in earnings of unconsolidated affiliate 1,126 — — Other, net ( 2,633 ) ( 2,950 ) ( 318 ) Total other income (expense) ( 1,506 ) ( 2,818 ) 1,676 Income (loss) before income taxes and equity in undistributed earnings of subsidiaries 227,294 139,471 ( 157 ) Benefit from income taxes ( 7,710 ) ( 6,472 ) ( 23,444 ) Income before equity in undistributed income of subsidiaries 235,004 145,943 23,287 Equity in undistributed income of subsidiaries 15,220 111,945 276,090 Net income 250,224 257,888 299,377 Other comprehensive income (loss), net ( 24,367 ) ( 8,680 ) 5,620 Comprehensive income $ 225,857 $ 249,208 $ 304,997 |
Condensed Statements of Cash Flows | MarketAxess Holdings Inc. (Parent Company Only) Condensed Statements of Cash Flows Year Ended December 31, 2022 2021 2020 (In thousands) Cash flows from operating activities Net income $ 250,224 $ 257,888 $ 299,377 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 2,136 2,123 2,068 Amortization of operating lease right-of-use assets 3,347 4,484 4,117 Stock-based compensation expense 12,554 12,706 10,834 Deferred taxes ( 5,076 ) 1,712 3,644 Equity in undistributed income of subsidiaries ( 15,220 ) ( 111,945 ) ( 276,090 ) Other 441 — ( 671 ) Changes in operating assets and liabilities: (Increase) decrease in accounts receivable ( 769 ) 178 ( 115 ) Decrease (increase) in receivable from subsidiaries 7,931 47,371 ( 25,049 ) (Increase) in prepaid expenses and other assets ( 1,175 ) ( 219 ) ( 1,085 ) Decrease (increase) in mutual funds held in rabbi trust 984 ( 1,516 ) ( 1,328 ) (Increase) decrease in income and other tax receivables ( 9,711 ) 7,265 ( 1,240 ) (Decrease) increase in accrued employee compensation ( 1,372 ) 824 3,698 Increase (decrease) in income and other tax liabilities 62 ( 143 ) 6,676 Increase (decrease) in accounts payable, accrued expenses and other liabilities 443 ( 607 ) ( 442 ) (Decrease) in operating lease liabilities ( 3,689 ) ( 4,673 ) ( 4,055 ) Net cash provided by operating activities 241,110 215,449 20,339 Cash flows from investing activities Acquisition of business, net of cash and cash equivalents acquired — ( 17,079 ) — Acquisition of equity method investment ( 34,400 ) — — Investments in subsidiaries ( 8,326 ) — — Available-for-sale investments Proceeds from maturities and sales — — 170,657 Purchases — — ( 32,865 ) Purchases of furniture, equipment and leasehold improvements ( 96 ) ( 198 ) ( 337 ) Net cash (used in) provided by investing activities ( 42,822 ) ( 17,277 ) 137,455 Cash flows from financing activities Cash dividend on common stock ( 105,942 ) ( 99,791 ) ( 90,566 ) Exercise of stock options 672 7,096 4,007 Withholding tax payments on restricted stock vesting and stock option exercises ( 23,404 ) ( 33,890 ) ( 42,418 ) Repurchases of common stock ( 87,540 ) ( 63,189 ) ( 16,135 ) Proceeds from short-term borrowings 100,000 — 348,000 Repayments of short-term borrowings ( 100,000 ) — ( 348,000 ) Net cash (used in) financing activities ( 216,214 ) ( 189,774 ) ( 145,112 ) Effect of exchange rate changes on investments 15 ( 2,324 ) ( 5,176 ) Cash and cash equivalents including restricted cash Net increase (decrease) for the period ( 17,911 ) 6,073 7,506 Beginning of period 61,820 55,747 48,241 End of period $ 43,909 $ 61,820 $ 55,747 Supplemental cash flow information: Cash paid for income taxes $ 65,764 $ 41,103 $ 32,674 Cash paid for interest 271 — 805 Non-cash investing and financing activity: Exercise of stock options - cashless 3,845 2,750 10,866 |
Organization and Principal Bu_2
Organization and Principal Business Activity - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Line Items] | |
Date of incorporation | Apr. 11, 2000 |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Revenue | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Significant Accounting Policies [Line Items] | |||
Allowance for credit losses | $ 590 | $ 140 | |
Provision for bad debts | 600 | 200 | $ 500 |
Write-offs and other charges against the allowance for credit losses | $ 100 | $ 100 | $ 100 |
Number of revenue streams | Revenue | 4 | ||
Settlement days of bond transaction | within one to two trading days | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Contractual maturities accounts receivable | 1 year | ||
Estimated useful life of fixed assets | 7 years | ||
Hosting service contract, amortization period | 5 years | ||
Maximum [Member] | Business Combinations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated life of intangible assets | 15 years | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful life of fixed assets | 3 years | ||
Hosting service contract, amortization period | 1 year | ||
Minimum [Member] | Business Combinations [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated life of intangible assets | 1 year | ||
Minimum [Member] | Internally Developed Software [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated life of intangible assets | 3 years | ||
ASU 2018-15 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Retrospective Application Impracticable [true false] | false | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
ASU 2017-04 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Retrospective Application Impracticable [true false] | false | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||
ASU 2016-13 [Member] | |||
Significant Accounting Policies [Line Items] | |||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | ||
Change in Accounting Principle, Accounting Standards Update, Retrospective Application Impracticable [true false] | false | ||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true |
Significant Accounting Polici_5
Significant Accounting Policies - Summary of Commission Revenue by Fee Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commission revenue by fee type | |||
Revenues | $ 718,300 | $ 698,951 | $ 689,125 |
Commissions [Member] | |||
Commission revenue by fee type | |||
Disclosed trading | 321,603 | 333,712 | 343,427 |
Matched principal trading | 175,440 | 155,465 | 170,537 |
Total variable transaction fees | 514,021 | 501,577 | 526,337 |
Distribution fees and unused minimum fees | 127,162 | 119,431 | 108,108 |
Revenues | 641,183 | 621,008 | 634,445 |
Commissions [Member] | US Government Bonds [Member] | |||
Commission revenue by fee type | |||
Matched principal trading | $ 16,978 | $ 12,400 | $ 12,372 |
Significant Accounting Polici_6
Significant Accounting Policies - Summary of Information Services Revenue by Timing of Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Revenues | $ 718,300 | $ 698,951 | $ 689,125 |
Information Services [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | 39,314 | 38,175 | 34,341 |
Information Services [Member] | Transferred over Time [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | 38,452 | 37,341 | 32,425 |
Information Services [Member] | Transferred at a Point in Time [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | $ 862 | $ 834 | $ 1,916 |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Post-Trade Services Revenue by Timing of Recognition (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Significant Accounting Policies [Line Items] | |||
Revenues | $ 718,300 | $ 698,951 | $ 689,125 |
Post-trade Services [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | 36,877 | 38,922 | 19,460 |
Post-trade Services [Member] | Transferred over Time [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | 36,835 | 38,850 | 19,158 |
Post-trade Services [Member] | Transferred at a Point in Time [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenues | $ 42 | $ 72 | $ 302 |
Significant Accounting Polici_8
Significant Accounting Policies - Summary of Revenue Recognized from Contract Liabilities and Remaining Balance (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | $ 4,248 |
Payments received in advance of services to be performed | 26,920 |
Revenue recognized for services performed during the period | (27,104) |
Foreign Currency Translation | (74) |
Deferred revenues, ending balance | 3,990 |
Information Services [Member] | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | 3,528 |
Payments received in advance of services to be performed | 10,821 |
Revenue recognized for services performed during the period | (11,228) |
Deferred revenues, ending balance | 3,121 |
Post-trade Services [Member] | |
Significant Accounting Policies [Line Items] | |
Deferred revenues, beginning balance | 720 |
Payments received in advance of services to be performed | 16,099 |
Revenue recognized for services performed during the period | (15,876) |
Foreign Currency Translation | (74) |
Deferred revenues, ending balance | $ 869 |
Significant Accounting Polici_9
Significant Accounting Policies - Additional Information (Detail 1) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 $ in Millions | Dec. 31, 2022 USD ($) |
Significant Accounting Policies [Line Items] | |
Aggregate amount of transaction price allocated to remaining performance obligations | $ 51.7 |
Expected time to recognize revenue for remaining performance obligation | 55 months |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements - Additional Information (Detail) $ in Millions | Dec. 31, 2022 USD ($) |
Brokers And Dealers [Line Items] | |
Securities reserve deposit | $ 50.9 |
U.S. Subsidiaries | |
Brokers And Dealers [Line Items] | |
Aggregate net capital and financial resources in excess of required level | 518.2 |
Aggregate net capital and financial resources, minimum capital requirement | 27.1 |
U.S. Broker-Dealer Subsidiaries | |
Brokers And Dealers [Line Items] | |
Aggregate net capital and financial resources in excess of required level | 314.1 |
Aggregate net capital and financial resources, minimum capital requirement | $ 3.7 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Company's Assets and Liabilities Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Money market funds | $ 59,173 | $ 14,206 |
Assets Fair Value Total | 142,965 | 50,284 |
Liabilities | ||
Contingent consideration payable | 12,340 | 41,090 |
Total liabilities | 14,028 | |
Mutual Funds Held In Rabbi Trust [Member] | ||
Assets | ||
Trading securities, Fair value | 9,383 | 11,195 |
Foreign Currency Forward Position [Member] | ||
Liabilities | ||
Foreign currency forward position | 1,688 | |
U.S. Treasuries [Member] | ||
Assets | ||
Trading securities, Fair value | 74,409 | 24,883 |
Level 1 [Member] | ||
Assets | ||
Money market funds | 59,173 | 14,206 |
Assets Fair Value Total | 59,173 | 14,206 |
Level 2 [Member] | ||
Assets | ||
Assets Fair Value Total | 83,792 | 36,078 |
Liabilities | ||
Total liabilities | 1,688 | |
Level 2 [Member] | Mutual Funds Held In Rabbi Trust [Member] | ||
Assets | ||
Trading securities, Fair value | 9,383 | 11,195 |
Level 2 [Member] | Foreign Currency Forward Position [Member] | ||
Liabilities | ||
Foreign currency forward position | 1,688 | |
Level 2 [Member] | U.S. Treasuries [Member] | ||
Assets | ||
Trading securities, Fair value | 74,409 | 24,883 |
Level 3 [Member] | ||
Liabilities | ||
Contingent consideration payable | 12,340 | $ 41,090 |
Total liabilities | $ 12,340 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Transfers between Level 1, Level 2 and Level 3 securities | $ 0 | $ 0 | |
Proceeds from the sales and maturities of securities available-for-sale | 0 | 19,400,000 | $ 261,600,000 |
Net unrealized (losses) gains on trading securities | (2,600,000) | (300,000) | (400,000) |
Realized gain | 800,000 | $ 100,000 | $ 1,700,000 |
Unrealized loss | 1,700,000 | ||
Collateral deposit with bank | 1,900,000 | ||
Net realized gains or loss | $ 0 | ||
Minimum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Business combination, contingent consideration payment period | 18 months | ||
Maximum [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Business combination, contingent consideration payment period | 24 months |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of the Change in the Company's Contingent Consideration Payable (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Contingent consideration payable | $ 12,340 | $ 41,090 |
Payments | (26,164) | |
Unrealized (Gain)/Loss | 532 | |
Realized (Gain)/Loss | (1,769) | |
Foreign Currency Translation | $ (1,349) |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Significant Unobservable Inputs Used in the Valuation of Company's Liabilities (Details) - Discounted Cash Flow [Member] $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) Rate |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Present value factor | 0.99 | |
Customer retention rate | Rate | 84% | |
Average present value factor | 0.99 | 0.98 |
Average customer retention rate | Rate | 84% | |
Average April 2022-March 2023 variable fee | $ 4,607 | |
Average April 2021-March 2022 variable fee | $ 2,895 | |
Average percentage of electronic trading volume | 0.913 | 0.913 |
Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Present value factor | 0.01 | |
April 2022-March 2023 variable fee | $ 5,658 | |
April 2021-March 2022 variable fee | $ 3,086 | |
Percentage of electronic trading volume | 96.60% | 96.60% |
Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Present value factor | Rate | 0.95% | |
April 2022-March 2023 variable fee | $ 3,556 | |
April 2021-March 2022 variable fee | $ 2,703 | |
Percentage of electronic trading volume | 86% | 86% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value of Financial Asset and Liability Not Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | $ 142,965 | $ 50,284 |
Level 1 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 59,173 | 14,206 |
Level 2 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 83,792 | 36,078 |
Financial Assets and Liabilities not Measured [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 977,305 | 1,029,121 |
Financial Assets and Liabilities not Measured [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 303,993 | 229,325 |
Financial Assets and Liabilities not Measured [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 371,573 | 506,735 |
Financial Assets and Liabilities not Measured [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,947 | 50,159 |
Financial Assets and Liabilities not Measured [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 78,450 | 63,881 |
Financial Assets and Liabilities not Measured [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 476,335 | 408,346 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 511,443 | 625,459 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 371,573 | 506,735 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,947 | 50,159 |
Financial Assets and Liabilities not Measured [Member] | Level 1 [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 88,923 | 68,565 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 465,862 | 403,662 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 303,993 | 229,325 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 78,450 | 63,881 |
Financial Assets and Liabilities not Measured [Member] | Level 2 [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 387,412 | 339,781 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 977,305 | 1,029,121 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 303,993 | 229,325 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 371,573 | 506,735 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,947 | 50,159 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 78,450 | 63,881 |
Financial Assets and Liabilities not Measured [Member] | Carrying Value [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 476,335 | 408,346 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 977,305 | 1,029,121 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Payables to Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial liabilities not measured at fair value: | ||
Financial liabilities not measured at fair value | 303,993 | 229,325 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Cash and Cash Equivalents [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 371,573 | 506,735 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Cash Segregated under Federal Regulations [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 50,947 | 50,159 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Accounts Receivable, Net of Allowance [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | 78,450 | 63,881 |
Financial Assets and Liabilities not Measured [Member] | Fair Value [Member] | Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | ||
Financial assets not measured at fair value: | ||
Financial assets not measured at fair value | $ 476,335 | $ 408,346 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Foreign Currency Forward Contracts (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives Fair Value [Line Items] | ||
Notional value | $ 62,160 | $ 0 |
Fair value of notional | 60,472 | 0 |
Fair value of the liability | $ 1,688 | $ 0 |
Fair Value Measurements - Sum_4
Fair Value Measurements - Summary of Company's Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investments, Amortized cost | $ 86,417 | $ 34,935 |
Investments, Gross unrealized gains | 1,254 | |
Investments, Gross unrealized losses | (2,625) | (111) |
Investments, at fair value | 83,792 | 36,078 |
U.S. Treasuries [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 74,943 | 24,994 |
Trading securities, Gross unrealized losses | (534) | (111) |
Trading securities, Fair value | 74,409 | 24,883 |
Mutual Funds Held In Rabbi Trust [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Trading securities, Amortized cost | 11,474 | 9,941 |
Trading securities, Gross unrealized gains | 1,254 | |
Trading securities, Gross unrealized losses | (2,091) | |
Trading securities, Fair value | $ 9,383 | $ 11,195 |
Fair Value Measurements - Sum_5
Fair Value Measurements - Summary of Fair Value of Investments Based upon Contractual Maturities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Less than one year | $ 34,001 | $ 11,195 |
Due in 1 - 5 years | 49,791 | 24,883 |
Total | $ 83,792 | $ 36,078 |
Receivables from and Payables_3
Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers - Schedule of Receivables from and Payables to Broker-dealers, Clearing Organizations and Customers (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables from broker-dealers, clearing organizations and customers: | ||
Securities failed-to-deliver - broker-dealers and clearing organizations | $ 144,523 | $ 152,766 |
Securities failed-to-deliver - customers | 235,056 | 182,052 |
Deposits with clearing organizations and broker-dealers | 88,923 | 68,565 |
Other | 7,833 | 4,963 |
Total | 476,335 | 408,346 |
Payables to broker-dealers, clearing organizations and customers: | ||
Securities failed-to-receive - broker-dealers and clearing organizations | 224,816 | 166,010 |
Securities failed-to-receive - customers | 71,828 | 59,879 |
Other | 7,349 | 3,436 |
Total | $ 303,993 | $ 229,325 |
Acquisitions and Equity Inves_2
Acquisitions and Equity Investments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Apr. 09, 2021 | Nov. 30, 2020 | Dec. 31, 2022 | May 01, 2022 | Apr. 01, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||||||
Contingent consideration payable | $ 1,600 | |||||
Goodwill | 154,789 | $ 154,789 | ||||
Contingent consideration paid | 12,340 | $ 41,090 | ||||
RFQ Hub Holdings LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Recorded investments | $ 34,400 | |||||
Proportionate share in net earnings | 1,100 | |||||
RFQ Hub Holdings LLC [Member] | Prepaid Expenses And Other Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Recorded investments | 35,500 | |||||
Muni Brokers L L C [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 17,100 | |||||
Contingent consideration payable | $ 12,300 | |||||
Amortizable intangible assets | 32,000 | |||||
Goodwill | $ 7,400 | |||||
Business combination, contingent consideration payment period | 2 years | |||||
Contingent consideration paid | $ 8,300 | |||||
Muni Brokers L L C [Member] | Accounts Payable, Accrued Expenses and Other Liabilities [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 17,100 | |||||
Contingent consideration payable | 22,500 | |||||
Business Combination, Consideration Transferred | 39,600 | |||||
Regulatory Services GmbH of Deutsche Borse Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Cash consideration | $ 22,500 | |||||
Amortizable intangible assets | $ 37,400 | |||||
Business combination, contingent consideration payment period | 18 months | |||||
Contingent consideration paid | $ 17,900 | |||||
Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration payment period | 24 months | |||||
Maximum [Member] | Muni Brokers L L C [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payable | $ 25,000 | |||||
Maximum [Member] | Muni Brokers L L C [Member] | Customer Relationships and Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 15 years | |||||
Maximum [Member] | Regulatory Services GmbH of Deutsche Borse Group [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration payable | $ 24,600 | |||||
Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, contingent consideration payment period | 18 months | |||||
Minimum [Member] | Muni Brokers L L C [Member] | Customer Relationships and Technology [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 1 year |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | |||
Goodwill | $ 154,789 | $ 154,789 | |
Amortization expense associated with identifiable intangible assets | 16,400 | 13,400 | $ 3,900 |
Estimated total amortization expense 2023 | 17,300 | ||
Estimated total amortization expense 2024 | 14,900 | ||
Estimated total amortization expense 2025 | 12,000 | ||
Estimated total amortization expense 2026 | 10,300 | ||
Estimated total amortization expense 2027 | 9,000 | ||
Indefinite-lived Intangible Assets [Member] | |||
Goodwill [Line Items] | |||
Goodwill and intangible assets with indefinite lives | $ 154,800 | $ 154,800 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Company's Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite Lived Intangible Assets [Line Items] | ||
Cost | $ 141,421 | $ 143,627 |
Accumulated amortization | (43,356) | (27,250) |
Net carrying amount | 98,065 | 116,377 |
Customer Relationships [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 129,991 | 132,197 |
Accumulated amortization | (34,310) | (19,813) |
Net carrying amount | 95,681 | 112,384 |
Technology and Other Intangibles [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Cost | 11,430 | 11,430 |
Accumulated amortization | (9,046) | (7,437) |
Net carrying amount | $ 2,384 | $ 3,993 |
Capitalized Software, Furnitu_3
Capitalized Software, Furniture, Equipment and Leasehold Improvements - Capitalized Software Development Costs, Furniture, Equipment and Leasehold Improvements, Net of Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | $ 302,529 | $ 276,991 |
Accumulated depreciation and amortization | (202,273) | (180,930) |
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 100,256 | 96,061 |
Software Development Costs [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 218,848 | 183,998 |
Computer Hardware and Related Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 37,614 | 45,986 |
Office Hardware [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 8,455 | 8,866 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | 6,952 | 7,120 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Furniture, equipment, leasehold improvements and capitalized software, Gross | $ 30,660 | $ 31,021 |
Capitalized Software, Furnitu_4
Capitalized Software, Furniture, Equipment and Leasehold Improvements - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Software development costs | $ 38.7 | $ 33.1 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 52,865 | $ 36,661 | $ 30,215 |
State and local | 20,716 | 17,238 | 19,130 |
Foreign | 21,030 | 19,018 | 15,538 |
Total current provision | 94,611 | 72,917 | 64,883 |
Deferred: | |||
Federal | (5,830) | 2,249 | 7,474 |
State and local | (1,350) | 778 | 1,439 |
Foreign | 633 | 91 | 1,186 |
Total deferred provision | (6,547) | 3,118 | 10,099 |
Provision for income taxes | $ 88,064 | $ 76,035 | $ 74,982 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule Of Pre Tax Income [Line Items] | ||||
Pre-tax income from U.S. operations | $ 236,400 | $ 234,600 | $ 288,300 | |
U.S. federal statutory tax rate | 21% | 21% | 21% | |
Provision for income taxes | $ 88,064 | $ 76,035 | $ 74,982 | |
Unrecognized tax benefits | 9,835 | 15,089 | 16,317 | $ 6,831 |
Recognized penalties and interest on unrecognized tax benefits | 5,800 | 3,300 | 3,700 | |
Penalties and interest accrued on unrecognized tax benefits | 7,900 | 8,300 | ||
New York State [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Provision for income taxes | $ 3,200 | |||
New York State [Member] | Earliest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2015 | |||
New York State [Member] | Latest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2017 | |||
New York City [Member] | Earliest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2016 | |||
New York City [Member] | Latest Tax Year [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Income tax year under examination | 2018 | |||
Foreign Country [Member] | ||||
Schedule Of Pre Tax Income [Line Items] | ||||
Pre-tax income from foreign operations | $ 101,900 | $ 99,300 | $ 86,100 |
Income Taxes - Difference Betwe
Income Taxes - Difference Between the Company's Reported Provision for Income Taxes and the U.S. Federal Statutory Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21% | 21% | 21% |
State and local taxes - net of federal benefit | 4.60% | 4.40% | 4.40% |
Credits and deductions related to research activities | (0.40%) | (0.40%) | (0.30%) |
Foreign rate differential benefit | (0.10%) | (0.20%) | (0.40%) |
Excess tax benefit from stock-based compensation | (0.10%) | (2.90%) | (5.40%) |
Other, net | 1% | 0.90% | 0.70% |
Effective tax rate | 26% | 22.80% | 20% |
Income Taxes - Summary of Compa
Income Taxes - Summary of Company's Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Stock compensation expense | $ 3,451 | $ 2,683 |
Operating lease liabilities | 17,842 | 18,688 |
Deferred Compensation | 2,425 | 2,876 |
Other | 1,774 | 128 |
Total deferred tax assets | 25,492 | 24,375 |
Net deferred tax assets | 25,492 | 24,375 |
Deferred tax liabilities: | ||
Depreciation | (9,956) | (9,847) |
Capitalized software development costs | (3,923) | (9,417) |
Goodwill and intangible assets | (4,829) | (4,311) |
Operating lease right-of-use assets | (14,176) | (14,940) |
Deferred tax (liability) asset, net | $ (7,392) | $ (14,140) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 15,089 | $ 16,317 | $ 6,831 |
Increases based on tax positions related to prior periods | 160 | 9,486 | |
(Decreases) based on tax positions related to prior periods | (1,228) | ||
(Decreases) related to cash settlements with taxing authorities | (5,414) | ||
Balance at end of year | $ 9,835 | $ 15,089 | $ 16,317 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2021 | Jan. 31, 2019 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 31, 2022 | |
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 | |||||
Common stock entitles | one | ||||||||
Shares repurchase program authorized | $ 150,000,000 | ||||||||
Cash dividends declared per common share | $ 0.70 | $ 0.66 | $ 0.60 | $ 2.80 | $ 2.64 | $ 2.40 | |||
Share Repurchase Program [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Shares repurchase program period | 2 years | ||||||||
Shares repurchase program authorized | $ 100,000,000 | $ 100,000,000 | |||||||
Share repurchase program, commencement date | 2019-04 | ||||||||
Share repurchase program, commencement date | Apr. 30, 2021 | ||||||||
Common Stock Non-Voting [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | 10,000,000 | |||||
Common Stock Voting [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of the Companys Change in the Common Stock (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||
Outstanding shares of voting common stock at the beginning of year | 37,918,956 | ||
Exercise of stock options | 28,758 | 91,900 | 176,901 |
Outstanding shares of voting common stock at the end of year | 37,648,148 | 37,918,956 | |
Voting Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Outstanding shares of voting common stock at the beginning of year | 37,919,000 | 38,005,000 | 37,936,000 |
Exercise of stock options | 29,000 | 92,000 | 177,000 |
Issuance of restricted stock, net of cancellations | 66,000 | 48,000 | 56,000 |
Shares withheld for withholding tax payments | (86,000) | (75,000) | (125,000) |
Repurchases | (280,000) | (151,000) | (39,000) |
Outstanding shares of voting common stock at the end of year | 37,648,000 | 37,919,000 | 38,005,000 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2022 | Mar. 31, 2022 | Aug. 31, 2021 | Jan. 31, 2019 | Nov. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant under the stock incentive plan | 2,476,930 | |||||||
Period vested for option grants | 5 years | |||||||
Weighted-average fair value option granted | $ 101.38 | $ 137.66 | $ 91.43 | |||||
Number of awards excluded from option-pricing model | 2 | |||||||
Grant date fair value | $ 3,597 | |||||||
Fair value assumptions, Dividend yield rate | 0.70% | 0.40% | 0.60% | |||||
Closing price of common stock | $ 278.89 | |||||||
Unrecognized compensation costs related to non-vested | $ 4,100 | |||||||
Weighted-average period over which cost is expected to be recognized | 1 year | |||||||
Pay-out for the awards granted | 98.70% | |||||||
Grant date deemed probable to vest | $ 2,259 | |||||||
Employee stock purchase plan description | In January 2022, the Company's Compensation & Talent Committee terminated the Prior ESPP with an effective date of February 28, 2022 | |||||||
Incentive Stock Options [Member] | President and Chief Operating Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock option equity instruments granted during the period | 76,868 | |||||||
Grant date fair value | $ 2,900 | |||||||
Share-based compensation arrangement by share-based payment award award vesting date | Jan. 22, 2024 | |||||||
Fair value assumptions, Risk free interest rate | 2.60% | |||||||
Fair value assumptions, Volatility rate | 25.80% | |||||||
Fair value assumptions, Dividend yield rate | 0.80% | |||||||
Share-based compensation arrangement by share-based payment award, options expiry date | Jul. 22, 2024 | |||||||
Incentive Stock Options [Member] | President and Chief Operating Officer [Member] | Range One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average fair value option granted | $ 272.88 | |||||||
Number of stock option equity instruments granted during the period | 35,679 | |||||||
Percentage of fair market value of the common stock on the grant date | 125% | |||||||
Incentive Stock Options [Member] | President and Chief Operating Officer [Member] | Range Two [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average fair value option granted | $ 294.71 | |||||||
Number of stock option equity instruments granted during the period | 41,189 | |||||||
Percentage of fair market value of the common stock on the grant date | 135% | |||||||
Incentive Stock Options [Member] | Chief Executive Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock option equity instruments granted during the period | 148,524 | |||||||
Grant date fair value | $ 5,500 | |||||||
Share-based compensation arrangement by share-based payment award award vesting date | Nov. 08, 2023 | |||||||
Fair value assumptions, Risk free interest rate | 3.10% | |||||||
Fair value assumptions, Volatility rate | 25.90% | |||||||
Fair value assumptions, Dividend yield rate | 0.80% | |||||||
Share-based compensation arrangement by share-based payment award, options expiry date | May 08, 2024 | |||||||
Incentive Stock Options [Member] | Chief Executive Officer [Member] | Range One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average fair value option granted | $ 257.78 | |||||||
Number of stock option equity instruments granted during the period | 69,113 | |||||||
Percentage of fair market value of the common stock on the grant date | 125% | |||||||
Incentive Stock Options [Member] | Chief Executive Officer [Member] | Range Two [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Weighted-average fair value option granted | $ 278.40 | |||||||
Number of stock option equity instruments granted during the period | 79,411 | |||||||
Percentage of fair market value of the common stock on the grant date | 135% | |||||||
Restricted Stock and Performance Shares [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Unrecognized compensation costs related to non-vested | $ 33,500 | |||||||
Weighted-average period over which cost is expected to be recognized | 1 year 4 months 24 days | |||||||
Performance Based Share [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Pay-out ranges, Minimum | 0% | 0% | ||||||
Pay-out ranges, Maximum | 200% | 200% | ||||||
Number of non-option equity instruments granted during the period | 3,986 | 1,070 | ||||||
Performance Based Share [Member] | Chief Executive Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Grant date fair value | $ 5,500 | |||||||
Share-based compensation arrangement by share-based payment award award vesting date | Nov. 08, 2023 | |||||||
Fair value assumptions, Risk free interest rate | 3.10% | |||||||
Fair value assumptions, Volatility rate | 26.10% | |||||||
Fair value assumptions, Dividend yield rate | 0.80% | |||||||
Number of non-option equity instruments granted during the period | 37,742 | |||||||
Performance Based Share [Member] | Chief Executive Officer [Member] | Range One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of non-option equity instruments granted during the period | 17,942 | |||||||
Fair value per share on the grant date | $ 257.78 | |||||||
Percentage of fair market value of the common stock on the grant date | 125% | |||||||
Performance Based Share [Member] | Chief Executive Officer [Member] | Range Two [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of non-option equity instruments granted during the period | 19,800 | |||||||
Fair value per share on the grant date | $ 278.40 | |||||||
Percentage of fair market value of the common stock on the grant date | 135% | |||||||
Performance Based Share [Member] | Chief Operating Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Grant date fair value | $ 2,900 | |||||||
Share-based compensation arrangement by share-based payment award award vesting date | Mar. 01, 2025 | Aug. 01, 2024 | Jan. 22, 2024 | |||||
Fair value assumptions, Risk free interest rate | 2.60% | |||||||
Fair value assumptions, Volatility rate | 25.90% | |||||||
Fair value assumptions, Dividend yield rate | 0.80% | |||||||
Number of non-option equity instruments granted during the period | 18,914 | |||||||
Performance Based Share [Member] | Chief Operating Officer [Member] | Range One [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of non-option equity instruments granted during the period | 8,969 | |||||||
Fair value per share on the grant date | $ 272.88 | |||||||
Percentage of fair market value of the common stock on the grant date | 125% | |||||||
Performance Based Share [Member] | Chief Operating Officer [Member] | Range Two [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of non-option equity instruments granted during the period | 9,945 | |||||||
Fair value per share on the grant date | $ 294.71 | |||||||
Percentage of fair market value of the common stock on the grant date | 135% | |||||||
Employees Stock Purchase Plan [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Shares available for grant under the stock incentive plan | 121,221 | |||||||
Period vested for option grants | 1 year | |||||||
Percentage of fair market value of the common stock on the grant date | 15% | |||||||
Number of non-option equity instruments granted during the period | 483 | 806 | 729 | |||||
Percentage of shares grant to participants | 20% | |||||||
Employee contribution on purchase of common stock | $ 2,000 | |||||||
Minimum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Period vested for option grants | 3 years | |||||||
Options Expiration Period | 6 years | |||||||
Maximum [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Period vested for option grants | 5 years | |||||||
Options Expiration Period | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Stock-Based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employees [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 28,176 | $ 26,002 | $ 24,410 |
Employees [Member] | Restricted Stock and Performance Shares [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 24,593 | 23,041 | 21,310 |
Employees [Member] | Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 3,583 | 2,961 | 3,100 |
Non-Employee Directors [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | 29,864 | 27,314 | 25,613 |
Non-Employee Directors [Member] | Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Total stock-based compensation | $ 1,688 | $ 1,312 | $ 1,203 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - Assumptions Used for the Black-Scholes Option-Pricing Model to Determine the Per Share Weighted Average Fair Value for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Expected life (years) | 5 years | 5 years | 5 years |
Risk-free interest rate | 1.50% | 0.40% | 1.60% |
Expected volatility | 32.60% | 31.20% | 26.80% |
Expected dividend yield | 0.70% | 0.40% | 0.60% |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Number of Shares, Beginning balance | 312,753 | 387,372 | 550,591 |
Number of Shares, Granted | 23,904 | 17,897 | 13,900 |
Number of Shares, Canceled | (1,646) | (616) | (218) |
Number of Shares, Exercised | (28,758) | (91,900) | (176,901) |
Number of Shares, Ending Balance | 306,253 | 312,753 | 387,372 |
Number of Shares, Exercisable | 42,119 | ||
Weighted Average Exercise Price, Beginning Balance | $ 274.35 | $ 223.60 | $ 175.16 |
Weighted Average Exercise Price, Granted | 352.15 | 517.88 | 368.10 |
Weighted Average Exercise Price, Canceled | 421.08 | 394.77 | 307.52 |
Weighted Average Exercise Price, Exercised | 157.08 | 107.05 | 84.07 |
Weighted Average Exercise Price, Ending Balance | 290.65 | $ 274.35 | $ 223.60 |
Weighted Average Exercise Price, Exercisable | $ 276.35 | ||
Remaining Contractual Term, Outstanding at December 31, 2022 | 1 year 10 months 24 days | ||
Remaining Contractual Term, Exercisable at December 31, 2022 | 1 year 10 months 24 days | ||
Intrinsic Value, Exercised | $ 3,597 | ||
Intrinsic Value, Ending Balance | 3,971 | ||
Intrinsic Value, Exercisable | $ 2,259 |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans - Schedule of Estimated, Target and Maximum Share Payouts (Details) | Dec. 31, 2022 shares |
January 15, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award Date | Jan. 15, 2020 |
2021 Estimate | 11,915 |
Target | 12,298 |
Maximum | 18,447 |
January 15, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award Date | Jan. 15, 2021 |
2021 Estimate | 8,776 |
Target | 12,185 |
Maximum | 24,370 |
August 1, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award Date | Aug. 01, 2021 |
2021 Estimate | 969 |
Target | 1,070 |
Maximum | 2,140 |
January 31, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award Date | Jan. 31, 2022 |
2021 Estimate | 15,701 |
Target | 18,155 |
Maximum | 36,310 |
March 1, 2022 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Award Date | Mar. 01, 2022 |
2021 Estimate | 3,447 |
Target | 3,986 |
Maximum | 7,972 |
Stock-Based Compensation Plan_7
Stock-Based Compensation Plans - Restricted Stock and Performance Share Activity (Detail) - Restricted Stock [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Number of Restricted Shares, Beginning balance | 162,610 | 230,647 | 346,032 |
Number of Restricted Shares, Granted | 72,861 | 47,142 | 38,907 |
Number of Restricted Shares, Performance share pay-out | 0 | 0 | 19,401 |
Number of Restricted Shares, Canceled | (8,513) | (3,911) | (3,480) |
Number of Restricted Shares, Vested | (64,602) | (111,268) | (170,213) |
Number of Restricted Shares, Ending balance | 162,356 | 162,610 | 230,647 |
Weighted Average Grant Date Fair Value, Beginning balance | $ 316.56 | $ 224.63 | $ 154.27 |
Weighted Average Grant Date Fair Value, Ending balance | $ 321.04 | $ 316.56 | $ 224.63 |
Earnings Per Share - Basic and
Earnings Per Share - Basic and Diluted Weighted Average Shares Outstanding Used to Compute Earnings Per Share (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Basic weighted average shares outstanding | 37,468,000 | 37,508,000 | 37,359,000 |
Dilutive effect of stock options and restricted stock | 175,000 | 589,000 | 785,000 |
Diluted weighted average shares outstanding | 37,643,000 | 38,097,000 | 38,144,000 |
Basic earnings per share | $ 6.68 | $ 6.88 | $ 8.01 |
Diluted earnings per share | $ 6.65 | $ 6.77 | $ 7.85 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Stock Options and Restricted Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Stock options and restricted stock excluded from the computation of diluted earnings per share | 310,447 | 41,240 | 21,127 |
Credit Agreements and Short-t_2
Credit Agreements and Short-term Financing - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 15, 2021 | Nov. 13, 2020 | Oct. 31, 2015 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line Of Credit Facility [Line Items] | ||||||
Revolving loans and letters of credit | $ 100,000,000 | |||||
Expiration period of credit agreement | Nov. 13, 2020 | |||||
Interest expense on borrowings | $ 0 | $ 100,000 | $ 100,000 | |||
Line of credit facility, description | On October 15, 2021, the Company replaced the 2020 Credit Agreement with a new three-year revolving credit facility (the “2021 Credit Agreement”) provided by a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent, | |||||
Interest expense on short-term debt | $ 400,000 | 800,000 | 300,000 | |||
Outstanding overdrafts payable | 0 | |||||
Collateralized Agreement [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Maximum available borrowings to subsidiary under agreement | 200,000,000 | |||||
Outstanding borrowings under agreement | 0 | |||||
Unused borrowing capacity, amount under agreement | $ 200,000,000 | |||||
Collateralized Agreement [Member] | Base Rate [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Interest rate, stated percentage | 1% | |||||
Prior Credit Agreement [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Period of credit agreement | 1 year | |||||
Revolving Credit Facility [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Revolving loans and letters of credit | $ 500,000,000 | $ 500,000,000 | ||||
Expiration period of credit agreement | Oct. 15, 2024 | |||||
Period of credit agreement | 3 years | 364 days | ||||
Letter of credit outstanding | $ 0 | |||||
Amount available under credit agreement | 500,000,000 | |||||
Additional borrowings under credit agreement | 250,000,000 | |||||
Interest expense on borrowings | $ 300,000 | $ 0 | $ 800,000 | |||
Standby Letters of Credit [Member] | ||||||
Line Of Credit Facility [Line Items] | ||||||
Sub-limit for letter of credit | $ 5,000,000 | $ 5,000,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | |
Operating lease, option to extend | Certain leases contain options to extend the initial term at the Company’s discretion |
Operating lease, existence of option to extend [true false] | true |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Term of lease contract | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Term of lease contract | 15 years |
Leases - Schedule of Components
Leases - Schedule of Components of Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease Cost [Line Items] | |||
Net lease cost | $ 13,175 | $ 13,190 | $ 13,465 |
Other, net [Member] | |||
Lease Cost [Line Items] | |||
Operating lease cost for subleased/assigned properties | 469 | 2,054 | 2,404 |
Sublease income for subleased/assigned properties | (405) | (2,079) | (2,420) |
Occupancy [Member] | |||
Lease Cost [Line Items] | |||
Operating lease cost | 13,015 | 13,202 | 13,455 |
Variable lease costs | $ 96 | $ 13 | $ 26 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 10 years 7 months 6 days | 11 years 6 months |
Weighted average discount rate | 5.90% | 5.90% |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 11,001 | |
2024 | 11,481 | |
2025 | 11,289 | |
2026 | 10,790 | |
2027 | 8,464 | |
2028 and thereafter | 59,630 | |
Total lease payments | 112,655 | |
Less: imputed interest | 29,979 | |
Present value of lease liabilities | $ 82,676 | $ 88,425 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Settlement days of bond transaction | within one to two trading days |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Detail) - Segment | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Number of operating segment | 1 | ||
Geographic Concentration Risk [Member] | Total Revenue and Long-lived Assets [Member] | United Kingdom [Member] | |||
Revenues From External Customers And Long Lived Assets [Line Items] | |||
Concentration Risk, Percentage | 10% | 10% | 10% |
Segment and Geographic Inform_4
Segment and Geographic Information - Summary of Revenue and Long-lived Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 718,300 | $ 698,951 | $ 689,125 |
Long-lived assets | 100,256 | 96,061 | |
Americas [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 581,935 | 568,918 | 583,164 |
Long-lived assets | 82,008 | 75,328 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 119,112 | 110,068 | 89,751 |
Long-lived assets | 17,723 | 20,547 | |
Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 17,253 | 19,965 | $ 16,210 |
Long-lived assets | $ 525 | $ 186 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Contribution to defined plans | $ 6.1 | $ 5.8 | $ 4 |
Non-qualified deferred cash incentive plan maximum eligibility percentage of employees | 100% | ||
Mutual fund investments and deferred compensation obligation, at fair value | $ 9.4 | $ 11.2 |
Cash and Cash Equivalents and_3
Cash and Cash Equivalents and Restricted Cash - Summary of Reconciliation of Cash and Cash Equivalents with Restricted or Segregated Cash (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash And Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 430,746 | $ 506,735 | |
Cash segregated under federal regulations | 50,947 | 50,159 | |
Deposits with clearing organizations and broker-dealers | 88,923 | 68,565 | |
Total | 572,664 | 625,567 | $ 608,050 |
Cash and Cash Equivalents [Member] | |||
Cash And Cash Equivalents [Line Items] | |||
Cash and cash equivalents | 430,746 | 506,735 | 460,858 |
Cash Segregated under Federal Regulations and Other [Member] | |||
Cash And Cash Equivalents [Line Items] | |||
Cash segregated under federal regulations | 50,947 | 50,159 | 50,059 |
Receivables from Broker-Dealers, Clearing Organizations and Customers [Member] | |||
Cash And Cash Equivalents [Line Items] | |||
Deposits with clearing organizations and broker-dealers | 88,923 | 68,565 | 97,043 |
Prepaid Expenses and Other Assets [Member] | |||
Cash And Cash Equivalents [Line Items] | |||
Other deposits | $ 2,048 | $ 108 | $ 90 |
Parent Company Information - Co
Parent Company Information - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||||
Cash and cash equivalents | $ 430,746 | $ 506,735 | ||
Investments, at fair value | 83,792 | 36,078 | ||
Accounts receivable | 78,450 | 63,881 | ||
Intangible assets, net of accumulated amortization | 98,065 | 116,377 | ||
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 100,256 | 96,061 | ||
Operating lease right-of-use assets | 66,106 | 70,960 | ||
Prepaid expenses and other assets | 68,289 | 27,066 | ||
Total assets | 1,607,775 | 1,530,452 | ||
Liabilities | ||||
Accrued employee compensation | 56,302 | 59,719 | ||
Income and other tax liabilities | 28,448 | 40,456 | ||
Accounts payable, accrued expenses and other liabilities | 55,263 | 71,218 | ||
Operating lease liabilities | 82,676 | 88,425 | ||
Total liabilities | 526,682 | 489,143 | ||
Stockholders' equity | ||||
Preferred stock | 0 | 0 | ||
Common stock | 123 | 123 | ||
Additional paid-in capital | 345,468 | 330,262 | ||
Treasury stock | 328,326 | 232,712 | ||
Retained earnings | 1,101,525 | 956,966 | ||
Accumulated other comprehensive loss | (37,697) | (13,330) | ||
Total stockholders' equity | 1,081,093 | 1,041,309 | $ 955,061 | $ 770,091 |
Total liabilities and stockholders' equity | 1,607,775 | 1,530,452 | ||
MarketAxess Holdings Inc. (Parent) [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 43,909 | 61,820 | ||
Investments, at fair value | 5,343 | 6,327 | ||
Accounts receivable | 769 | 0 | ||
Receivable from subsidiaries | 8,962 | 3,488 | ||
Intangible assets, net of accumulated amortization | 23 | 25 | ||
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization | 19,557 | 21,596 | ||
Operating lease right-of-use assets | 57,402 | 60,753 | ||
Investments in subsidiaries | 985,222 | 982,029 | ||
Prepaid expenses and other assets | 41,511 | 4,810 | ||
Income and other tax receivable | 11,474 | 1,763 | ||
Total assets | 1,174,172 | 1,142,611 | ||
Liabilities | ||||
Accrued employee compensation | 9,693 | 11,065 | ||
Income and other tax liabilities | 12 | 5,026 | ||
Accounts payable, accrued expenses and other liabilities | 11,087 | 9,233 | ||
Operating lease liabilities | 72,287 | 75,978 | ||
Total liabilities | 93,079 | 101,302 | ||
Stockholders' equity | ||||
Preferred stock | 0 | 0 | ||
Common stock | 123 | 123 | ||
Additional paid-in capital | 345,468 | 330,262 | ||
Treasury stock | (328,326) | (232,712) | ||
Retained earnings | 1,101,525 | 956,966 | ||
Accumulated other comprehensive loss | (37,697) | (13,330) | ||
Total stockholders' equity | 1,081,093 | 1,041,309 | ||
Total liabilities and stockholders' equity | 1,174,172 | 1,142,611 | ||
Series A Preferred Stock [Member] | ||||
Stockholders' equity | ||||
Preferred stock | 0 | 0 | ||
Series A Preferred Stock [Member] | MarketAxess Holdings Inc. (Parent) [Member] | ||||
Stockholders' equity | ||||
Preferred stock | $ 0 | $ 0 |
Parent Company Information - _2
Parent Company Information - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expenses | |||
Employee compensation and benefits | $ 182,104 | $ 170,916 | $ 156,885 |
Depreciation and amortization | 61,446 | 53,447 | 35,996 |
Professional and consulting fees | 33,949 | 41,925 | 32,304 |
General and administrative | 19,200 | 14,501 | 12,697 |
Total expenses | 391,424 | 361,716 | 314,397 |
Operating income (loss) | 326,876 | 337,235 | 374,728 |
Other income (expense) | |||
Interest income | 5,040 | 401 | 2,446 |
Interest expense | (700) | (842) | (1,142) |
Other, net | 5,946 | (2,871) | (1,673) |
Total other income (expense) | 11,412 | (3,312) | (369) |
Benefit from income taxes | 88,064 | 76,035 | 74,982 |
Net income | 250,224 | 257,888 | 299,377 |
Comprehensive income | 225,857 | 249,208 | 304,997 |
MarketAxess Holdings Inc. (Parent) [Member] | |||
Dividends from subsidiaries | 257,200 | 173,000 | 30,000 |
Expenses | |||
Employee compensation and benefits | 17,655 | 17,887 | 19,710 |
Depreciation and amortization | 2,136 | 2,123 | 2,068 |
Professional and consulting fees | 5,528 | 7,081 | 7,332 |
General and administrative | 3,081 | 3,620 | 2,723 |
Total expenses | 28,400 | 30,711 | 31,833 |
Operating income (loss) | 228,800 | 142,289 | (1,833) |
Other income (expense) | |||
Interest income | 272 | 132 | 2,799 |
Interest expense | (271) | 0 | (805) |
Equity in earnings of unconsolidated affiliate | 1,126 | 0 | 0 |
Other, net | (2,633) | (2,950) | (318) |
Total other income (expense) | (1,506) | (2,818) | 1,676 |
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries | 227,294 | 139,471 | (157) |
Benefit from income taxes | (7,710) | (6,472) | (23,444) |
Income before equity in undistributed income of subsidiaries | 235,004 | 145,943 | 23,287 |
Equity in undistributed income of subsidiaries | 15,220 | 111,945 | 276,090 |
Net income | 250,224 | 257,888 | 299,377 |
Other comprehensive income (loss), net | (24,367) | (8,680) | 5,620 |
Comprehensive income | $ 225,857 | $ 249,208 | $ 304,997 |
Parent Company Information - _3
Parent Company Information - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
Net income | $ 250,224 | $ 257,888 | $ 299,377 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 61,446 | 53,447 | 35,996 |
Amortization of operating lease right-of-use assets | 5,708 | 6,799 | 6,842 |
Stock-based compensation expense | 29,864 | 27,314 | 25,613 |
Deferred taxes | (6,547) | 3,118 | 10,099 |
Other | 555 | (466) | (550) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (15,136) | 15,598 | (18,015) |
(Increase) in prepaid expenses and other assets | (4,249) | 2,214 | (1,977) |
(Decrease) increase in accrued employee compensation | (3,417) | (2,607) | 14,961 |
Increase (decrease) in income and other tax liabilities | (4,768) | (5,638) | 16,189 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 11,384 | 215 | 6,006 |
(Decrease) in operating lease liabilities | (6,373) | (7,001) | (5,788) |
Net cash provided by operating activities | 289,231 | 282,091 | 404,489 |
Cash flows from investing activities | |||
Acquisitions, net of cash and cash equivalents acquired | 0 | (17,078) | (23,297) |
Acquisition of equity method investment | (34,400) | 0 | 0 |
Proceeds from maturities and sales | 0 | 0 | 170,657 |
Purchases | 0 | 0 | (32,865) |
Purchases of furniture, equipment and leasehold improvements | (13,142) | (17,493) | (15,010) |
Net cash (used in) provided by investing activities | (86,272) | (67,694) | 68,867 |
Cash flows from financing activities | |||
Cash dividend on common stock | (105,942) | (99,792) | (90,566) |
Exercise of stock options | 672 | 7,096 | 4,007 |
Withholding tax payments on restricted stock vesting and stock option exercises | (23,404) | (33,890) | (42,418) |
Repurchases of common stock | (87,540) | (63,189) | (16,135) |
Proceeds from short-term borrowings | 100,000 | 70,348 | 578,356 |
Repayments of short-term borrowings | (100,000) | (70,348) | (578,356) |
Net cash (used in) financing activities | (242,378) | (189,775) | (145,112) |
Effect of exchange rate changes on investments | (13,484) | (7,105) | 5,553 |
Cash and cash equivalents including restricted cash | |||
Net increase (decrease) for the period | (52,903) | 17,517 | 333,797 |
Beginning of period | 625,567 | 608,050 | 274,253 |
End of period | 572,664 | 625,567 | 608,050 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 88,677 | 70,003 | 45,046 |
Cash paid for interest | 652 | 830 | 1,142 |
Non-cash investing and financing activity: | |||
Exercise of stock options - cashless | 3,845 | 2,750 | 10,866 |
MarketAxess Holdings Inc. (Parent) [Member] | |||
Cash flows from operating activities | |||
Net income | 250,224 | 257,888 | 299,377 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,136 | 2,123 | 2,068 |
Amortization of operating lease right-of-use assets | 3,347 | 4,484 | 4,117 |
Stock-based compensation expense | 12,554 | 12,706 | 10,834 |
Deferred taxes | (5,076) | 1,712 | 3,644 |
Equity in undistributed income of subsidiaries | (15,220) | (111,945) | (276,090) |
Other | (441) | 0 | (671) |
Changes in operating assets and liabilities: | |||
(Increase) decrease in accounts receivable | (769) | 178 | (115) |
Decrease (increase) in receivable from subsidiaries | (7,931) | (47,371) | 25,049 |
(Increase) in prepaid expenses and other assets | (1,175) | (219) | (1,085) |
(Increase) decrease in income and other tax receivables | (9,711) | 7,265 | (1,240) |
(Decrease) increase in accrued employee compensation | (1,372) | 824 | 3,698 |
Increase (decrease) in income and other tax liabilities | 62 | (143) | 6,676 |
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 443 | (607) | (442) |
(Decrease) in operating lease liabilities | (3,689) | (4,673) | (4,055) |
Net cash provided by operating activities | 241,110 | 215,449 | 20,339 |
Cash flows from investing activities | |||
Acquisitions, net of cash and cash equivalents acquired | 0 | (17,079) | |
Acquisition of equity method investment | (34,400) | 0 | 0 |
Investments in subsidiaries | (8,326) | ||
Proceeds from maturities and sales | 170,657 | ||
Purchases | (32,865) | ||
Purchases of furniture, equipment and leasehold improvements | (96) | (198) | (337) |
Net cash (used in) provided by investing activities | (42,822) | (17,277) | 137,455 |
Cash flows from financing activities | |||
Cash dividend on common stock | (105,942) | (99,791) | (90,566) |
Exercise of stock options | 672 | 7,096 | 4,007 |
Withholding tax payments on restricted stock vesting and stock option exercises | (23,404) | (33,890) | (42,418) |
Repurchases of common stock | (87,540) | (63,189) | (16,135) |
Proceeds from short-term borrowings | 100,000 | 348,000 | |
Repayments of short-term borrowings | 100,000 | (348,000) | |
Net cash (used in) financing activities | (216,214) | (189,774) | (145,112) |
Effect of exchange rate changes on investments | 15 | (2,324) | (5,176) |
Cash and cash equivalents including restricted cash | |||
Net increase (decrease) for the period | (17,911) | 6,073 | 7,506 |
Beginning of period | 61,820 | 55,747 | 48,241 |
End of period | 43,909 | 61,820 | 55,747 |
Supplemental cash flow information: | |||
Cash paid for income taxes | 65,764 | 41,103 | 32,674 |
Cash paid for interest | 271 | 805 | |
Non-cash investing and financing activity: | |||
Exercise of stock options - cashless | 3,845 | 2,750 | 10,866 |
Mutual Funds Held In Rabbi Trust [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) decrease in trading investments | 1,813 | (2,306) | (2,671) |
Mutual Funds Held In Rabbi Trust [Member] | MarketAxess Holdings Inc. (Parent) [Member] | |||
Changes in operating assets and liabilities: | |||
(Increase) decrease in trading investments | $ 984 | $ (1,516) | $ (1,328) |