UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K/A
(Amendment No. 1)
(Mark One)
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2011
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission File Number 001-34091
MARKETAXESS HOLDINGS INC.
(Exact name of registrant as specified in its charter)
Delaware | 52-2230784 | |
(State of incorporation) | (IRS Employer Identification No.) | |
299 Park Avenue, New York, New York | 10171 | |
(Address of principal executive offices) | (Zip Code) |
(212) 813-6000
(Registrants telephone number, including area code)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
Title of each class: | Name of each exchange on which registered: | |
Common Stock, par value $0.003 per share | NASDAQ Global Select Market |
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ¨ No x
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Large accelerated filer | x | Accelerated filer | ¨ | |||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x
The aggregate market value of the shares of common stock and non-voting common stock held by non-affiliates of the registrant as of June 30, 2011 (the last business day of the registrants most recently completed second fiscal quarter) was approximately $922.6 million computed by reference to the last reported sale price on the NASDAQ Global Select Market on that date. For purposes of this calculation, affiliates are considered to be officers, directors and holders of 10% or more of the outstanding common stock of the registrant on that date. The registrant had 36,728,696 shares of common stock, 1,193,029 of which were held by affiliates, and 2,585,654 shares of non-voting common stock outstanding on that date.
At February 16, 2012, the aggregate number of shares of the registrants common stock and non-voting common stock outstanding was 38,190,699.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrants definitive proxy statement for the 2012 Annual Meeting of Stockholders are incorporated by reference into Items 10, 11, 12, 13 and 14 of Part III of this Form 10-K.
EXPLANATORY NOTE
This Amendment No. 1 to MarketAxess Holdings Inc.s Annual Report on Form 10-K for the year ended December 31, 2011, as filed with the Securities and Exchange Commission on February 17, 2012 (the Original Filing), is being filed solely to include certain eXtensible Business Reporting Language (XBRL) information in Exhibit 101 that was inadvertently excluded from the timely filed Original Filing, as provided for under Rule 405 of Regulation S-T.
Exhibit 101 provides the following items formatted in XBRL: (i) Consolidated Statements of Financial Condition as of December 31, 2011 and 2010; (ii) Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009; (iii) Consolidated Statements of Changes in Stockholders Equity and Accumulated Other Comprehensive Loss for the years ended December 2011, 2010 and 2009; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009; and (v) Notes to Consolidated Financial Statements.
As provided in Rule 406T of Regulation S-T, the interactive data files included in Exhibit 101 are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
This Amendment No. 1 to the Form 10-K speaks as of the date of the Original Filing, does not reflect subsequent events occurring after the date of the Original Filing or modify or update in any way any disclosures made in the Original Filing. Other than as described above, no other changes have been made to the Original Filing. Investors should continue to rely on the Original Filing in making investment decisions.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
MARKETAXESS HOLDINGS INC. | ||||||
Date: July 6, 2012 | By: | /s/ RICHARD M. MCVEY | ||||
Name: | Richard M. McVey | |||||
Title: | Chief Executive Officer |
EXHIBIT INDEX
101.INS | XBRL Instance Document*** | |
101.SCH | XBRL Taxonomy Extension Schema Document*** | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document*** | |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document*** | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document*** | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document*** |
*** | Attached as Exhibit 101 to this Amendment No. 1 to Annual Report on Form 10-K are the following materials, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Financial Condition as of December 31, 2011 and 2010; (ii) Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009; (iii) Consolidated Statements of Changes in Stockholders Equity and Accumulated Other Comprehensive Loss for the years ended December 2011, 2010 and 2009; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2011, 2010 and 2009; and (v) Notes to Consolidated Financial Statements. |
Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.
Fair Value Measurements (Details 2) (USD $)
In Thousands, unless otherwise specified |
Dec. 31, 2011
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Dec. 31, 2010
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Summary of the Company's securities available-for-sale | ||
Amortized cost | $ 76,473 | $ 71,589 |
Gross unrealized gains | 1,645 | 982 |
Gross unrealized losses | (8) | (19) |
Total securities available-for-sale | 78,110 | 72,552 |
U.S. government obligations [Member]
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Summary of the Company's securities available-for-sale | ||
Amortized cost | 53,832 | 40,383 |
Gross unrealized gains | 1,628 | 968 |
Total securities available-for-sale | 55,460 | 41,351 |
Municipal securities [Member]
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Summary of the Company's securities available-for-sale | ||
Amortized cost | 20,613 | 29,150 |
Gross unrealized gains | 7 | 14 |
Gross unrealized losses | (8) | (19) |
Total securities available-for-sale | 20,612 | 29,145 |
Corporate bonds [Member]
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Summary of the Company's securities available-for-sale | ||
Amortized cost | 2,028 | 2,056 |
Gross unrealized gains | 10 | |
Total securities available-for-sale | $ 2,038 | $ 2,056 |
Related Party (Details Textual) (USD $)
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12 Months Ended |
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Dec. 31, 2011
Promissory_Note
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Related Party (Textual) [Abstract] | |
Vesting Period | 3 Year |
Number of Promissory note | 4 |
Promissory notes Maturity period | 11 years |
Chief Executive Officer [Member]
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Related Party Transaction [Line Items] | |
Common stock awarded | 289,581 |
Common stock awarded, per share | 3.60 |
Income Taxes (Details 1)
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12 Months Ended | ||
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Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Difference between the Company's reported provision for income taxes and the U.S. federal statutory rate | |||
U.S. federal tax at statutory rate | 35.00% | 35.00% | 35.00% |
State and local taxes net of federal benefit | 5.20% | 4.60% | 6.10% |
Stock compensation | (0.10%) | (0.10%) | 1.20% |
Change in rates for deferred tax assets | (0.20%) | (0.10%) | 5.20% |
Tax-exempt interest income | 0.00% | (0.10%) | (0.60%) |
Other, net | (0.50%) | (1.10%) | (0.50%) |
Provision for income taxes | 39.40% | 38.30% | 46.40% |
Stockholders' Equity (Details) (USD $)
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1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 31, 2011
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Jun. 30, 2010
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Mar. 31, 2012
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Dec. 31, 2011
Fund
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Dec. 31, 2010
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Dec. 31, 2009
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Jan. 31, 2011
Series B Preferred Stock
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Dec. 31, 2011
Series B Preferred Stock
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Dec. 31, 2011
Common Stock Voting
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Dec. 31, 2010
Common Stock Voting
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Dec. 31, 2011
Common Stock Non-Voting
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Dec. 31, 2010
Common Stock Non-Voting
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Dec. 31, 2011
Warrants [Member]
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Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||
Common stock, shares authorized | 110,000,000 | 110,000,000 | 110,000,000 | 10,000,000 | 10,000,000 | ||||||||
Series B Preferred Stock, shares authorized | 35,000 | ||||||||||||
Shares of common stock | 3,500,000 | ||||||||||||
Authorized a share repurchase program | $ 35,000,000 | $ 30,000,000 | |||||||||||
Closing price of the common stock | 17.50 | ||||||||||||
Consecutive trading days | 65 days | ||||||||||||
Shares of common stock | 3,499,999 | ||||||||||||
Common stock, shares issued | 37,725,394 | 35,945,001 | 2,585,654 | 2,585,654 | |||||||||
Common stock, shares issued | 455,465 | ||||||||||||
Shares conversion price | $ 10.00 | ||||||||||||
Stockholders' Equity (Textual) [Abstract] | |||||||||||||
Aggregate purchase price | 35,000,000 | ||||||||||||
Common stock at an exercise price | 10.00 | ||||||||||||
Warrants to purchase shares, common stock | 700,000 | ||||||||||||
Placement agent fee and legal fees | 33,500,000 | ||||||||||||
Common stock entitles | One | ||||||||||||
Outstanding shares of common stock | 9.99% | ||||||||||||
Common stock shares repurchased | 237,998 | 1,939,620 | |||||||||||
Cost of common stock shares repurchased | $ 6,935,000 | $ 30,000,000 | |||||||||||
Securities purchase agreement funds managed | 2 | ||||||||||||
Quarterly cash dividend | $ 0.11 | $ 0.36 | $ 0.28 | $ 0.07 |
Capitalized Software, Furniture, Equipment and Leasehold Improvements (Details 1) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Capitalized Software, Furniture, Equipment and Leasehold Improvements [Abstract] | |||
Software development costs | $ 4.1 | $ 1.9 | $ 1.9 |
Organization and Principal Business Activity (Details Textual)
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12 Months Ended |
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Dec. 31, 2011
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Organization and Principal Business Activity [Abstract] | |
Date of incorporation | Apr. 11, 2000 |
Stock-Based Compensation Plans (Details 1)
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12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
Y
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Dec. 31, 2010
Y
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Dec. 31, 2009
Y
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The assumptions used for the Black-Scholes option-pricing model to determine the per share weighted average fair value for options granted | |||
Expected life (years) | 9.9 | 5.0 | 5.4 |
Risk-free interest rate | 3.30% | 2.20% | 2.40% |
Expected volatility | 48.00% | 50.00% | 49.80% |
Expected dividend yield | 1.30% | 2.00% | 0.00% |
Fair Value Measurements (Tables)
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12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation of the company's assets measured at fair value |
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Summary of the foreign currency forward contract |
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Summary of the company's securities available-for-sale |
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Summary of contractual maturities of securities available-for-sale |
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Fair values and unrealized losses on securities available-for-sale |
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Income Taxes (Details 3) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Valuation Allowance [Abstract] | |||
Beginning of year | $ 249 | $ 666 | $ 567 |
Increase (decrease) to valuation allowance attributable to: | |||
Net operating losses | 38 | (132) | 39 |
Temporary differences | 186 | ||
Tax credits | (285) | (126) | |
End of year | $ 287 | $ 249 | $ 666 |
Fair Value Measurements (Details Textual) (USD $)
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3 Months Ended | 12 Months Ended | |||
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Mar. 31, 2012
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Mar. 31, 2011
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Dec. 31, 2009
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Dec. 31, 2011
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Dec. 31, 2010
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Fair Value Measurements (Textual) [Abstract] | |||||
Gross and net fair value asset | $ 155,000 | $ (337,000) | |||
Proceeds from the maturities of securities available-for-sale | $ 27,400,000 | $ 65,400,000 | $ 22,100,000 |
Customer Concentration (Details Textual)
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12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
customer
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Dec. 31, 2010
customer
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Dec. 31, 2009
customer
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Customer Concentration (Textual) [Abstract] | |||
Concentration risk number of customer | 0 | 0 | 0 |
Total revenue, accounted for single client | More than 10% | More than 10% | More than 10% |
Percentage of trading volumes by single client | 14.60% | 15.80% | 12.10% |
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2011
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Dec. 31, 2010
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Dec. 31, 2009
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Current: | |||
Federal | $ 3,605 | $ (308) | |
State and local | 2,793 | 355 | 57 |
Foreign | 1,194 | 1,348 | 2,022 |
Total current provision | 7,592 | 1,703 | 1,771 |
Deferred | |||
Federal | 20,531 | 14,494 | 6,763 |
State and local | 2,890 | 3,170 | 5,014 |
Foreign | 16 | 115 | 399 |
Total deferred provision | 23,437 | 17,779 | 12,176 |
Provision for income taxes | $ 31,029 | $ 19,482 | $ 13,947 |
Net Capital Requirements and Customer Protection Requirements
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12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2011
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Net Capital Requirements and Customer Protection Requirements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Capital Requirements and Customer Protection Requirements |
3. Net Capital Requirements and Customer Protection Requirements MarketAxess Corporation, a U.S. subsidiary, is a registered broker-dealer with the Securities and Exchange Commission (“SEC”) and is a member of the Financial Industry Regulatory Authority (“FINRA”). MarketAxess Corporation claims exemption from SEC Rule 15c3-3, as it does not hold customer securities or funds on account, as defined. Pursuant to the Uniform Net Capital Rule under the Securities Exchange Act of 1934, MarketAxess Corporation is required to maintain minimum net capital, as defined, equal to the greater of $100,000 or 6 2/3% of aggregate indebtedness. MarketAxess Europe Limited, a U.K. subsidiary, is registered as a Multilateral Trading Facility dealer with the Financial Services Authority (“FSA”) in the U.K. MarketAxess Canada Limited, a Canadian subsidiary, is registered as an Alternative Trading System dealer under the Securities Act of Ontario and is a member of the Investment Industry Regulatory Organization of Canada. MarketAxess Europe Limited and MarketAxess Canada Limited are subject to certain financial resource requirements of the FSA and the Ontario Securities Commission, respectively. The following table sets forth the capital requirements, as defined, that the Company’s subsidiaries were required to maintain as of December 31, 2011:
The Company’s regulated subsidiaries are subject to U.S., U.K. and Canadian regulations which prohibit 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, respectively, without prior notification to or approval from such regulated entity’s principal regulator.
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