Parent Company Information (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021			December 31, 2020
	(In thousands)
ASSETS
Cash and cash equivalents	$	61,820		$	55,747
Investments, at fair value		6,327			4,811
Accounts receivable		—			178
Receivable from subsidiaries		3,488			41,986
Intangible assets, net of accumulated amortization		25			27
Furniture, equipment, leasehold improvements and capitalized    software, net of accumulated depreciation and amortization		21,596			23,518
Operating lease right-of-use assets		60,753			64,460
Investments in subsidiaries		982,029			853,626
Prepaid expenses and other assets		4,810			4,591
Income and other tax receivable		1,763			9,028
Total assets	$	1,142,611		$	1,057,972
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accrued employee compensation	$	11,065		$	10,241
Income and other tax liabilities		5,026			3,457
Accounts payable, accrued expenses and other liabilities		9,233			9,341
Operating lease liabilities		75,978			79,872
Total liabilities		101,302			102,911
Stockholders' equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		123			123
Common stock non-voting		—			—
Additional paid-in capital		330,262			329,742
Treasury stock		(232,712	)		(169,523	)
Retained earnings		956,966			799,369
Accumulated other comprehensive loss		(13,330	)		(4,650	)
Total stockholders' equity		1,041,309			955,061
Total liabilities and stockholders' equity	$	1,142,611		$	1,057,972

Condensed Statements of Operations and Comprehensive Income

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations and Comprehensive Income
	Year Ended December 31,
	2021			2020			2019
	(In thousands)
Dividends from subsidiaries	$	173,000		$	30,000		$	165,000
Expenses
Employee compensation and benefits		17,887			19,710			16,100
Depreciation and amortization		2,123			2,068			1,919
Professional and consulting fees		7,081			7,332			6,523
General and administrative		3,620			2,723			3,115
Total expenses		30,711			31,833			27,657
Operating income (loss)		142,289			(1,833	)		137,343
Other income (expense)
Investment income		132			2,799			5,305
Interest expense		—			(805	)		—
Other, net		(2,950	)		(318	)		(1,344	)
Total other income (expense)		(2,818	)		1,676			3,961
Income (loss) before income taxes and equity in undistributed earnings of subsidiaries		139,471			(157	)		141,304
Benefit from income taxes		(6,472	)		(23,444	)		(9,442	)
Income before equity in undistributed income of subsidiaries		145,943			23,287			150,746
Equity in undistributed income of subsidiaries		111,945			276,090			54,156
Net income		257,888			299,377			204,902
Other comprehensive income (loss), net		(8,680	)		5,620			2,124
Comprehensive income	$	249,208		$	304,997		$	207,026

Condensed Statements of Cash Flows

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2021			2020			2019
	(In thousands)
Cash flows from operating activities
Net income	$	257,888		$	299,377		$	204,902
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,123			2,068			1,919
Amortization of operating lease right-of-use assets		4,484			4,117			4,027
Stock-based compensation expense		12,706			10,834			10,547
Deferred taxes		1,712			3,644			1,255
Equity in undistributed income of subsidiaries		(111,945	)		(276,090	)		(54,156	)
Other		—			(671	)		328
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		178			(115	)		(4	)
Decrease (increase) in receivable from subsidiaries		47,371			(25,049	)		5,253
(Increase) decrease in prepaid expenses and other assets		(219	)		(1,085	)		933
(Increase) in mutual funds held in rabbi trust		(1,516	)		(1,328	)		(1,183	)
Increase in accrued employee compensation		824			3,698			876
Decrease (increase) in income and other tax receivable		7,265			(1,240	)		(3,219	)
(Decrease) increase in income and other tax liabilities		(143	)		6,676			(2,612	)
(Decrease) in accounts payable, accrued expenses and other liabilities		(607	)		(442	)		(2,039	)
(Decrease) increase in operating lease liabilities		(4,673	)		(4,055	)		1,191
Net cash provided by operating activities		215,449			20,339			168,018
Cash flows from investing activities
Acquisition of business, net of cash and cash equivalents acquired		(17,079	)		—			(102,320	)
Available-for-sale investments
Proceeds from maturities and sales		—			170,657			170,936
Purchases		—			(32,865	)		(160,827	)
Purchases of furniture, equipment and leasehold improvements		(198	)		(337	)		(1,424	)
Purchase of intangible asset		—			—			(30	)
Net cash (used in) provided by investing activities		(17,277	)		137,455			(93,665	)
Cash flows from financing activities
Cash dividend on common stock		(99,791	)		(90,566	)		(76,231	)
Exercise of stock options		7,096			4,007			1,207
Withholding tax payments on restricted stock vesting and stock option exercises		(33,890	)		(42,418	)		(25,820	)
Repurchases of common stock		(63,189	)		(16,135	)		(17,256	)
Proceeds from short-term borrowings		—			348,000			—
Repayments of short-term borrowings		—			(348,000	)		—
Net cash (used in) financing activities		(189,774	)		(145,112	)		(118,100	)
Effect of exchange rate changes on investments		(2,324	)		(5,176	)		(3,852	)
Cash and cash equivalents including restricted cash
Net increase (decrease) for the period		6,073			7,506			(47,599	)
Beginning of period		55,747			48,241			95,840
End of period	$	61,820		$	55,747		$	48,241
Supplemental cash flow information:
Cash paid for income taxes	$	41,103		$	32,674		$	41,025
Cash paid for interest		—			805			—
Non-cash investing and financing activity:
Exercise of stock options - cashless	$	2,750		$	10,866		$	1,811
Treasury stock used for acquisition of business		—			—			(48,830	)