Parent Company Information

12 Months Ended

Dec. 31, 2023

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, 2023			December 31, 2022
	(In thousands)
ASSETS
Cash and cash equivalents	$	65,951		$	43,909
Investments, at fair value		30,225			5,343
Accounts receivable		1,923			769
Receivable from subsidiaries		18,010			8,962
Intangible assets, net of accumulated amortization		21			23
Furniture, equipment, leasehold improvements and capitalized software, net of accumulated depreciation and amortization		17,644			19,557
Operating lease right-of-use assets		55,113			57,402
Investments in subsidiaries		1,140,798			985,222
Prepaid expenses and other assets		45,140			41,511
Income and other tax receivable		7,674			11,474
Total assets	$	1,382,499		$	1,174,172
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accrued employee compensation		8,589		$	9,693
Income and other tax liabilities		3,000			12
Accounts payable, accrued expenses and other liabilities		8,212			11,087
Operating lease liabilities		69,735			72,287
Total liabilities		89,536			93,079
Stockholders' equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		123			123
Common stock non-voting		—			—
Additional paid-in capital		333,292			345,468
Treasury stock		(260,298	)		(328,326	)
Retained earnings		1,244,216			1,101,525
Accumulated other comprehensive loss		(24,370	)		(37,697	)
Total stockholders' equity		1,292,963			1,081,093
Total liabilities and stockholders' equity	$	1,382,499		$	1,174,172

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations
		Year Ended December 31,
		2023				2022				2021
		(In thousands)
Revenues	$		270,700		$		257,200		$		173,000
Expenses
Employee compensation and benefits			13,938				17,655				17,887
Depreciation and amortization			2,153				2,136				2,123
Professional and consulting fees			5,828				5,528				7,081
General and administrative			2,301				3,081				3,620
Total expenses			24,220				28,400				30,711
Operating income			246,480				228,800				142,289
Other income (expense)
Interest income			3,557				272				132
Interest expense			(155	)			(271	)			—
Equity in earnings of unconsolidated affiliate			735				1,126				—
Other, net			(369	)			(2,633	)			(2,950	)
Total other income (expense)			3,768				(1,506	)			(2,818	)
Income before income taxes and equity in undistributed earnings of subsidiaries			250,248				227,294				139,471
Benefit from income taxes			(5,586	)			(7,710	)			(6,472	)
Income before equity in undistributed income of subsidiaries			255,834				235,004				145,943
Equity in undistributed income of subsidiaries			2,221				15,220				111,945
Net income			258,055				250,224				257,888
Other comprehensive income (loss), net			13,327				(24,367	)			(8,680	)
Comprehensive income	$		271,382		$		225,857		$		249,208

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2023			2022			2021
	(In thousands)
Cash flows from operating activities
Net income	$	258,055		$	250,224		$	257,888
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,153			2,136			2,123
Amortization of operating lease right-of-use assets		3,361			3,347			4,484
Stock-based compensation expense		9,725			12,554			12,706
Deferred taxes		101			(5,076	)		1,712
Equity in undistributed income of subsidiaries		(2,221	)		(15,220	)		(111,945	)
Other		(4,675	)		441			—
Changes in operating assets and liabilities:
(Increase)/decrease in accounts receivable		(1,154	)		(769	)		178
Decrease in receivable from subsidiaries		5,474			7,931			47,371
Decrease/(increase) in prepaid expenses and other assets		1,296			(1,175	)		(219	)
(Increase)/decrease in mutual funds held in rabbi trust		(189	)		984			(1,516	)
(Decrease)/increase in accrued employee compensation		(1,104	)		(1,372	)		824
(Increase)/decrease in income and other tax receivables		3,800			(9,711	)		7,265
Increase/(decrease) increase in income and other tax liabilities		2,287			62			(143	)
(Decrease)/increase in accounts payable, accrued expenses and other liabilities		(861	)		443			(607	)
(Decrease) in operating lease liabilities		(3,624	)		(3,689	)		(4,673	)
Net cash provided by operating activities		272,424			241,110			215,449
Cash flows from investing activities
Acquisition of business, net of cash and cash equivalents acquired		(81,161	)		—			(17,079	)
Acquisition of equity method investment		—			(34,400	)		—
Investments in subsidiaries		(10,058	)		(8,326	)		—
Available-for-sale investments
Proceeds from maturities and sales		4,454			—			—
Purchases		(28,818	)		—			—
Purchases of furniture, equipment and leasehold improvements		(239	)		(96	)		(198	)
Net cash (used in) investing activities		(115,822	)		(42,822	)		(17,277	)
Cash flows from financing activities
Cash dividend on common stock		(109,658	)		(105,942	)		(99,791	)
Exercise of stock options		940			672			7,096
Withholding tax payments on restricted stock vesting and stock option exercises		(25,839	)		(23,404	)		(33,890	)
Repurchases of common stock		—			(87,540	)		(63,189	)
Proceeds from short-term borrowings		100,000			100,000			—
Repayments of short-term borrowings		(100,000	)		(100,000	)		—
Net cash (used in) financing activities		(134,557	)		(216,214	)		(189,774	)
Effect of exchange rate changes on investments		(3	)		15			(2,324	)
Cash and cash equivalents including restricted cash
Net increase (decrease) for the period		22,042			(17,911	)		6,073
Beginning of period		43,909			61,820			55,747
End of period	$	65,951		$	43,909		$	61,820

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows (Continued)
	Year Ended December 31,
	2023		2022		2021
	(In thousands)
Supplemental cash flow information:
Cash paid for income taxes	$	55,784	$	65,764	$	41,103
Cash paid for interest		35		271		—
Non-cash investing and financing activity:
Exercise of stock options - cashless	$	—	$	3,845	$	2,750
Right-of-use assets obtained in exchange for operating lease liabilities		1,072		—		—
Treasury stock used for acquisition of business		43,841		—		—