10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q/A

(Amendment No. 1)

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

or

¨ 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

(Registrant’s telephone number, including area code)

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 Web site, 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 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

As of April 25, 2012, the number of shares of the Registrant’s voting common stock outstanding was 36,498,912.

EXPLANATORY NOTE

This Amendment No. 1 to MarketAxess Holdings Inc.’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2012, as filed with the Securities and Exchange Commission on April 26, 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 March 31, 2012 and December 31, 2011; (ii) Consolidated Statements of Operations for the Three Months Ended March 31, 2012 and 2011; (iii) Consolidated Statement of Comprehensive Income for the Three Months ended March 31, 2012 and 2011; (iv) Consolidated Statement of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2012; (v) Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011; and (vi) 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-Q 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
			(principal executive officer)
Date: July 6, 2012	By:	/s/ ANTONIO L. DELISE
		Name:	Antonio L. DeLise
		Title:	Chief Financial Officer
			(principal financial and accounting 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 Quarterly Report on Form 10-Q are the following materials, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Statements of Financial Condition as of March 31, 2012 and December 31, 2011; (ii) Consolidated Statements of Operations for the Three Months Ended March 31, 2012 and 2011; (iii) Consolidated Statement of Comprehensive Income for the Three Months ended March 31, 2012 and 2011; (iv) Consolidated Statement of Changes in Stockholders’ Equity for the Three Months Ended March 31, 2012; (v) Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011; and (vi) 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.

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Fair Value Measurements (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Fair Value Measurements (Textual) [Abstract]
Gross and net fair value asset	$ (311,000)		$ 155,000
Proceeds from the maturities of securities available-for-sale	$ 21,500,000	$ 4,300,000

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Series B Preferred Stock Conversion (Details Textual) (USD $)	1 Months Ended		3 Months Ended	12 Months Ended
	Nov. 30, 2011	Jan. 31, 2011	Mar. 31, 2012	Dec. 31, 2008 Fund
Series B Preferred Stock Conversion (Textual) [Abstract]
Number of funds				2
Series B Preferred Stock Sold to Purchaser				35,000
Number of common stock aggregate on conversion of Series B Preferred Stock				3,500,000
Number of shares to be taken Up from Warrants				700,000
Exercise price of Warrants				$ 10.00
Net proceeds from Warrant (Series B Stock)				$ 35.0
Net proceeds after the placement (Series B Stock)				$ 33.5
Expiration period of warrants				Tenth anniversary of the date they were first issued
Conversion price of convertible stock to common share				$ 10.00
Minimum market price of common stock				$ 17.50
No of consecutive trading days				65 days
Preferred Stock, Conversion date			Jan. 24, 2011
All shares of the Series B Preferred Stock converted into common Stock		3,499,999
Common stock issued upon exercise of warrants on net exercise basis	455,465

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Stock Based Compensation Plans (Details Textual) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012 Y
Stock Based Compensation Plans (Textual) [Abstract]
Expected pay out target of common stock	44,843
Number of options to purchase shares of common stock	375
Weighted-average fair value for each option granted	$ 11.99
Unrecognized compensation costs related to non-vested	$ 17.3
Weighted-average period over which cost is expected to be recognized	2.6
Restricted stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of the Stock	$ 31.03
Restricted stock and performance shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock and performance-based shares	183,988
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair Value of the Stock	$ 30.64

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Share Repurchases (Details Textual) (USD $)	1 Months Ended	3 Months Ended	1 Months Ended	3 Months Ended
	Oct. 31, 2011	Mar. 31, 2012	Feb. 29, 2012 Common Stock Non-Voting [Member]	Mar. 31, 2012 Common Stock Non-Voting [Member]
Class of Stock [Line Items]
Non-voting common stock repurchased		1,821,730	1,821,730
Cost of non-voting common stock repurchased		$ 71,116,000	$ 52,900,000	$ 7,000
Share Repurchases (Textual) [Abstract]
Authorized a share repurchase program	35,000,000
Common stock shares repurchased		820,894
Cost of common stock shares repurchased		$ 25,200,000

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Related Party (Details Textual)	1 Months Ended	3 Months Ended
	Feb. 29, 2012	Mar. 31, 2012
Related Party (Textual) [Abstract]
Public offering common stock shares	3,597,333
Repurchased of common stock shares		1,821,730

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Net Capital Requirements and Customer Protection Requirements (Details Textual) (USD $)	Mar. 31, 2012
Net Capital Requirements and Customer Protection Requirements (Textual) [Abstract]
Minimum net capital required to be maintained	$ 100,000
Percentage of aggregate indebtedness	0.0667

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Income Taxes (Tables)

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Schedule of provision for income taxes

The provision for income taxes consists of the following:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Current:
Federal	$	3,565		$	—
State and local		1,170			246
Foreign		(90	)		(206	)
Total current provision		4,645			40
Deferred:
Federal		3,545			4,460
State and local		872			1,784
Foreign		193			602
Total deferred provision		4,610			6,846
Provision for income taxes	$	9,255		$	6,886

Summary of company's net deferred tax assets

The following is a summary of the Company’s net deferred tax assets:

	As of
	March 31, 2012			December 31, 2011
	(In thousands)
Deferred tax assets and liabilities	$	5,977		$	8,376
Valuation allowance		(293	)		(287	)
Deferred tax assets, net	$	5,684		$	8,089

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Earnings Per Share (Details Textual) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Earnings Per Common Share (Textual) [Abstract]
Stock options, restricted stock and warrants excluded from the computation of diluted earnings per share	0.3	0.3

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Current:
Federal	$ 3,565
State and local	1,170	246
Foreign	(90)	(206)
Total current provision	4,645	40
Deferred
Federal	3,545	4,460
State and local	872	1,784
Foreign	193	602
Total deferred provision	4,610	6,846
Provision for income taxes	$ 9,255	$ 6,886

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Fair Value Measurements (Details 3) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of contractual maturities of securities available-for-sale
Less than one year	$ 13,377	$ 31,554
Due in 1 - 5 years	46,709	46,556
Total securities available-for-sale	$ 60,086	$ 78,110

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Commitments and Contingencies (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Commitments and Contingencies (Textual) [Abstract]
Rental expense	$ 0.7	$ 0.6
Future lease obligations under sublease arrangements	1.4
Settlement days of bond transaction	Within one to three trading days
Collateral deposit	0.9
Standby Letters of Credit [Member]
Loss Contingencies [Line Items]
Contingent obligation for standby letter of credit issued to Landlord	$ 1.7

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Stock-Based Compensation Plans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Stock-based compensation expense
Total stock-based compensation	$ 1,962	$ 2,290
Employee [Member]
Stock-based compensation expense
Total stock-based compensation	1,813	2,117
Restricted stock and performance shares [Member] | Employee [Member]
Stock-based compensation expense
Total stock-based compensation	1,668	1,822
Stock options [Member] | Employee [Member]
Stock-based compensation expense
Total stock-based compensation	145	295
Restricted stock [Member] | Non employee director [Member]
Stock-based compensation expense
Total stock-based compensation	$ 149	$ 173

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Significant Accounting Policies

3 Months Ended

Mar. 31, 2012

Significant 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. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The consolidated financial information as of December 31, 2011 has been derived from audited financial statements not included herein.

These unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) with respect to Form 10-Q and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the interim periods presented. In accordance with such rules and regulations, certain disclosures that are normally included in annual financial statements have been omitted. Interim period operating results may not be indicative of the operating results for a full year.

Cash and Cash Equivalents

Cash and cash equivalents includes cash and money market instruments that are primarily maintained at one major global bank. Given this concentration, the Company is exposed to certain credit risk. The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less.

Securities Available-for-Sale

The Company classifies its marketable securities as available-for-sale securities. Unrealized marketable securities gains and losses, net of taxes, are reflected as a net amount under the caption of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Realized gains and losses are recorded in the Consolidated Statements of Operations in other revenues. For the purpose of computing realized gains and losses, cost is determined on a specific identification basis.

The Company assesses whether an other-than-temporary impairment loss on the investments has occurred due to declines in fair value or other market conditions. The portion of an other-than-temporary impairment related to credit loss is recorded as a charge in the Consolidated Statements of Operations. The remainder is recognized in other comprehensive loss if the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. No charges for other-than-temporary losses were recorded during the three months ended March 31, 2012 and 2011.

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, securities available-for-sale portfolio and one foreign currency forward contract.

Allowance for Doubtful Accounts

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 doubtful accounts is based upon the historical collection experience and specific collection issues that have been identified. Additions to the allowance for doubtful accounts are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations.

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. Leasehold improvements are stated at cost and are amortized using the straight-line method 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 at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. The Company capitalizes employee compensation and related benefits and third party consulting costs incurred during the preliminary software project stage. 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.

Cash Provided as Collateral

Cash is provided as collateral for electronic bank settlements and broker-dealer clearance accounts. Cash provided as collateral is included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition.

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 general and administrative expense in the Consolidated Statements of Operations.

The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiary. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition.

Revenue Recognition

The majority of the Company’s revenues are derived from commissions for trades executed on its platform and distribution fees that are billed to its broker-dealer clients on a monthly basis. The Company also derives revenues from technology products and services, information and user access fees, investment income and other income.

Commission revenue. Commissions are generally calculated as a percentage of the notional dollar volume of bonds traded on the platform and vary based on the type and maturity of the bond traded. Under the Company’s transaction fee plans, bonds that are more actively traded or that have shorter maturities are generally charged lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. For trades that the Company executes between and among institutional investor and broker-dealer clients on a riskless principal basis by serving as counterparty to both the buyer and the seller, the Company earns the commission through the difference in price between the two back-to-back trades. Fee programs for certain products include distribution fees which are recognized monthly.

Technology products and services. The Company generates revenues from technology software licenses, maintenance and support services (referred to as post-contract technical support or “PCS”) and professional consulting services. Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection is considered probable. The Company generally sells software licenses and PCS together as part of multiple-element arrangements. The Company also enters into contracts for technology integration consulting services unrelated to any software product.

For arrangements that include multiple elements, generally software licenses and PCS, the Company allocates and defers revenue for the undelivered items based on vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered items as license revenue. The Company’s VSOE of each element is based on historical evidence of stand-alone sales of these elements to third parties or the stated renewal rate for the undelivered elements. When VSOE does not exist for undelivered items, the entire arrangement fee is recognized ratably over the performance period. For PCS, the term is typically one year and revenue is recognized over the duration of the arrangement on a straight-line basis.

Professional consulting services are generally separately priced and are typically not essential to the functionality of the Company’s software products. Revenues from these services are recognized separately from the license fee. Generally, revenue from time-and-materials consulting contracts is recognized as services are performed.

Revenues from contracts for technology integration consulting services are recognized on the percentage-of-completion method. Percentage-of-completion accounting involves calculating the percentage of services provided during the reporting period compared to the total estimated services to be provided over the duration of the contract. If estimates indicate that a contract loss will occur, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated direct and indirect costs of the contract exceed the estimated total revenues that will be generated by the contract. There were no contract loss provisions recorded as of March 31, 2012 and 2011. Revenues recognized in excess of billings are recorded as unbilled services within other assets. Billings in excess of revenues recognized are recorded as deferred revenues until revenue recognition criteria are met.

Initial set-up fees. The Company enters into agreements with its broker-dealer clients pursuant to which the Company provides access to its platform through a non-exclusive and non-transferable license. Broker-dealer clients may pay an initial set-up fee, which is typically due and payable upon execution of the broker-dealer agreement. The initial set-up fee, if any, varies by agreement. Revenue is recognized over the initial term of the agreement, which is generally two years.

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.

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. The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expenses in the Consolidated Statements of Operations.

Business Combinations, Goodwill and Intangible Assets

Business acquisitions 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 is judgmental in nature and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives.

An impairment review of goodwill is performed on an annual basis and more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized on a straight-line basis over their estimated useful lives, ranging from five to ten years. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment.

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 U.S. generally accepted accounting principles 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.

Recent Accounting Pronouncements

In 2011, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that simplifies goodwill impairment tests. The new guidance states that a “qualitative” assessment may be performed to determine whether further impairment testing is necessary. This accounting standard is effective for fiscal years beginning on or after December 15, 2011. The Company adopted the new guidance effective January 1, 2012 and there was no material impact on the Company’s Consolidated Financial Statements.

In 2011, the FASB issued new disclosure guidance related to the presentation of the Statement of Comprehensive Income. This guidance eliminates the current option to report other comprehensive income and its components in the Consolidated Statement of Changes in Stockholders’ Equity. The requirement to present reclassification adjustments out of accumulated other comprehensive income on the face of the Consolidated Statement of Operations has been deferred. This accounting standard is effective for fiscal years beginning on or after December 15, 2011. The Company adopted the new guidance effective January 1, 2012 and has presented a separate Statement of Comprehensive Income in the Company’s Consolidated Financial Statements.

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Income Taxes (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of company's net deferred tax assets
Deferred tax assets and liabilities	$ 5,977	$ 8,376
Valuation allowance	(293)	(287)
Deferred tax assets, net	$ 5,684	$ 8,089

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Commitments and Contingencies (Tables)

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

Summary of minimum rental commitments under operating and capital leases

Year Ending March 31,	Operating Leases		Capital Leases
	(In thousands)
Remainder of 2012	$	1,358	$	252
2013		1,794		322
2014		1,760		42
2015		2,022		—
2016		2,035		—
2017 and thereafter		10,189		—
Minimum lease payments		19,158		616
Less amount representing interest		—		40
	$	19,158	$	576

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Computation of basic and diluted earnings per common share

The following table sets forth the computation of basic and diluted earnings per common share.

	Three Months Ended March 31,
	2012		2011
	(In thousands, except per share amounts)
Net income	$	13,493	$	10,780
Common stock - voting		35,276		33,921
Common stock - non-voting		1,658		2,586
Basic weighted average shares outstanding		36,934		36,507
Basic earnings per share	$	0.37	$	0.30
Weight average shares outstanding		36,934		36,507
Effect of dilutive shares:
Stock options and restricted stock		1,761		2,422
Warrants		—		372
Diluted weighted average shares outstanding		38,695		39,301
Diluted earnings per share	$	0.35	$	0.27

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Income Taxes (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012
Income Taxes (Textual) [Abstract]
Tax benefit from the exercise of warrants in prior years	$ 2,163.0
Tax loss carryforward	10.4
Reimbursement claim on paid sales tax	$ 0.7

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Organization and Principal Business Activity (Details Textual)	3 Months Ended
	Mar. 31, 2012
Organization and Principal Business Activity [Abstract]
Date of incorporation	Apr. 11, 2000

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Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2012 Y Contract	Mar. 31, 2011
Significant Accounting Policies (Textual) [Abstract]
Maximum maturity period for classification of investments as cash equivalents	3 months
Investments other-than-temporary losses
Number of foreign currency forward contracts	1
Estimated life of fixed assets, Minimum	3
Estimated life of fixed assets, Maximum	7
Period of amortization of software development costs	3
Contract loss provisions recorded
Term of agreement for revenue recognition	2 years
Estimated life of intangible assets, Minimum	5
Estimated life of intangible assets, Maximum	10

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Organization and Principal Business Activity

3 Months Ended

Mar. 31, 2012

Organization and Principal Business Activity [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, the Company operates an electronic trading platform for corporate bonds and other types of fixed-income instruments through which the Company’s institutional investor clients can access the liquidity provided by its broker-dealer clients. The Company’s multi-dealer trading platform allows its institutional investor clients to simultaneously request competitive, executable bids or offers from multiple broker-dealers, and to execute trades with the broker-dealer of their choice. The Company offers its clients the ability to trade U.S. high-grade corporate bonds, European high-grade corporate bonds, credit default swaps, agencies, high yield and emerging markets bonds and asset-backed and preferred securities. The Company also executes certain bond transactions between and among institutional investor and broker-dealer clients on a riskless principal basis by serving as counterparty to both the buyer and the seller in matching back-to-back trades, which then settle through a third-party clearing organization. Through its Corporate BondTicker™ service, the Company provides fixed-income market data, analytics and compliance tools that help its clients make trading decisions. In addition, the Company provides FIX (Financial Information eXchange) message management tools, connectivity solutions and ancillary technology services that facilitate the electronic communication of order information between trading counterparties.

For 2011, JPMorgan Chase & Co. (“JPM”) was the Company’s sole stockholder broker-dealer client (the “Stockholder Broker-Dealer Client”). During the first quarter of 2012, JPM sold its shares of the Company’s common stock and is no longer considered a related party. See Note 7, “Related Party” and Note 13, “Share Repurchases.”

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Net Capital Requirements and Customer Protection Requirements (Details) (USD $)	Mar. 31, 2012
Net Capital Requirements and Customer Protection Requirements
Minimum net capital required	$ 100,000
MarketAxess Corporation [Member]
Net Capital Requirements and Customer Protection Requirements
Net capital	62,641,000
Minimum net capital required	1,636,000
Excess net capital	61,005,000
MarketAxess Europe Limited [Member]
Net Capital Requirements and Customer Protection Requirements
Net capital	28,967,000
Minimum net capital required	3,276,000
Excess net capital	25,691,000
MarketAxess Canada Limited [Member]
Net Capital Requirements and Customer Protection Requirements
Net capital	414,000
Minimum net capital required	276,000
Excess net capital	$ 138,000

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Goodwill and Intangible Assets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of company's intangible assets
Cost	$ 9,390	$ 9,390
Accumulated Amortization	(6,985)	(6,630)
Net Carrying Amount	2,405	2,760
Technology [Member]
Summary of company's intangible assets
Cost	4,010	4,010
Accumulated Amortization	(3,377)	(3,202)
Net Carrying Amount	633	808
Customer relationships [Member]
Summary of company's intangible assets
Cost	3,530	3,530
Accumulated Amortization	(2,090)	(1,999)
Net Carrying Amount	1,440	1,531
Non-competition agreements [Member]
Summary of company's intangible assets
Cost	1,260	1,260
Accumulated Amortization	(1,025)	(962)
Net Carrying Amount	235	298
Tradenames [Member]
Summary of company's intangible assets
Cost	590	590
Accumulated Amortization	(493)	(467)
Net Carrying Amount	$ 97	$ 123

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Customer Concentration (Details Textual)	3 Months Ended
	Mar. 31, 2012 customer	Mar. 31, 2011 customer
Customer Concentration (Textual) [Abstract]
Concentration risk number of customer	0	0
Total revenue, accounted for single client	More than 10%	More than 10%
Percentage of trading volumes by single client	14.30%	15.70%

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Consolidated Statements of Financial Condition (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 119,809	$ 169,620
Securities available-for-sale	60,086	78,110
Accounts receivable, net of allowance of $402 and $1,086 as of March 31, 2012 and December 31, 2011, respectively	33,039	36,170
Deferred tax assets, net	5,684	8,089
Goodwill and intangible assets, net of accumulated amortization	34,189	34,544
Capitalized software, furniture, equipment and leasehold improvements, net of accumulated depreciation and amortization	14,875	14,460
Prepaid expenses and other assets	6,828	8,465
Total assets	274,510	349,458
Liabilities
Accrued employee compensation	5,817	19,425
Deferred revenue	5,229	5,326
Accounts payable, accrued expenses and other liabilities	14,547	12,268
Total liabilities	25,593	37,019
Commitments and Contingencies (Note 10)
Stockholders' equity
Preferred stock
Additional paid-in capital	270,590	340,716
Treasury stock - Common stock voting, at cost, 1,360,711 shares and 1,541,739 shares as of March 31, 2012 and December 31, 2011, respectively	(28,283)	(25,933)
Retained earnings (deficit)	8,708	(584)
Accumulated other comprehensive loss	(2,213)	(1,882)
Total stockholders' equity	248,917	312,439
Total liabilities and stockholders' equity	274,510	349,458
Series A Preferred Stock [Member]
Stockholders' equity
Preferred stock
Common Stock Voting
Stockholders' equity
Common stock	115	113
Total stockholders' equity	115	113
Common Stock Non-Voting
Stockholders' equity
Common stock		9
Total stockholders' equity	$ 0	$ 9

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Related Party (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Summary of balances with Stockholder Broker-Dealer Client or affiliates
Cash and cash equivalents			$ 156,982
Securities and cash provided as collateral Related Parties			550
Accounts receivable			2,255
Accounts payable			86
Summary of transactions with the Stockholder Broker-Dealer Client or its affiliates
Commissions	1,480	1,719
Technology products and services	35
Information and user access fees	24	47
Investment Income	20	25
Other Income	11	17
General and administrative	$ 7	$ 20

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Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) In Thousands	Total	Additional Paid-In Capital	Treasury Stock - Common Stock Voting	Retained Earnings (Deficit)	Accumulated Other Comprehensive Loss	Common Stock Voting	Common Stock Non-Voting
Balance at Dec. 31, 2011	$ 312,439	$ 340,716	$ (25,933)	$ (584)	$ (1,882)	$ 113	$ 9
Net income	13,493			13,493
Cumulative translation adjustment and foreign currency exchange hedge, net of tax	(132)				(132)
Unrealized net gain on securities available-for-sale, net of taxes	(199)				(199)
Stock-based compensation	1,962	1,962
Exercise of stock options	326	326
Withholding tax payments on restricted stock vesting	(5,818)	(5,818)
Excess tax benefits from stock-based compensation	2,163,000	2,163
Conversion of common stock non-voting to common stock voting		(15,878)	15,878			2	(2)
Repurchases of common stock	(71,116)	(52,881)	(18,228)				(7)
Cash dividend on common stock	(4,201)			(4,201)
Balance at Mar. 31, 2012	$ 248,917	$ 270,590	$ (28,283)	$ 8,708	$ (2,213)	$ 115	$ 0

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Fair Value Measurements (Details 1) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of the foreign currency forward contract
Notional value	$ 28,780	$ 28,671
Fair value of notional	29,091	28,516
Gross and net fair value (liability) asset	$ (311)	$ 155

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Net Capital Requirements and Customer Protection Requirements (Tables)

3 Months Ended

Mar. 31, 2012

Net Capital Requirements and Customer Protection Requirements [Abstract]

Net capital requirements and customer protection requirements

	MarketAxess Corporation		MarketAxess Europe Limited		MarketAxess Canada Limited
	(In thousands)
Net capital	$	62,641	$	28,967	$	414
Minimum net capital required		1,636		3,276		276
Excess net capital	$	61,005	$	25,691	$	138

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Fair Value Measurements (Details 2) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Summary of the Company's securities available-for-sale
Amortized cost	$ 58,780	$ 76,473
Gross unrealized gains	1,308	1,645
Gross unrealized losses	(2)	(8)
Total securities available-for-sale	60,086	78,110
U.S. government obligations [Member]
Summary of the Company's securities available-for-sale
Amortized cost	40,275	53,832
Gross unrealized gains	1,294	1,628
Total securities available-for-sale	41,569	55,460
Municipal securities [Member]
Summary of the Company's securities available-for-sale
Amortized cost	16,473	20,613
Gross unrealized gains	6	7
Gross unrealized losses	(2)	(8)
Total securities available-for-sale	16,477	20,612
Corporate bonds [Member]
Summary of the Company's securities available-for-sale
Amortized cost	2,032	2,028
Gross unrealized gains	8	10
Total securities available-for-sale	$ 2,040	$ 2,038

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Goodwill and Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets [Abstract]

Summary of company's intangible assets

	March 31, 2012							December 31, 2011
	Cost		Accumulated Amortization			Net Carrying Amount		Cost		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Technology	$	4,010	$	(3,377	)	$	633	$	4,010	$	(3,202	)	$	808
Customer relationships		3,530		(2,090	)		1,440		3,530		(1,999	)		1,531
Non-competition agreements		1,260		(1,025	)		235		1,260		(962	)		298
Tradenames		590		(493	)		97		590		(467	)		123
Total	$	9,390	$	(6,985	)	$	2,405	$	9,390	$	(6,630	)	$	2,760

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Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Cash flows from operating activities
Net income	$ 13,493	$ 10,780
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	1,854	1,562
Stock-based compensation expense	1,962	2,290
Deferred taxes	2,623	4,030
Provision for bad debts	354	(64)
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable	2,777	(4,318)
Decrease (Increase) in prepaid expenses and other assets	1,665	(898)
(Decrease) in accrued employee compensation	(13,608)	(11,819)
(Decrease) increase in deferred revenue	(97)	108
Increase (decrease) in accounts payable, accrued expenses and other liabilities	2,351	(605)
Net cash provided by operating activities	13,374	1,066
Securities available-for-sale:
Proceeds from sales	13,577
Proceeds from maturities	7,962	4,331
Purchases	(3,714)	(11,625)
Securities and cash provided as collateral	(28)	(28)
Purchases of furniture, equipment and leasehold improvements	(607)	(498)
Capitalization of software development costs	(1,298)	(842)
Net cash provided by (used in) investing activities	15,892	(8,662)
Cash flows from financing activities
Cash dividend on common stock	(4,201)	(3,388)
Exercise of stock options	326	4,608
Withholding tax payments on restricted stock vesting	(5,818)	(4,417)
Excess tax benefits from stock-based compensation	2,163	2,829
Repurchase of common stock	(71,116)
Other	(72)	(68)
Net cash (used in) financing activities	(78,718)	(436)
Effect of exchange rate changes on cash and cash equivalents	(359)	(395)
Cash and cash equivalents
Net (decrease) for the period	(49,811)	(8,427)
Beginning of period	169,620	124,994
End of period	119,809	116,567
Cash paid during the year:
Cash paid for income taxes	988	300
Non-cash activity:
Conversion of Series B Preferred Stock to common stock		30,315
Conversion of common stock non-voting to common stock voting	$ 15,880

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Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Allowance for accounts receivable	$ 402	$ 1,086
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	4,855,000	4,855,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Treasury stock, shares	1,360,711	1,541,739
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
Preferred stock, shares outstanding
Common Stock Voting
Common stock, par value	$ 0.003	$ 0.003
Common stock, shares authorized	110,000,000	110,000,000
Common stock, shares issued	37,859,623	37,725,394
Common stock, shares outstanding	36,498,912	36,183,655
Common Stock Non-Voting
Common stock, par value	$ 0.003	$ 0.003
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued
Common stock, shares outstanding	2,585,654	2,585,654

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2012

Commitments and Contingencies [Abstract]

Commitments and Contingencies

10. Commitments and Contingencies

The Company leases office space and equipment under non-cancelable lease agreements expiring at various dates through 2022. Office space leases are subject to escalation based on certain costs incurred by the landlord. Minimum rental commitments as of March 31, 2012 under such operating and capital leases were as follows:

Year Ending March 31,	Operating Leases		Capital Leases
	(In thousands)
Remainder of 2012	$	1,358	$	252
2013		1,794		322
2014		1,760		42
2015		2,022		—
2016		2,035		—
2017 and thereafter		10,189		—
Minimum lease payments		19,158		616
Less amount representing interest		—		40
	$	19,158	$	576

Rental expense was $0.7 million and $0.6 million for the three months ended March 31, 2012 and 2011, respectively, and is included in occupancy expense in the Consolidated Statements of Operations. Rental expense has been recorded based on the total minimum lease payments after giving effect to rent abatement and concessions, which are being amortized on a straight-line basis over the life of the lease. The Company is contingently obligated for standby letters of credit amounting to $1.7 million that were issued to landlords for office space.

In 2008, the Company assigned the lease agreement on a leased property to a third party. The Company is contingently liable should the assignee default on future lease obligations through the November 2015 lease termination date. The aggregate amount of future lease obligations under this arrangement was $1.4 million as of March 31, 2012.

The Company, through two regulated subsidiaries, executes certain bond transactions between and among institutional investor and broker-dealer clients on a riskless principal basis by serving as counterparty to both the buyer and the seller in matching back-to-back trades, which are then settled through a third-party clearing organization. The Company acts as intermediary on a riskless principal basis in these bond transactions by serving as counterparty to the two clients involved. Settlement typically occurs within one to three trading days after the trade date. Cash settlement of the transaction occurs upon receipt or delivery of the underlying instrument that was traded. Under securities clearing agreements with the independent third party, the Company maintains a collateral deposit with the clearing broker in the form of cash. As of March 31, 2012, the amount of the collateral deposit included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition was $0.9 million. The Company is exposed to credit risk in the event a counterparty does not fulfill its obligation to complete a transaction. Pursuant to the terms of the securities clearing agreements between the Company and the independent clearing broker, the clearing broker has the right to charge the Company for losses resulting from a counterparty’s failure to fulfill its contractual obligations. The losses are not capped at a maximum amount and apply to all trades executed through the clearing broker. At March 31, 2012, the Company had not recorded any liabilities with regard to this right.

In the normal course of business, the Company enters into contracts that contain a variety of representations, warranties and general indemnifications. 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.

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Document and Entity Information	3 Months Ended
	Mar. 31, 2012	Apr. 25, 2012
Document and Entity Information [Abstract]
Entity Registrant Name	MARKETAXESS HOLDINGS INC
Entity Central Index Key	0001278021
Document Type	10-Q
Document Period End Date	Mar. 31, 2012
Amendment Flag	true
Amendment Description	EXPLANATORY NOTE - This Amendment No. 1 to the Quarterly Report on Form 10-Q/A of MARKETAXESS HOLDINGS INC (the "Company") for the quarterly period ended March 31, 2012 is being filed solely to furnish the XBRL exhibits noted in the Exhibit Index hereto as furnished, not filed, herewith, which were incomplete in the initial filing of the Company's Quarterly Report on Form 10-Q on April 26, 2012 (the "Original Filing"). This amendment does not otherwise change or update the disclosure set forth in the Original Filing or otherwise reflect events occurring after the date thereof.
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		36,498,912

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Customer Concentration

3 Months Ended

Mar. 31, 2012

Customer Concentration [Abstract]

Customer Concentration

11. Customer Concentration

During both the three months ended March 31, 2012 and 2011, no single client accounted for more than 10% of total revenue. One client accounted for 14.3% and 15.7% of trading volumes during the three months ended March 31, 2012 and 2011, respectively.

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Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Revenues
Commissions	$ 44,902	$ 37,785
Technology products and services	2,908	3,108
Information and user access fees	1,871	1,689
Investment income	303	299
Other	751	728
Total revenues	50,735	43,609
Expenses
Employee compensation and benefits	15,841	16,268
Depreciation and amortization	1,854	1,562
Technology and communications	2,955	2,500
Professional and consulting fees	3,024	2,872
Occupancy	759	766
Marketing and advertising	1,447	974
General and administrative	2,107	1,001
Total expenses	27,987	25,943
Income before income taxes	22,748	17,666
Provision for income taxes	9,255	6,886
Net income	$ 13,493	$ 10,780
Net income per common share
Basic	$ 0.37	$ 0.30
Diluted	$ 0.35	$ 0.27
Cash dividends declared per common share	$ 0.11	$ 0.09
Weighted average shares outstanding
Basic	36,934	36,507
Diluted	38,695	39,301

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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2012

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets

5. Goodwill and Intangible Assets

Goodwill was $31.8 million as of both March 31, 2012 and December 31, 2011. Intangible assets that are subject to amortization, including the related accumulated amortization, are comprised of the following:

	March 31, 2012							December 31, 2011
	Cost		Accumulated Amortization			Net Carrying Amount		Cost		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Technology	$	4,010	$	(3,377	)	$	633	$	4,010	$	(3,202	)	$	808
Customer relationships		3,530		(2,090	)		1,440		3,530		(1,999	)		1,531
Non-competition agreements		1,260		(1,025	)		235		1,260		(962	)		298
Tradenames		590		(493	)		97		590		(467	)		123
Total	$	9,390	$	(6,985	)	$	2,405	$	9,390	$	(6,630	)	$	2,760

Amortization expense associated with identifiable intangible assets was $0.4 million for both the three months ended March 31, 2012 and 2011. Estimated total amortization expense is $1.4 million for 2012, $0.5 million for 2013, $0.3 million for 2014 and $0.2 million for both 2015 and 2016.

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Fair Value Measurements

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [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 March 31, 2012
Money market funds	$	96,350	$	—		$	—	$	96,350
Securities available-for-sale
U.S. government obligations		—		41,569			—		41,569
Municipal securities		—		16,477			—		16,477
Corporate bonds		—		2,040			—		2,040
Foreign currency forward contract		—		(311	)		—		(311	)
	$	96,350	$	59,775		$	—	$	156,125
As of December 31, 2011
Money market funds	$	111,256	$	—		$	—	$	111,256
Securities available-for-sale
U.S. government obligations		—		55,460			—		55,460
Municipal securities		—		20,612			—		20,612
Corporate bonds		—		2,038			—		2,038
Foreign currency forward contract		—		155			—		155
	$	111,256	$	78,265		$	—	$	189,521

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 contract is classified within Level 2 as the valuation inputs are based on quoted market prices. There were no financial assets classified within Level 3 during 2012 and 2011.

The Company enters into foreign currency forward contracts to hedge the exposure to variability in foreign currency cash flows resulting from the net investment in the Company’s U.K. subsidiary. The Company assesses each foreign currency forward contract to ensure that it is highly effective at reducing the exposure being hedged. The Company designates each foreign currency forward contract as a hedge, assesses the risk management objective and strategy, including identification of the hedging instrument, the hedged item and the risk exposure and how effectiveness is to be assessed prospectively and retrospectively. These hedges are for a one-month period and are used to limit exposure to foreign currency exchange rate fluctuations. The gross and net fair value liability of $0.3 million as of March 31, 2012 is included in accounts payable and the gross and net fair value asset of $0.2 million as of December 31, 2011 is included in other assets in the Consolidated Statements of Financial Condition. Gains or losses on foreign currency forward contracts designated as hedges are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. A summary of the foreign currency forward contracts is as follows:

	As of
	March 31, 2012			December 31, 2011
	(In thousands)
Notional value	$	28,780		$	28,671
Fair value of notional		29,091			28,516
Gross and net fair value (liability) asset	$	(311	)	$	155

The following is a summary of the Company’s securities available-for-sale:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
	(In thousands)
As of March 31, 2012
U.S. government obligations	$	40,275	$	1,294	$	—		$	41,569
Municipal securities		16,473		6		(2	)		16,477
Corporate bonds		2,032		8		—			2,040
Total securities available-for-sale	$	58,780	$	1,308	$	(2	)	$	60,086
As of December 31, 2011
U.S. government obligations	$	53,832	$	1,628	$	—		$	55,460
Municipal securities		20,613		7		(8	)		20,612
Corporate bonds		2,028		10		—			2,038
Total securities available-for-sale	$	76,473	$	1,645	$	(8	)	$	78,110

The following table summarizes the contractual maturities of securities available-for-sale:

	As of
	March 31, 2012		December 31, 2011
	(In thousands)
Less than one year	$	13,377	$	31,554
Due in 1 - 5 years		46,709		46,556
Total securities available-for-sale	$	60,086	$	78,110

Proceeds from the sales and maturities of securities available-for-sale during the three months ended March 31, 2012 and 2011 were $21.5 million and $4.3 million, respectively.

The following table provides fair values and unrealized losses on securities available-for-sale and by the aging of the securities’ continuous unrealized loss position:

	Less than Twelve Months					Twelve Months or More				Total
	Estimated fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses
	(In thousands)
As of March 31, 2012
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		5,435		(2	)		—		—		5,435		(2	)
Corporate bonds		—		—			—		—		—		—
Total	$	5,435	$	(2	)	$	—	$	—	$	5,435	$	(2	)
As of December 31, 2011
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		9,529		(8	)		—		—		9,529		(8	)
Corporate bonds		—		—			—		—		—		—
Total	$	9,529	$	(8	)	$	—	$	—	$	9,529	$	(8	)

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2012

Fair Value Measurements [Abstract]

Valuation of the company's assets 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 March 31, 2012
Money market funds	$	96,350	$	—		$	—	$	96,350
Securities available-for-sale
U.S. government obligations		—		41,569			—		41,569
Municipal securities		—		16,477			—		16,477
Corporate bonds		—		2,040			—		2,040
Foreign currency forward contract		—		(311	)		—		(311	)
	$	96,350	$	59,775		$	—	$	156,125
As of December 31, 2011
Money market funds	$	111,256	$	—		$	—	$	111,256
Securities available-for-sale
U.S. government obligations		—		55,460			—		55,460
Municipal securities		—		20,612			—		20,612
Corporate bonds		—		2,038			—		2,038
Foreign currency forward contract		—		155			—		155
	$	111,256	$	78,265		$	—	$	189,521

Summary of the foreign currency forward contract

	As of
	March 31, 2012			December 31, 2011
	(In thousands)
Notional value	$	28,780		$	28,671
Fair value of notional		29,091			28,516
Gross and net fair value (liability) asset	$	(311	)	$	155

Summary of the company's securities available-for-sale

The following is a summary of the Company’s securities available-for-sale:

	Amortized cost		Gross unrealized gains		Gross unrealized losses			Estimated fair value
	(In thousands)
As of March 31, 2012
U.S. government obligations	$	40,275	$	1,294	$	—		$	41,569
Municipal securities		16,473		6		(2	)		16,477
Corporate bonds		2,032		8		—			2,040
Total securities available-for-sale	$	58,780	$	1,308	$	(2	)	$	60,086
As of December 31, 2011
U.S. government obligations	$	53,832	$	1,628	$	—		$	55,460
Municipal securities		20,613		7		(8	)		20,612
Corporate bonds		2,028		10		—			2,038
Total securities available-for-sale	$	76,473	$	1,645	$	(8	)	$	78,110

Summary of contractual maturities of securities available-for-sale

The following table summarizes the contractual maturities of securities available-for-sale:

	As of
	March 31, 2012		December 31, 2011
	(In thousands)
Less than one year	$	13,377	$	31,554
Due in 1 - 5 years		46,709		46,556
Total securities available-for-sale	$	60,086	$	78,110

Fair values and unrealized losses on securities available-for-sale

The following table provides fair values and unrealized losses on securities available-for-sale and by the aging of the securities’ continuous unrealized loss position:

	Less than Twelve Months					Twelve Months or More				Total
	Estimated fair value		Gross unrealized losses			Estimated fair value		Gross unrealized losses		Estimated fair value		Gross unrealized losses
	(In thousands)
As of March 31, 2012
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		5,435		(2	)		—		—		5,435		(2	)
Corporate bonds		—		—			—		—		—		—
Total	$	5,435	$	(2	)	$	—	$	—	$	5,435	$	(2	)
As of December 31, 2011
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Municipal securities		9,529		(8	)		—		—		9,529		(8	)
Corporate bonds		—		—			—		—		—		—
Total	$	9,529	$	(8	)	$	—	$	—	$	9,529	$	(8	)

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Series B Preferred Stock Conversion

3 Months Ended

Mar. 31, 2012

Series B Preferred Stock Conversion [Abstract]

Series B Preferred Stock Conversion

12. Series B Preferred Stock Conversion

In 2008, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with two funds managed by Technology Crossover Ventures (the “Purchasers”), pursuant to which the Company sold to the Purchasers (i) 35,000 shares of the Company’s Series B Preferred Stock, which shares were convertible into an aggregate of 3,500,000 shares of common stock, and (ii) warrants (the “Warrants” and, together with the Series B Preferred Stock, the “Securities”) to purchase an aggregate of 700,000 shares of common stock at an exercise price of $10.00 per share, for an aggregate purchase price of $35.0 million. The net proceeds, after the placement agent fee and legal fees, were $33.5 million. The Warrants were exercisable for cash or on a net exercise basis. The Warrants were to expire on the tenth anniversary of the date they were first issued and were subject to customary anti-dilution adjustments in the event of stock splits, reverse stock splits, stock dividends and similar transactions.

The shares of Series B Preferred Stock were convertible at any time by the holders thereof at a conversion price of $10.00 per share, subject to certain anti-dilution adjustments and also were subject to automatic conversion into shares of common stock if the closing price of the common stock was at least $17.50 on each trading day for a period of 65 consecutive trading days. On January 24, 2011, all of the shares of the Series B Preferred Stock were mandatorily and automatically converted into 3,499,999 shares of common stock. In November 2011, a total of 455,465 shares of common stock were issued upon the exercise of the Warrants on a net exercise basis.

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation Plans [Abstract]

Stock-Based Compensation Plans

8. Stock-Based Compensation Plans

Stock-based compensation expense for the three months ended March 31, 2012 and 2011 was as follows:

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Employee:
Restricted stock and performance shares	$	1,668	$	1,822
Stock options		145		295
		1,813		2,117
Non-employee directors:
Restricted stock		149		173
Total stock-based compensation	$	1,962	$	2,290

The Company records stock-based compensation for employees in employee compensation and benefits and for non-employee directors in general and administrative expenses in the Consolidated Statements of Operations.

During the three months ended March 31, 2012, the Company granted to employees a total of 183,988 shares of restricted stock or restricted stock units, performance-based shares with an expected pay-out at target of 44,843 shares of common stock and 375 options to purchase shares of common stock. The fair value of the restricted stock and performance-based share awards was based on a weighted-average grant date fair value per share of $31.03 and $30.64, respectively. Based on the Black-Scholes option pricing model, the weighted-average fair value for each option granted was $11.99 per share. As of March 31, 2012, the total unrecognized compensation costs related to non-vested awards was $17.3 million. That cost is expected to be recognized over a weighted-average period of 2.6 years.

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Income Taxes

3 Months Ended

Mar. 31, 2012

Income Taxes [Abstract]

Income Taxes

6. Income Taxes

The provision for income taxes consists of the following:

	Three Months Ended March 31,
	2012			2011
	(In thousands)
Current:
Federal	$	3,565		$	—
State and local		1,170			246
Foreign		(90	)		(206	)
Total current provision		4,645			40
Deferred:
Federal		3,545			4,460
State and local		872			1,784
Foreign		193			602
Total deferred provision		4,610			6,846
Provision for income taxes	$	9,255		$	6,886

The following is a summary of the Company’s net deferred tax assets:

	As of
	March 31, 2012			December 31, 2011
	(In thousands)
Deferred tax assets and liabilities	$	5,977		$	8,376
Valuation allowance		(293	)		(287	)
Deferred tax assets, net	$	5,684		$	8,089

Through December 31, 2010, the tax benefit on a portion of the tax deduction generated on the exercise of warrants in prior years had not yet been recorded. During the first quarter of 2011, the Company recognized the remaining portion of the tax benefit, amounting to $4.2 million, as an increase to additional paid-in-capital due to the expected utilization of the related tax loss carryforwards of $10.4 million.

The Company or one of its subsidiaries files U.S. federal, state and foreign income tax returns. No income tax returns have been audited, with the exception of New York city (through 2003) and state (through 2006) and Connecticut state (through 2003) tax returns. An examination of the Company’s New York state franchise tax returns for 2007 through 2009 is currently underway. The Company cannot estimate when the examination will conclude.

During the first quarter of 2011, the Company reached a settlement for a reimbursement claim on previously paid sales tax amounting to approximately $0.7 million. This amount has been reflected as a reduction of general and administrative expenses in the Consolidated Statements of Operations.

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Related Party

3 Months Ended

Mar. 31, 2012

Related Party [Abstract]

Related Party

7. Related Party

On February 28, 2012, the Company completed a registered underwritten secondary public offering of 3,597,333 shares of common stock held by the Stockholder Broker-Dealer Client. The Company did not receive any of the proceeds of the offering. In addition, the Company repurchased 1,821,730 shares of non-voting common stock held by the Stockholder Broker-Dealer Client (see Note 13, “Share Repurchases”). After February 28, 2012, the Stockholder Broker-Dealer Client no longer holds shares of common stock in the Company and is not considered a related party.

The Company generates commissions, technology products and services revenues, information and user access fees, investment income and other income and related accounts receivable balances from the Stockholder Broker-Dealer Client or its affiliates. In addition, the Stockholder Broker-Dealer Client acts in a cash management capacity for the Company. The Company also maintains an account with and paid commissions to the Stockholder Broker-Dealer Client in connection with the Company’s share repurchase program. The Company also incurs bank fees in connection with these arrangements. As of the dates and for the periods indicated below, the Company had the following balances and transactions with the Stockholder Broker-Dealer Client or its affiliates:

	As of
	December 31, 2011
	(In thousands)
Cash and cash equivalents	$	156,982
Securities and cash provided as collateral		550
Accounts receivable		2,255
Accounts payable		86

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Commissions	$	1,480	$	1,719
Technology products and services		35		—
Information and user access fees		24		47
Investment income		20		25
Other income		11		17
General and administrative		7		20

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Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share

9. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per common share.

	Three Months Ended March 31,
	2012		2011
	(In thousands, except per share amounts)
Net income	$	13,493	$	10,780
Common stock - voting		35,276		33,921
Common stock - non-voting		1,658		2,586
Basic weighted average shares outstanding		36,934		36,507
Basic earnings per share	$	0.37	$	0.30
Weight average shares outstanding		36,934		36,507
Effect of dilutive shares:
Stock options and restricted stock		1,761		2,422
Warrants		—		372
Diluted weighted average shares outstanding		38,695		39,301
Diluted earnings per share	$	0.35	$	0.27

Stock options, restricted stock and warrants totaling 0.3 million shares for both the three months ended March 31, 2012 and 2011 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.

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Fair Value Measurements (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Valuation of the company's assets measured at fair value
Money market funds	$ 96,350	$ 111,256
Securities available-for-sale	60,086	78,110
Foreign currency forward contract	(311)	155
Assets Fair Value Total	156,125	189,521
Level 1 [Member]
Valuation of the company's assets measured at fair value
Money market funds	96,350	111,256
Assets Fair Value Total	96,350	111,256
Level 2 [Member]
Valuation of the company's assets measured at fair value
Foreign currency forward contract	(311)	155
Assets Fair Value Total	59,775	78,265
Level 3 [Member]
Valuation of the company's assets measured at fair value
Money market funds
Foreign currency forward contract
Assets Fair Value Total
U.S. government obligations [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	41,569	55,460
U.S. government obligations [Member] | Level 2 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	41,569	55,460
U.S. government obligations [Member] | Level 3 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale
Municipal securities [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	16,477	20,612
Municipal securities [Member] | Level 2 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	16,477	20,612
Municipal securities [Member] | Level 3 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale
Corporate bonds [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	2,040	2,038
Corporate bonds [Member] | Level 2 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale	2,040	2,038
Corporate bonds [Member] | Level 3 [Member]
Valuation of the company's assets measured at fair value
Securities available-for-sale

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Commitments and Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012
Summary of minimum rental commitments under operating and capital leases
Remainder of 2012, Operating Lease	$ 1,358
2013, Operating Lease	1,794
2014, Operating Lease	1,760
2015, Operating Lease	2,022
2016, Operating Lease	2,035
2017 and thereafter, Operating Lease	10,189
Minimum lease payments, Operating Lease	19,158
Less amount representing interest, Operating Lease
Net Minimum Payments, Operating Lease	19,158
Remainder of 2012, Capital Lease	252
2013, Capital Lease	322
2014, Capital Lease	42
2015, Capital Lease
2016, Capital Lease
2017 and thereafter, Capital Lease
Minimum lease payments, Capital Lease	616
Less amount representing interest	40
Net Minimum Payments, Capital Lease	$ 576

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Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2012

Significant 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. These consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011. The consolidated financial information as of December 31, 2011 has been derived from audited financial statements not included herein.

These unaudited consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) with respect to Form 10-Q and reflect all adjustments that, in the opinion of management, are normal and recurring, and that are necessary for a fair statement of the results for the interim periods presented. In accordance with such rules and regulations, certain disclosures that are normally included in annual financial statements have been omitted. Interim period operating results may not be indicative of the operating results for a full year.

Cash and cash equivalents

Cash and Cash Equivalents

Cash and cash equivalents includes cash and money market instruments that are primarily maintained at one major global bank. Given this concentration, the Company is exposed to certain credit risk. The Company defines cash equivalents as short-term interest-bearing investments with maturities at the time of purchase of three months or less.

Securities available-for-sale

Securities Available-for-Sale

The Company classifies its marketable securities as available-for-sale securities. Unrealized marketable securities gains and losses, net of taxes, are reflected as a net amount under the caption of accumulated other comprehensive loss in the Consolidated Statements of Financial Condition. Realized gains and losses are recorded in the Consolidated Statements of Operations in other revenues. For the purpose of computing realized gains and losses, cost is determined on a specific identification basis.

The Company assesses whether an other-than-temporary impairment loss on the investments has occurred due to declines in fair value or other market conditions. The portion of an other-than-temporary impairment related to credit loss is recorded as a charge in the Consolidated Statements of Operations. The remainder is recognized in other comprehensive loss if the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. No charges for other-than-temporary losses were recorded during the three months ended March 31, 2012 and 2011.

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, securities available-for-sale portfolio and one foreign currency forward contract.

Allowance for doubtful accounts

Allowance for Doubtful Accounts

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 doubtful accounts is based upon the historical collection experience and specific collection issues that have been identified. Additions to the allowance for doubtful accounts are charged to bad debt expense, which is included in general and administrative expense in the Company’s Consolidated Statements of Operations.

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. Leasehold improvements are stated at cost and are amortized using the straight-line method 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 at the point at which the conceptual formulation, design and testing of possible software project alternatives have been completed. The Company capitalizes employee compensation and related benefits and third party consulting costs incurred during the preliminary software project stage. 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.

Cash provided as collateral

Cash Provided as Collateral

Cash is provided as collateral for electronic bank settlements and broker-dealer clearance accounts. Cash provided as collateral is included in prepaid expenses and other assets in the Consolidated Statements of Financial Condition.

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 general and administrative expense in the Consolidated Statements of Operations.

The Company enters into foreign currency forward contracts to hedge its net investment in its U.K. subsidiary. Gains and losses on these transactions are included in accumulated other comprehensive loss in the Consolidated Statements of Financial Condition.

Revenue recognition

Revenue Recognition

The majority of the Company’s revenues are derived from commissions for trades executed on its platform and distribution fees that are billed to its broker-dealer clients on a monthly basis. The Company also derives revenues from technology products and services, information and user access fees, investment income and other income.

Commission revenue. Commissions are generally calculated as a percentage of the notional dollar volume of bonds traded on the platform and vary based on the type and maturity of the bond traded. Under the Company’s transaction fee plans, bonds that are more actively traded or that have shorter maturities are generally charged lower commissions, while bonds that are less actively traded or that have longer maturities generally command higher commissions. For trades that the Company executes between and among institutional investor and broker-dealer clients on a riskless principal basis by serving as counterparty to both the buyer and the seller, the Company earns the commission through the difference in price between the two back-to-back trades. Fee programs for certain products include distribution fees which are recognized monthly.

Technology products and services. The Company generates revenues from technology software licenses, maintenance and support services (referred to as post-contract technical support or “PCS”) and professional consulting services. Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collection is considered probable. The Company generally sells software licenses and PCS together as part of multiple-element arrangements. The Company also enters into contracts for technology integration consulting services unrelated to any software product.

For arrangements that include multiple elements, generally software licenses and PCS, the Company allocates and defers revenue for the undelivered items based on vendor specific objective evidence (“VSOE”) of the fair value of the undelivered elements and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered items as license revenue. The Company’s VSOE of each element is based on historical evidence of stand-alone sales of these elements to third parties or the stated renewal rate for the undelivered elements. When VSOE does not exist for undelivered items, the entire arrangement fee is recognized ratably over the performance period. For PCS, the term is typically one year and revenue is recognized over the duration of the arrangement on a straight-line basis.

Professional consulting services are generally separately priced and are typically not essential to the functionality of the Company’s software products. Revenues from these services are recognized separately from the license fee. Generally, revenue from time-and-materials consulting contracts is recognized as services are performed.

Revenues from contracts for technology integration consulting services are recognized on the percentage-of-completion method. Percentage-of-completion accounting involves calculating the percentage of services provided during the reporting period compared to the total estimated services to be provided over the duration of the contract. If estimates indicate that a contract loss will occur, a loss provision is recorded in the period in which the loss first becomes probable and reasonably estimable. Contract losses are determined to be the amount by which the estimated direct and indirect costs of the contract exceed the estimated total revenues that will be generated by the contract. There were no contract loss provisions recorded as of March 31, 2012 and 2011. Revenues recognized in excess of billings are recorded as unbilled services within other assets. Billings in excess of revenues recognized are recorded as deferred revenues until revenue recognition criteria are met.

Initial set-up fees. The Company enters into agreements with its broker-dealer clients pursuant to which the Company provides access to its platform through a non-exclusive and non-transferable license. Broker-dealer clients may pay an initial set-up fee, which is typically due and payable upon execution of the broker-dealer agreement. The initial set-up fee, if any, varies by agreement. Revenue is recognized over the initial term of the agreement, which is generally two years.

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.

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. The Company recognizes interest and penalties related to unrecognized tax benefits in general and administrative expenses in the Consolidated Statements of Operations.

Business combinations, goodwill and intangible assets

Business Combinations, Goodwill and Intangible Assets

Business acquisitions 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 is judgmental in nature and often involves the use of significant estimates and assumptions, including assumptions with respect to future cash flows, discount rates, growth rates and asset lives.

An impairment review of goodwill is performed on an annual basis and more frequently if circumstances change. Intangible assets with definite lives, including purchased technologies, customer relationships and other intangible assets, are amortized on a straight-line basis over their estimated useful lives, ranging from five to ten years. Intangible assets are assessed for impairment when events or circumstances indicate the existence of a possible impairment.

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 U.S. generally accepted accounting principles 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.

Recent accounting pronouncements

Recent Accounting Pronouncements

In 2011, the Financial Accounting Standards Board (“FASB”) issued new accounting guidance that simplifies goodwill impairment tests. The new guidance states that a “qualitative” assessment may be performed to determine whether further impairment testing is necessary. This accounting standard is effective for fiscal years beginning on or after December 15, 2011. The Company adopted the new guidance effective January 1, 2012 and there was no material impact on the Company’s Consolidated Financial Statements.

In 2011, the FASB issued new disclosure guidance related to the presentation of the Statement of Comprehensive Income. This guidance eliminates the current option to report other comprehensive income and its components in the Consolidated Statement of Changes in Stockholders’ Equity. The requirement to present reclassification adjustments out of accumulated other comprehensive income on the face of the Consolidated Statement of Operations has been deferred. This accounting standard is effective for fiscal years beginning on or after December 15, 2011. The Company adopted the new guidance effective January 1, 2012 and has presented a separate Statement of Comprehensive Income in the Company’s Consolidated Financial Statements.

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Related Party (Tables)

3 Months Ended

Mar. 31, 2012

Related Party [Abstract]

Summary of balances and transactions with the Stockholder Broker-Dealer Client or affiliates

	As of
	December 31, 2011
	(In thousands)
Cash and cash equivalents	$	156,982
Securities and cash provided as collateral		550
Accounts receivable		2,255
Accounts payable		86

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Commissions	$	1,480	$	1,719
Technology products and services		35		—
Information and user access fees		24		47
Investment income		20		25
Other income		11		17
General and administrative		7		20

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Computation of basic and diluted earnings per common share
Net income	$ 13,493	$ 10,780
Basic weighted average shares outstanding	36,934	36,507
Basic earnings per share	$ 0.37	$ 0.30
Effect of dilutive shares:
Stock options and restricted stock	1,761	2,422
Warrants		372
Diluted weighted average shares outstanding	38,695	39,301
Diluted earnings per share	$ 0.35	$ 0.27
Common Stock Voting [Member]
Computation of basic and diluted earnings per common share
Basic weighted average shares outstanding	35,276	33,921
Common Stock Non-Voting [Member]
Computation of basic and diluted earnings per common share
Basic weighted average shares outstanding	1,658	2,586

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Goodwill and Intangible Assets (Details Textual) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011	Dec. 31, 2011
Goodwill and Intangible Assets (Textual) [Abstract]
Goodwill	$ 31.8		$ 31.8
Amortization expense associated with identifiable intangible assets	0.4	0.4
Estimated total amortization expense 2012	1.4
Estimated total amortization expense 2013	0.5
Estimated total amortization expense 2014	0.3
Estimated total amortization expense 2015	0.2
Estimated total amortization expense 2016	$ 0.2

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Consolidated Statement of Comprehensive Income (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2012	Mar. 31, 2011
Consolidated Statement of Comprehensive Income [Abstract]
Net income	$ 13,493	$ 10,780
Cumulative translation adjustment and foreign currency exchange hedge, net of tax	(132)	(238)
Unrealized net loss on securities available-for-sale, net of tax	(199)	(110)
Comprehensive Income	$ 13,162	$ 10,432

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Net Capital Requirements and Customer Protection Requirements

3 Months Ended

Mar. 31, 2012

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 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 March 31, 2012:

	MarketAxess Corporation		MarketAxess Europe Limited		MarketAxess Canada Limited
	(In thousands)
Net capital	$	62,641	$	28,967	$	414
Minimum net capital required		1,636		3,276		276
Excess net capital	$	61,005	$	25,691	$	138

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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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2012

Stock-Based Compensation Plans [Abstract]

Stock-based compensation expense

Stock-based compensation expense for the three months ended March 31, 2012 and 2011 was as follows:

	Three Months Ended March 31,
	2012		2011
	(In thousands)
Employee:
Restricted stock and performance shares	$	1,668	$	1,822
Stock options		145		295
		1,813		2,117
Non-employee directors:
Restricted stock		149		173
Total stock-based compensation	$	1,962	$	2,290

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Fair Value Measurements (Details 4) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2012	Dec. 31, 2011
Fair values and unrealized losses on securities available-for-sale
Less than Twelve Months, Estimated fair value	$ 5,435	$ 9,529
Less than Twelve Months, Gross unrealized losses	(2)	(8)
Twelve Months or More, Estimated fair value
Twelve Months or More, Gross unrealized Losses
Estimated fair value, Total	5,435	9,529
Gross unrealized losses, Total	(2)	(8)
U.S. government obligations [Member]
Fair values and unrealized losses on securities available-for-sale
Less than Twelve Months, Estimated fair value
Less than Twelve Months, Gross unrealized losses
Twelve Months or More, Estimated fair value
Twelve Months or More, Gross unrealized Losses
Estimated fair value, Total
Gross unrealized losses, Total
Municipal securities [Member]
Fair values and unrealized losses on securities available-for-sale
Less than Twelve Months, Estimated fair value	5,435	9,529
Less than Twelve Months, Gross unrealized losses	(2)	(8)
Twelve Months or More, Estimated fair value
Twelve Months or More, Gross unrealized Losses
Estimated fair value, Total	5,435	9,529
Gross unrealized losses, Total	(2)	(8)
Corporate bonds [Member]
Fair values and unrealized losses on securities available-for-sale
Less than Twelve Months, Estimated fair value
Less than Twelve Months, Gross unrealized losses
Twelve Months or More, Estimated fair value
Twelve Months or More, Gross unrealized Losses
Estimated fair value, Total
Gross unrealized losses, Total

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Share Repurchases

3 Months Ended

Mar. 31, 2012

Share Repurchases [Abstract]

Share Repurchases

13. Share Repurchases

In October 2011, the Board of Directors authorized a share repurchase program for up to $35.0 million of the Company’s common stock. As of March 31, 2012, the Company repurchased 820,894 shares of common stock at a cost of $25.2 million. Shares repurchased under the program will be held in treasury for future use.

On February 28, 2012, the Company repurchased 1,821,730 shares of the Company’s non-voting common stock from the Stockholder Broker-Dealer Client at a cost of $52.9 million. Shares repurchased from the Stockholder Broker-Dealer Client were cancelled by the Company.