Parent Company Information

12 Months Ended

Dec. 31, 2020

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Parent Company Information

19. Parent Company Information

The following tables present Parent Company–only financial information and should be read in conjunction with the consolidated financial statements of the Company.

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Financial Condition
	As of
	December 31, 2020			December 31, 2019
	(In thousands)
ASSETS
Cash and cash equivalents	$	55,747		$	48,241
Investments, at fair value		4,811			141,318
Accounts receivable		178			63
Receivable from subsidiaries		41,986			5,997
Intangible assets, net of accumulated amortization		27			30
Furniture, equipment, leasehold improvements and capitalized    software, net of accumulated depreciation and amortization		23,518			25,247
Operating lease right-of-use assets		64,460			68,559
Investments in subsidiaries		853,626			570,145
Prepaid expenses and other assets		4,591			6,978
Income and other tax receivable		9,028			3,219
Total assets	$	1,057,972		$	869,797
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accrued employee compensation	$	10,241		$	6,543
Income and other tax liabilities		3,457			—
Accounts payable, accrued expenses and other liabilities		9,341			9,254
Operating lease liabilities		79,872			83,909
Total liabilities		102,911			99,706
Stockholders' equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		123			122
Common stock non-voting		—			—
Additional paid-in capital		329,742			342,541
Treasury stock		(169,523	)		(153,388	)
Retained earnings		799,369			591,086
Accumulated other comprehensive loss		(4,650	)		(10,270	)
Total stockholders' equity		955,061			770,091
Total liabilities and stockholders' equity	$	1,057,972		$	869,797

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations and Comprehensive Income
	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Dividends from subsidiary	$	30,000		$	165,000		$	130,000
Expenses
Employee compensation and benefits		19,710			16,100			10,785
Depreciation and amortization		2,068			1,919			1,760
Technology and communications		10			13			43
Professional and consulting fees		7,332			6,523			4,932
Occupancy		162			850			7,381
General and administrative		2,551			2,252			1,513
Total expenses		31,833			27,657			26,414
Operating (loss) income		(1,833	)		137,343			103,586
Other income (expense)
Investment income		2,799			5,305			3,835
Interest expense		(805	)		—			—
Other, net		(318	)		(1,344	)		(711	)
Total other income		1,676			3,961			3,124
(Loss) income before income taxes and equity in undistributed earnings of subsidiaries		(157	)		141,304			106,710
Provision for income taxes		(23,444	)		(9,442	)		(7,350	)
Income before equity in undistributed income of subsidiaries		23,287			150,746			114,060
Equity in undistributed income of subsidiaries		276,090			54,156			58,792
Net income		299,377			204,902			172,852
Other comprehensive income (loss), net		5,620			2,124			(2,168	)
Comprehensive income	$	304,997		$	207,026		$	170,684

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2020			2019			2018
	(In thousands)
Cash flows from operating activities
Net income	$	299,377		$	204,902		$	172,852
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		2,068			1,919			1,760
Amortization of operating lease right-of-use assets		4,117			4,027			—
Stock-based compensation expense		10,834			10,547			5,801
Deferred taxes		3,644			1,255			(2,515	)
Equity in undistributed income of subsidiaries		(276,090	)		(54,156	)		(58,792	)
Other		(671	)		328			710
Changes in operating assets and liabilities:
(Increase) in accounts receivable		(115	)		(4	)		(14	)
(Increase) decrease in receivable from subsidiaries		(25,049	)		5,253			15,985
(Increase) decrease in prepaid expenses and other assets		(1,085	)		933			(782	)
(Increase) in mutual funds held in rabbi trust		(1,328	)		(1,183	)		(470	)
Increase in accrued employee compensation		3,698			876			567
(Increase) in income and other tax receivable		(1,240	)		(3,219	)		—
Increase (decrease) in income and other tax liabilities		6,676			(2,612	)		469
(Decrease) increase in accounts payable, accrued expenses and other liabilities		(442	)		(2,039	)		13,619
(Decrease) increase in operating lease liabilities		(4,055	)		1,191			—
Net cash provided by operating activities		20,339			168,018			149,190
Cash flows from investing activities
Acquisition of business, net of cash and cash equivalents acquired		—			(102,320	)		—
Available-for-sale investments
Proceeds from maturities and sales		170,657			170,936			333,791
Purchases		(32,865	)		(160,827	)		(336,533	)
Purchases of furniture, equipment and leasehold improvements		(337	)		(1,424	)		(24,786	)
Purchase of intangible asset		—			(30	)		—
Net cash provided by (used in) investing activities		137,455			(93,665	)		(27,528	)
Cash flows from financing activities
Cash dividend on common stock		(90,566	)		(76,231	)		(62,432	)
Exercise of stock options		4,007			1,207			2,973
Withholding tax payments on restricted stock vesting and stock option exercises		(42,418	)		(25,820	)		(8,043	)
Repurchases of common stock		(16,135	)		(17,256	)		(25,171	)
Proceeds from short-term borrowings		348,000			—			—
Repayments of short-term borrowings		(348,000	)		—			—
Net cash (used in) financing activities		(145,112	)		(118,100	)		(92,673	)
Effect of exchange rate changes on investments		(5,176	)		(3,852	)		4,129
Cash and cash equivalents including restricted cash
Net increase (decrease) for the period		7,506			(47,599	)		33,118
Beginning of period		48,241			95,840			62,722
End of period	$	55,747		$	48,241		$	95,840
Supplemental cash flow information:
Cash paid for income taxes	$	32,674		$	41,025		$	37,721
Cash paid for interest		805			—			—
Non-cash investing and financing activity:
Exercise of stock options - cashless	$	10,866		$	1,811		$	—
Treasury stock used for acquisition of business		—			(48,830	)		—