MarketAxess Holdings, the operator of a leading electronic trading platform for fixed-income securities, and the provider of market data and post-trade services for the global fixed-income markets, announced the results of the Trading for Trees incentive program following a record year of green bond trading volumes on the MarketAxess trading system.
2020 was the inaugural year for Trading for Trees, launched in partnership with One Tree Planted. In 2020, over 134,000 trees have been planted through the program.
Issuance of green bonds has surged in recent years, with an estimated $269 billion of newly issued green bonds in 2020. As one of the world’s largest fixed income trading platforms with an extensive global network of institutional participants, MarketAxess is aiding its clients’ sustainable investment strategies with the ability to more efficiently trade green bonds. In 2020, $27 billion in green bond trading volume was executed globally on MarketAxess, an increase of 42% from 2019. In the U.S., where public data is available, MarketAxess ranks as the largest green bond marketplace with an estimated market share of 20.3% in TRACE-reported green bond volume.
“Green Bond issuance and trading activity is accelerating as a result of rising demand from investors seeking sustainable fixed income solutions for their portfolios,” said Ashley Schulten, Head of Responsible Investing, Global Fixed Income at BlackRock. “Integrated trading platforms, like MarketAxess, are key to making sure that growing demand for qualifying green bonds continues to be met with efficiency and transparency for everyone.”
“Responsible investment is at the heart of all our activities, and we are very pleased to have contributed to the success of the "Trading for Trees" program so far,” commented Valerie Nanette-Dan, senior trader at AXA IM. “We are an active investor in green bonds, with a mandate to make investment choices that help to protect and preserve the environment. The ability to identify, negotiate and trade these bonds in an efficient and transparent electronic marketplace helps us to meet that mandate, and we hope to encourage more partners to join us in this approach.”
“We are delighted with the success of the Trading for Trees program,” said Chris Concannon, President and Chief Operating Officer at MarketAxess. “It shows that every small step we take to make trading ESG-linked instruments like green bonds easier and more effective can have a big impact in the real world. As demand for sustainable and green investment strategies increases, MarketAxess is committed to further developing the trading technologies and tools to support and incentivize them.”
The Trading for Trees incentive program continues in 2021, with 5 trees planted for every $1 million of green bond trading volume executed. In addition, MarketAxess will launch a series of events that will bring together firms most active in green bond trading on the platform. These forums will serve to draw on the expertise of traders and fund managers focused on sustainable investing to help further develop a strategic roadmap for ESG investing via the MarketAxess platform.
Source: MarketAxess
