Parent Company Information (Tables)

12 Months Ended

Dec. 31, 2019

Condensed Financial Information Of Parent Company Only Disclosure [Abstract]

Condensed Statements of Financial Condition

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Financial Condition
	As of
	December 31, 2019			December 31, 2018
	(In thousands)
ASSETS
Cash and cash equivalents	$	48,241		$	95,840
Investments, at fair value		141,318			149,266
Accounts receivable		63			59
Receivable from subsidiaries		5,997			—
Intangible assets, net of accumulated amortization		30			—
Furniture, equipment, leasehold improvements and capitalized    software, net of accumulated depreciation and amortization		25,247			25,742
Operating lease right-of-use assets		68,559			—
Investments in subsidiaries		570,145			356,363
Prepaid expenses and other assets		3,506			4,439
Deferred tax assets, net		3,472			5,039
Income and other tax receivable		3,219			—
Total assets	$	869,797		$	636,748
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accrued employee compensation	$	6,543		$	5,667
Income and other tax liabilities		—			2,612
Payable to subsidiaries		—			3
Accounts payable, accrued expenses and other liabilities		9,254			20,588
Operating lease liabilities		83,909			—
Total liabilities		99,706			28,870
Stockholders' equity
Preferred stock		—			—
Series A Preferred Stock		—			—
Common stock voting		122			122
Common stock non-voting		—			—
Additional paid-in capital		342,541			341,860
Treasury stock		(153,388	)		(184,962	)
Retained earnings		591,086			463,252
Accumulated other comprehensive loss		(10,270	)		(12,394	)
Total stockholders' equity		770,091			607,878
Total liabilities and stockholders' equity	$	869,797		$	636,748

Condensed Statements of Operations and Comprehensive Income

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Operations and Comprehensive Income
	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Dividends from subsidiary	$	165,000		$	130,000		$	120,000
Expenses
Employee compensation and benefits		16,100			10,785			11,289
Depreciation and amortization		1,919			1,760			1,971
Technology and communications		13			43			41
Professional and consulting fees		6,523			4,932			4,185
Occupancy		850			7,381			143
General and administrative		2,252			1,513			852
Total expenses		27,657			26,414			18,481
Operating income		137,343			103,586			101,519
Other income (expense)
Investment income		5,305			3,835			2,608
Other, net		(1,344	)		(711	)		(685	)
Total other income		3,961			3,124			1,923
Income before income taxes and equity in undistributed income of subsidiaries		141,304			106,710			103,442
Provision for income taxes		(9,442	)		(7,350	)		(13,935	)
Income before equity in undistributed income of subsidiaries		150,746			114,060			117,377
Equity in undistributed income of subsidiaries		54,156			58,792			30,712
Net income		204,902			172,852			148,089
Other comprehensive income (loss), net		2,124			(2,168	)		2,002
Comprehensive income	$	207,026		$	170,684		$	150,091

Condensed Statements of Cash Flows

MarketAxess Holdings Inc.
(Parent Company Only)
Condensed Statements of Cash Flows
	Year Ended December 31,
	2019			2018			2017
	(In thousands)
Cash flows from operating activities
Net income	$	204,902		$	172,852		$	148,089
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		1,919			1,760			1,971
Amortization of operating lease right-of-use assets		4,027			—			—
Stock-based compensation expense		21,800			14,257			13,071
Deferred taxes		1,255			(2,515	)		5,004
Equity in undistributed income of subsidiaries		(54,156	)		(58,792	)		(30,712	)
Other		328			710			1,581
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable		(4	)		(14	)		205
(Increase) decrease in receivable from subsidiaries		(6,000	)		7,529			17,518
Decrease (increase) in prepaid expenses and other assets		933			(782	)		687
(Increase) in mutual funds held in rabbi trust		(1,183	)		(470	)		(949	)
Increase in accrued employee compensation		876			567			607
(Increase) in income and other tax receivable		(3,219	)		—			—
(Decrease) increase in income and other tax liabilities		(2,612	)		469			(825	)
(Decrease) increase in accounts payable, accrued expenses and other liabilities		(2,039	)		13,619			(261	)
Increase in operating lease liabilities		1,191			—			—
Net cash provided by operating activities		168,018			149,190			155,986
Cash flows from investing activities
Acquisition of business, net of cash and cash equivalents acquired		(102,320	)		—			—
Repayment from subsidiary		—			—			5,000
Available-for-sale investments
Proceeds from maturities and sales		170,936			333,791			187,794
Purchases		(160,827	)		(336,533	)		(215,831	)
Purchases of furniture, equipment and leasehold improvements		(1,424	)		(24,786	)		(2,160	)
Purchase of intangible asset		(30	)		—			—
Net cash (used in) investing activities		(93,665	)		(27,528	)		(25,197	)
Cash flows from financing activities
Cash dividend on common stock		(76,231	)		(62,432	)		(48,888	)
Exercise of stock options		1,207			2,973			1,972
Withholding tax payments on restricted stock vesting and stock option exercises		(25,820	)		(8,043	)		(27,691	)
Repurchases of common stock		(17,256	)		(25,171	)		(42,461	)
Net cash (used in) financing activities		(118,100	)		(92,673	)		(117,068	)
Effect of exchange rate changes on investments		(3,852	)		4,129			(4,687	)
Cash and cash equivalents including restricted cash
Net (decrease) increase for the period		(47,599	)		33,118			9,034
Beginning of period		95,840			62,722			53,688
End of period	$	48,241		$	95,840		$	62,722
Supplemental cash flow information:
Cash paid during the year for income taxes	$	41,025		$	37,721		$	37,769
Non-cash investing and financing activity:
Treasury stock used for acquisition of business	$	(48,830	)	$	—		$	—