So pretty excited about the integration of Pragma in automation. The next piece of integration that we see playing out is the Pragma EMS solution, it is able to maintain order state and control orders and connect multiple destinations. Obviously, we’re using the various protocols within MarketAxess, but we do see an opportunity for that EMS technology to be deployed further in the market. So we see further integration of Pragma. It’s an important technology acquisition for us. And we’re actually seeing higher benefits of the synergy of that technology. We also plan on using Pragma in our dealer-to-dealer business. We think there’s interesting solutions, not only automation that we’re rolling out for dealers, but new protocols in that dealer suite of products as well, particularly around the mid-matching solutions that we see in that market.
So it’s still early days for our excitement around the Pragma acquisition, but we definitely see it becoming a more important footprint in the overall technology footprint of MarketAxess.
Michael Cyprys: Great. And just a follow-up question, if I could, on emerging markets. Great to see the renewed strength, particularly in local markets, EM, particularly in April. Just curious what you’re seeing there. Maybe you can elaborate a bit more broadly on the EM initiatives that you have and any other regions that you’re particularly more focused on? And where do you see scope for more innovation ahead in EM?
Christopher Concannon: Sure. On the EM front, pretty excited about the growth that we’ve seen in EM in Q1. Obviously, we were seeing lower volumes in 2023. And we weren’t expecting that to change, but it did change and obviously saw record volumes, record ADV and obviously, record commission revenue up almost 11% in Q1. One interesting area that we’ve seen growth, and it’s really as a result of growth of protocol, and that is our block trading ADV is up almost 34% year-over-year in the first quarter. So we’re excited about that block trading growth, certainly a predictor of hopefully further block trading growth across all our products. The other area of sizable growth was our local markets. Obviously, they are up 30% in Q1 year-over-year.
The local market is obviously the bigger market opportunity in the EM market, close to 80% of the overall volume is estimated to be within the local markets. And then areas of excitement, obviously, we’ve seen our APAC volumes grow year-over-year. APAC was up 33% in Q1 and APAC was up even further in April, almost up about 40%. Out of APAC, we’re seeing APAC as a key driver of our EM volume. Our local market volume, in particular, was up from APAC almost 60%. So that international growth and our international expansion is reaping benefits across our EM market, particularly the APAC growth rates that we were seeing in Q1, and then that continued into April.
Michael Cyprys: Great. Thank you.
Operator: Our next question comes from the line of Alex Blostein from Goldman Sachs. Please go ahead.
Alexander Blostein: Hey, good morning, guys. Thanks for taking the question. Just one for me. You spoke extensively today and just over the last couple of quarters that the path towards more of sort of bridging the gap in IG with some of the market share is likely going to come from PT and dealer initiated RFQ. Can you talk a little bit about the pricing and the fee per million in both of those? I think you kind of hit on the PT a little bit. But just how does that compare to the kind of $150, $160 that you’re running at a credit right now? And do you expect that your initiative there to put more pricing pressure on that part of the market as a whole for other competitors as well? Thanks.
Richard Schiffman: Sure, Alex, hi. It’s Rich. And yes, I did mention about the fee capture in PT being lower. With dealer business, which tends to be — it’s an Open Trading, it’s an all-to-all type of business, where we’re delivering more value, our fee capture is relatively higher there. And one of the things I should note is when we deliver liquidity to dealers, about 30% of the time, that comes from buy-side firms, not just other dealers. And that’s some of the most valuable connections that we can make and allows us to charge a relatively higher fee for that. So I think the prospects for fee capture in the dealer initiated side of the business is quite promising. We should note, and as pointed out during the prepared remarks, that we see plenty of opportunity for growth in the traditional client to dealer in comp business, leveraging Open Trading and being able to make those connections between clients directly with each other, into other dealers and things.
And that remains also attractive from a fee capture perspective. So the most challenging area, the lowest fee capture is definitely on the PTs. It is very much a workflow solution and less about the benefits that we can deliver as a marketplace. And it’s when we’re operating as a marketplace and connecting the thousands of participants in it, that gives us the opportunity for richer fee capture.
Alexander Blostein: I got you. Thanks.
Operator: Our next question comes from the line of Ben Budish from Barclays. Please go ahead.
Benjamin Budish: Hi. Thanks for taking the question. I just wanted to double check on the dealer initiated segment. I don’t think you talked about how much of your business that comprises today. So can you maybe talk about that and where it’s been in the past? And then looking forward, if you think about how much of that piece can electronify versus the broader market in IG? How do you think about the potential there versus client to dealer and some of the other trade types? Thank you.
Richard Schiffman: Yes. Hi, Ben, it’s Rich again. And no we definitely feel strongly about our opportunities there. And you can say, roughly speaking, it’s about 30% of our RFQ activity is coming from dealers initiating on the RFQ side. So that has room to grow. And again, as I was just saying, it’s a promising area of fee capture. That’s, right now, using our RFQ protocols. As we introduce our matching solutions in the market, which we know has been very attractive to firms and also our order book live markets is another area that we think is going to be attractive to that user base, it’s pretty significant.
