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MarketAxess posts commissions revenue growth, higher trading volume YOY in Q4'16

MarketAxess Holdings Inc. reported fourth-quarter 2016 net income of $33.2 million, or 88 cents per share, up from $24.5 million, or 65 cents per share, in the year-ago quarter.

Total trading volume for the quarter was $338.26 billion, up from $250.37 billion in the prior-year quarter. Total average daily volume was $5.53 billion, up from $4.03 billion in the year-ago period.

Total revenues for the quarter increased 23.2% to $94.4 million from $76.6 million in the prior-year quarter.

Commissions revenue grew 26.5% year over year to $85.5 million from $67.6 million. The company attributed the increase to growth in variable transaction fees, which increased 36.4%.

Information and post-trade services revenue totaled $7.5 million for the quarter, slightly down from $7.7 million in the prior-year period. Investment income for the quarter increased to $668,000 from $284,000 in the year-ago period.

The company's board declared a quarterly dividend of 33 cents per share, an increase of 27% from the previous quarter's payout of 26 cents. The dividend is payable Feb. 23 to shareholders of record as Feb. 9.

During the quarter, the company repurchased a total of 62,800 shares at a cost of $10.1 million under its $75.0 million share repurchase program.

For the full year 2016, the company reported net income of $126.2 million, or $3.34 per share, up from $96.0 million, or $2.55 per share, in 2015.

For 2017, the company expects expenses to be in the range of $192.0 million to $208.0 million and capital expenditures to be between $25.0 million and $30.0 million. The overall effective tax rate is expected to be between 32% and 34% for 2017.