Marketaxess Holdings (MKTX) Risk Analysis

Intellectual Property Risks • We may not be able to protect our intellectual property rights or technology effectively, which would allow competitors to duplicate or replicate our electronic trading platforms or any of our other current or future functionalities, products or services. This could adversely affect our ability to compete. • We may not be able to protect our intellectual property rights or technology effectively, which would allow competitors to duplicate or replicate our electronic trading platforms or any of our other current or future functionalities, products or services. This could adversely affect our ability to compete. We may not be able to protect our intellectual property rights or technology effectively, which would allow competitors to duplicate or replicate our electronic trading platforms or any of our other current or future functionalities, products or services. This could adversely affect our ability to compete. • Defending against intellectual property infringement or other claims could be expensive and disruptive to our business. If we are found to infringe the proprietary rights of others, we could be required to redesign our technology, pay royalties or enter into license agreements with third parties. • Defending against intellectual property infringement or other claims could be expensive and disruptive to our business. If we are found to infringe the proprietary rights of others, we could be required to redesign our technology, pay royalties or enter into license agreements with third parties. Defending against intellectual property infringement or other claims could be expensive and disruptive to our business. If we are found to infringe the proprietary rights of others, we could be required to redesign our technology, pay royalties or enter into license agreements with third parties. • Our use of open-source software could result in litigation or require us to re-engineer our platforms or use other commercial solutions. • Our use of open-source software could result in litigation or require us to re-engineer our platforms or use other commercial solutions. Our use of open-source software could result in litigation or require us to re-engineer our platforms or use other commercial solutions.

Technology, IT Systems and Cybersecurity Risks • Rapid market or technological changes may render our technology obsolete or decrease the attractiveness of our products and services to our broker-dealer and institutional investor clients. • Rapid market or technological changes may render our technology obsolete or decrease the attractiveness of our products and services to our broker-dealer and institutional investor clients. Rapid market or technological changes may render our technology obsolete or decrease the attractiveness of our products and services to our broker-dealer and institutional investor clients. • Issues related to the development and use of AI may result in reputational harm, liability, or other adverse consequences to our business operations. • Issues related to the development and use of AI may result in reputational harm, liability, or other adverse consequences to our business operations. Issues related to the development and use of AI may result in reputational harm, liability, or other adverse consequences to our business operations. • We depend on third-party suppliers for key products and services. • We depend on third-party suppliers for key products and services. We depend on third-party suppliers for key products and services. • Our success depends on maintaining the integrity and capacity of our electronic trading platforms, systems and infrastructure. • Our success depends on maintaining the integrity and capacity of our electronic trading platforms, systems and infrastructure. Our success depends on maintaining the integrity and capacity of our electronic trading platforms, systems and infrastructure. • System failures, interruptions, delays in service, catastrophic events and resulting interruptions in the availability of our trading platforms could materially harm our business and reputation. • System failures, interruptions, delays in service, catastrophic events and resulting interruptions in the availability of our trading platforms could materially harm our business and reputation. System failures, interruptions, delays in service, catastrophic events and resulting interruptions in the availability of our trading platforms could materially harm our business and reputation. • If we experience design defects, errors, failures or delays with our platforms, products or services, including our automated and algorithmic trading solutions and pricing algorithms, our business could suffer serious harm. • If we experience design defects, errors, failures or delays with our platforms, products or services, including our automated and algorithmic trading solutions and pricing algorithms, our business could suffer serious harm. If we experience design defects, errors, failures or delays with our platforms, products or services, including our automated and algorithmic trading solutions and pricing algorithms, our business could suffer serious harm. • Malicious cyber-attacks, attempted cybersecurity breaches, and other adverse events affecting our operational systems or infrastructure, or those of third parties, could disrupt our businesses, result in the disclosure of confidential information, cause system unavailability damage our reputation and cause losses or regulatory penalties. • Malicious cyber-attacks, attempted cybersecurity breaches, and other adverse events affecting our operational systems or infrastructure, or those of third parties, could disrupt our businesses, result in the disclosure of confidential information, cause system unavailability damage our reputation and cause losses or regulatory penalties. Malicious cyber-attacks, attempted cybersecurity breaches, and other adverse events affecting our operational systems or infrastructure, or those of third parties, could disrupt our businesses, result in the disclosure of confidential information, cause system unavailability damage our reputation and cause losses or regulatory penalties. • Our actual or perceived failure to comply with privacy and data protection laws, regulations, and obligations could harm our business. • Our actual or perceived failure to comply with privacy and data protection laws, regulations, and obligations could harm our business. Our actual or perceived failure to comply with privacy and data protection laws, regulations, and obligations could harm our business.

Risks Relating to Market and Industry Dynamics and Competition Risks Relating to Market and Industry Dynamics and Competition • Global economic, political and market factors beyond our control could reduce demand for our services, and our profitability and business could suffer. • Global economic, political and market factors beyond our control could reduce demand for our services, and our profitability and business could suffer. Global economic, political and market factors beyond our control could reduce demand for our services, and our profitability and business could suffer. • Decreases in trading volumes in the fixed-income markets generally or on our platforms would harm our business and profitability. • Decreases in trading volumes in the fixed-income markets generally or on our platforms would harm our business and profitability. Decreases in trading volumes in the fixed-income markets generally or on our platforms would harm our business and profitability. • The industry in which we operate is rapidly evolving. If we are unable to adapt our business effectively to keep pace with industry changes, we may not be able to compete effectively, which could have a material adverse effect on our business, financial condition and results of operations. • The industry in which we operate is rapidly evolving. If we are unable to adapt our business effectively to keep pace with industry changes, we may not be able to compete effectively, which could have a material adverse effect on our business, financial condition and results of operations. The industry in which we operate is rapidly evolving. If we are unable to adapt our business effectively to keep pace with industry changes, we may not be able to compete effectively, which could have a material adverse effect on our business, financial condition and results of operations. • We face substantial competition that could reduce our market share and harm our financial performance. • We face substantial competition that could reduce our market share and harm our financial performance. We face substantial competition that could reduce our market share and harm our financial performance.

Risks Related to our Customer Concentration • We are dependent on our broker-dealer clients, who are not restricted from using their own proprietary or third-party platforms to transact with our institutional investor clients. • We are dependent on our broker-dealer clients, who are not restricted from using their own proprietary or third-party platforms to transact with our institutional investor clients. We are dependent on our broker-dealer clients, who are not restricted from using their own proprietary or third-party platforms to transact with our institutional investor clients. • We could lose significant sources of revenue and trading volume if we lose any of our significant institutional investor clients. • We could lose significant sources of revenue and trading volume if we lose any of our significant institutional investor clients. We could lose significant sources of revenue and trading volume if we lose any of our significant institutional investor clients.

Climate and Sustainability Risks • Risks related to climate change or other sustainability risks could adversely affect our operations or reputation. • Risks related to climate change or other sustainability risks could adversely affect our operations or reputation. • The risk of climate change or other environmental matters could adversely affect our business. The physical risks of climate change include chronic risks such as rising and changing mean global temperatures, rising sea levels and increased precipitation, as well as acute risks such an increase in the frequency and severity of extreme heat, floods, wildfires, dry days and hurricanes. The impact of such events could increase because of the geographical concentration of our operations and personnel in certain areas of the U.S., which are expected to experience higher risk levels than some other regions. Any of our primary locations or those of third parties on which we rely may be vulnerable to the adverse physical effects of climate change, which could result in risk of loss incurred as a result of physical damage, power outages or business interruption caused by such events. • In addition, governments, investors, employees, customers, and the public are increasingly focused on sustainability practices and disclosures. Increasing scrutiny from stakeholders and regulators with respect to sustainability matters may impose additional costs and expose us to additional risks. For example, certain investors are incorporating the business risks of climate change and the adequacy of companies’ responses to climate change and other sustainability matters as part of their investment theses and policies. Conversely, there are some stockholders and regulators who have expressed opposing views against sustainability practices, including support for anti-sustainability legislation and policies. For example, certain U.S. states have restricted state-controlled funds from investing based on sustainability factors. Our reputation could be adversely impacted by our sustainability practices and sustainability disclosures or investor perceptions thereof, including if we fail to establish measurable environmental goals or subsequently fail to meet any such goals or if the Company is perceived to have not responded appropriately to the growing concern for sustainability or climate issues. Any negative publicity we receive regarding sustainability, low sustainability scores or ratings, or shifts in investing priorities may adversely affect the trading price of our common stock or our business, operations and earnings. • Finally, the Company could experience increased operating costs or capital expenditures associated with complying with new disclosure-based or emissions-reduction requirements. • Finally, the Company could experience increased operating costs or capital expenditures associated with complying with new disclosure-based or emissions-reduction requirements.

Liquidity and Funding Risks • We cannot predict our future capital needs or our ability to obtain additional financing if we need it. • We cannot predict our future capital needs or our ability to obtain additional financing if we need it. We cannot predict our future capital needs or our ability to obtain additional financing if we need it. • Our business is dependent upon the availability of adequate funding and regulatory capital under applicable regulatory requirements. The growth of our Open Trading protocols, in particular, is dependent on the willingness of our customers and counterparties to engage in transactions with us and any perceived issues with our capital levels or access to funding could have a material adverse effect on business. As a result of our self-clearing and settlement activities, we are also required to finance certain transactions, maintain deposits with various clearing organizations and clearing broker-dealers and maintain a special reserve bank account for the benefit of customers pursuant to Rule 15c3-3 of the Exchange Act. Although we believe that our available cash resources and borrowing capacity under our credit agreement are sufficient to meet our presently anticipated liquidity needs and capital expenditure requirements for at least the next 12 months, we may in the future need to raise additional funds to, among other things: (1) support more rapid growth of our business; (2) finance transactions and maintain margin deposits at clearing organizations; (3) acquire complementary companies or technologies; (4) increase the regulatory net capital necessary to support our operations; or (5) respond to unanticipated or changing capital requirements. • In addition, our liquidity could be impaired due to circumstances that we may be unable to control, such as a general market disruption or an operational problem that affects our trading customers or counterparties, other third parties or us. • All or part of any debt financing could be pursuant to the terms of our credit agreements with third-party lenders, which include restrictive covenants with respect to dividends, issuances of additional capital and other financial and operational matters related to our business. • In the future, we may not be able to obtain additional financing, if needed, in amounts or on terms acceptable to us, if at all. If sufficient funds are not available or are not available on terms acceptable to us, our ability to fund our expansion, finance transactions and maintain margin deposits at clearing organizations, take advantage of acquisition opportunities, develop or enhance our services or products, or otherwise respond to competitive pressures would be significantly limited. These limitations could have a material adverse effect on our business, financial condition and results of operations. • In the future, we may not be able to obtain additional financing, if needed, in amounts or on terms acceptable to us, if at all. If sufficient funds are not available or are not available on terms acceptable to us, our ability to fund our expansion, finance transactions and maintain margin deposits at clearing organizations, take advantage of acquisition opportunities, develop or enhance our services or products, or otherwise respond to competitive pressures would be significantly limited. These limitations could have a material adverse effect on our business, financial condition and results of operations.

Regulatory and Legal Risks • We operate in a highly regulated industry and we may face restrictions with respect to the way we conduct certain of our operations. • We operate in a highly regulated industry and we may face restrictions with respect to the way we conduct certain of our operations. We operate in a highly regulated industry and we may face restrictions with respect to the way we conduct certain of our operations. • Our business and the trading businesses of many of our clients are subject to increasingly extensive government and other regulation, which may affect our trading volumes and increase our cost of doing business. • Our business and the trading businesses of many of our clients are subject to increasingly extensive government and other regulation, which may affect our trading volumes and increase our cost of doing business. Our business and the trading businesses of many of our clients are subject to increasingly extensive government and other regulation, which may affect our trading volumes and increase our cost of doing business. • The growing divergence of the U.K. and E.U. legal and regulatory requirements following Brexit could materially adversely impact our business, clients, financial condition, results of operations and prospects. • The growing divergence of the U.K. and E.U. legal and regulatory requirements following Brexit could materially adversely impact our business, clients, financial condition, results of operations and prospects. The growing divergence of the U.K. and E.U. legal and regulatory requirements following Brexit could materially adversely impact our business, clients, financial condition, results of operations and prospects. • The extensive regulation of our business means we have ongoing exposure to potentially significant costs and penalties. • The extensive regulation of our business means we have ongoing exposure to potentially significant costs and penalties. The extensive regulation of our business means we have ongoing exposure to potentially significant costs and penalties. • We are subject to the risks of litigation and securities laws liability. • We are subject to the risks of litigation and securities laws liability. We are subject to the risks of litigation and securities laws liability. • If our tax filing positions were to be challenged by federal, state and local, or foreign tax jurisdictions, we may not be wholly successful in defending our tax filing positions. • If our tax filing positions were to be challenged by federal, state and local, or foreign tax jurisdictions, we may not be wholly successful in defending our tax filing positions. If our tax filing positions were to be challenged by federal, state and local, or foreign tax jurisdictions, we may not be wholly successful in defending our tax filing positions.

Risks Related to Key Personnel and Employees • We are dependent on our management team, and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner. • We are dependent on our management team, and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner. We are dependent on our management team, and the loss of any key member of this team may prevent us from implementing our business plan in a timely manner. • Because competition for our employees is intense, we may not be able to attract and retain the highly skilled employees we need to support our business. • Because competition for our employees is intense, we may not be able to attract and retain the highly skilled employees we need to support our business. Because competition for our employees is intense, we may not be able to attract and retain the highly skilled employees we need to support our business.