Richard M. McVey
Chairman and Chief Executive Officer at MarketAxess
Good morning, and thank you for joining us to review our fourth quarter and full year results. We continue to execute our growth strategy and delivered the third consecutive quarter of record market share gains across nearly all our product areas, strong increases in trading volumes, and significant price improvement for clients through our unique all-to-all trading protocol Open Trading.
Our underlying revenue growth trends improved materially in the quarter, despite near term bond duration and FX revenue headwinds. We delivered 8% revenue growth, 10% adjusted for currency; EBITDA growth of 10%; and EPS growth of 15%. With this strong finish to the year, we delivered our 14th straight year of record annual revenue.
Slide 4 highlights the key areas of our growth strategy. Our leadership position in global credit continues to expand beyond just U.S. high grade with a record estimated market share in high yield in municipals, record share in Eurobonds and accelerating share gains of almost 300 basis points in emerging markets, reflecting our increasing global diversification.
The deep pool of liquidity on our platform continues to expand with a record of nearly 2,100 active client firms and a record number of active traders. We have seen especially strong growth in our international business with over 1,000 active client firms and nearly 6,000 active traders.
As traditional sources of liquidity have become scarce, the importance of our all-to-all liquidity increases and a record 38% of our credit volume was executed through Open Trading. This has been a key driver of our estimated market share gains and a source of valuable price improvement for our clients. For the full year 2022, an astonishing 1,300 client firms provided liquidity on the MarketAxess platform.
In summary, the foundation of our business has never been better, with accelerating growth in trading volume, new market-share records, increasing momentum in new product areas and a substantial addressable market opportunity. With this strong financial performance as backdrop, earlier this month, we announced that Chris Concannon, a proven leader deeply experienced in electronic markets will assume the CEO role in April, and I will take on the new role of Executive Chairman.
I would like to congratulate Chris on the promotion to CEO. It is well deserved and given his strengths in automation, e-trading protocols, data product delivery and ETFs, Chris is the right person to lead the company. And now is the right time to make this transition, because we have never been in a better position. I am excited about my new role as Executive Chairman, where I will continue to work with Chris and our Board of Directors on long term strategy, key client relationships, regulatory affairs and investor communications.
We will continue to invest actively in our business by developing new trading and data capabilities, adding new product areas and expanding internationally. We believe we have an outstanding opportunity set for the next decade and beyond and many reasons to believe that fixed income market environment will be favorable for e-trading and data revenue growth.
Slide 5 provides an update on market conditions in U.S. credit. In 2022, the Fed raised the Fed funds rate a total of 425 basis points, making it the fastest rate hike cycle since 1980 to '81. This shock to the fixed income markets, especially with the initial moves in the first half of the year, drove an unprecedented 14% decline in investment grade indices for the year, the largest negative return I have seen in my career.
Along with these price declines, duration declined approximately 20% from year end '21 levels to the lows in October, directly impacting high grade fee capture for institutional client e-trading activity. With some measures of inflation and economic growth trending down, interest rates have moved lower in the recent months, increasing bond index duration about 6% from the lows in October.
Higher bond yields around the world compared to one year ago create a better fixed income investing environment. We are already seeing the benefits of that with TRACE investment-grade bond volumes up 23% in Q4 versus one year ago. Investment grade TRACE ticket count in Q4 grew a remarkable 93% as investors re-enter the market and use trading automation to find liquidity.
TRACE average trade size is down 38% year-over-year; another trend that is favorable for market access. Smaller tickets require greater trading automation and at the margin, add to high grade fee capture. I expect market volumes in high yield emerging markets and Eurobonds to improve this year as well. We remain optimistic on growth in trading velocity, due to the improved fixed income investing environment, increase in trading automation and growth in market participation due to all-to-all trading opportunities.
Slide 6 shows the strong multi-year gains in estimated market share from the pre-pandemic period in 2019. This is the third consecutive quarter of top quartile market share gains for the company. In Q4 '22, all but one of our primary products were in the top quartile of historical data for year-over-year quarterly growth versus the past 10 years. Strong market share gains across our global product set combined with improving market volume and bond duration trends position the company well for revenue growth in 2023.
Now let me turn the call over to Chris for more details on business trends.