(Reuters) -Bond trading platform MarketAxess beat Wall Street estimates for first-quarter profit on Wednesday, as heightened market volatility sparked record trading results.

WHY IT'S IMPORTANT

Sweeping changes by U.S. President Donald Trump affecting global trade policy have injected volatility in the bond markets and spurred investor engagement.

MarketAxess' results offer an insight into the bond market, widely viewed as a more reliable indicator of recession than the stock market.

CONTEXT

Mounting recession fears have sparked greater bond trading volumes as investors aggressively rejig their portfolios to hedge risks.

MarketAxess recently launched new capabilities in its portfolio and block trading offerings to drive increased client engagement.

New York-based MarketAxess expects continued market volatility and new offerings to strengthen its U.S. credit market share in the coming quarters.

KEY QUOTE

"During 1Q25 and continuing in early 2Q25, we have been encouraged by the performance of our platform as our clients have navigated the ongoing credit market volatility," MarketAxess CEO Chris Concannon said.

"We believe that MarketAxess' platform is well-positioned in this environment."

BY THE NUMBERS

On an adjusted basis, MarketAxess earned $1.87 per share in the three months ended March 31, beating Wall Street expectations of $1.81, according to data compiled by LSEG data.

Total average daily volume (ADV) jumped 31% to record $42.9 billion in the quarter.

Credit products, which generate about 90% of MarketAxess' revenue, posted a 6% rise in ADV to record $15.9 billion, driven mainly by strength in emerging markets and eurobonds.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shinjini Ganguli)