MKTX · 10-Q · 2026Q2 · Full report

Foreign Currency Impact

MARKETAXESS HOLDINGS INC · 2026-08-07 · Importance 20 · Surprise 24 · In source text

Other, net decreased by $1.5 million because the Company recorded foreign-currency transaction losses in the six months ended June 30, 2026, compared with transaction gains in the prior-year period. Exchange-rate movements reduced cash and cash equivalents by $4.6 million in 2026, versus a $27.1 million positive effect in 2025, principally due to weakening of the British Pound and Euro against the U.S. Dollar. The Company hedged certain foreign-currency transaction exposure with forward contracts having $145.5 million of notional value and a $1.6 million fair-value liability at June 30, 2026.

Key facts

• $31.7 million change in effect of exchange rate changes on cash was due to weakening of British Pound and Euro versus U.S. Dollar source
• Changes in average foreign currency exchange rates increased revenues by $4.1 million and increased expenses by $3.0 million for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. source
• Notional value of foreign currency forward contracts outstanding as of June 30, 2026: $145.5 million and fair value of the liability: $1.6 million source
• Other, net decreased by $1.5 million, primarily driven by foreign currency transaction losses in the current period compared to gains in the prior period source
• Changes in average foreign currency exchange rates had no significant impact on revenues and expenses for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. source

Impact estimates