Case Study: MarketAxess achieves real-time pricing for 24,000 bonds and reduces model scoring errors with H2O.ai

H2O.ai Empowers MarketAxess to Innovate in Capital Markets

MarketAxess, a leading electronic trading platform for fixed‑income securities, faced the challenge of predicting accurate bond prices in low‑liquidity markets to provide traders with timely, transparent reference prices. To power its Composite+ pricing engine and improve price discovery across its workflow, MarketAxess partnered with H2O.ai, leveraging H2O-3 machine learning technology.

Using H2O.ai’s H2O-3, Composite+ applies AI to score and reprice over 24,000 corporate bonds in near‑real time (about every 15 seconds), even when proximate signals are missing. The H2O.ai‑powered solution is integrated across MarketAxess’ trading and data platforms, increased pricing‑prediction accuracy, transformed low‑quality data into high‑quality market signals, and reduced model scoring errors by an average of $0.66 per bond.

MarketAxess

David Krein

Global Head of Research