Targeted axes: precision, control and efficiency
For decades, sell-side traders have had a familiar problem: they have a specific axe, and they need to put it in front of the right clients fast, without broadcasting it to the market. The most reliable way to do that hasn’t changed in years: pick up the phone or fire off individual messages. But as soon as the list grows beyond a handful of names, the workflow slows down, context gets lost, and it becomes hard to scale with control.
Late last year, we launched Targeted Axes to take that manual, one-by-one outreach and turn it into a controlled, efficient, fully electronic workflow. Dealers can show a firm, disclosed list of axes (1 or many) to exactly the clients they choose, and buy-side traders can act on it immediately, while preserving the confidentiality and control that traders require.
From voice to electronification
Targeted Axes enables dealers to send firm, disclosed axes to a defined group of buy-side clients, whether that’s one counterparty or many, without widening the audience beyond what’s intended.
The workflow mirrors the familiarity of our Dealer RFQ workflow, where the sell-side trader enters the axe details, selects a distribution list, and sends. Distribution lists can be configured and reused, so the next time a similar instrument or trade type comes up, the trader reaches the same clients in seconds instead of rebuilding the outreach from scratch.
On the buy-side, the axe arrives on a dedicated screen with a pop-up notification, so it doesn’t get buried in a chat thread. In the same view, the trader immediately sees whether it lines up with existing interest through an opportunity count that shows how many resting RTS orders match that axe. That signal stays on the buy-side only, helping traders move quickly while preventing information leakage.
From there, engagement is fully electronic and firm. Buy-side traders can hit or lift automatically; link directly to RTS orders; counter on size or level; or “circle” an axe, placing it on hold while conducting due diligence. While circled, other traders are unable to automatically aggress the axe but they can still respond with their interest, and the dealer may elect to fill-or-kill the circle to execute away.
Circling removes one of voice trading’s most persistent sources of friction: uncertainty. However, it creates a new issue: the moment a buy-side trader circles an axe, its status updates in real time for everyone involved. All participants can see when an axe is circled, when it’s active, and when it’s no longer available. And because axes are firm, there’s no last look from the dealer, removing any ability to fade, reject or renegotiate.
An enhancement rolled out in our latest release for Swaps extends the workflow beyond single-line axes to fully disclosed, executable two-legged Swap and Switch package trades. Dealers can distribute firm Swap packages to selected client groups with defined firm limits on both legs and complete control over engagement. Buy-side traders receive actionable Swap axes directly in their Targeted Axes activity view, with package analytics: pick/give spread, price, G-spread, and maturity. Engagement happens at the package level only: clients can accept, counter, or circle, ensuring both legs execute simultaneously with full transparency for all participants.
One container, full transparency
All of this plays out in a single session window. Dealers post and manage multiple axes at once, watch responses come in, pull back unengaged axes, and respond to counters without losing the thread. Dealers gain focused buy-side attention with every step captured in a complete activity log.
For the buy-side, the experience stays equally focused. A dedicated activity tab surfaces axes that align with resting orders, making it easier to prioritize what matters and monitor multiple opportunities at once. Execution, counters, and order linking happen in real time, which reduces friction and speeds up decision-making. With Targeted Axes, buy-side traders can trust that what they’re seeing is actionable, relevant, and current.
What’s next?
The pilot phase of Targeted Axes has concluded with strong feedback from the traders who used it, confirming that the core workflows (targeted distribution, hit/lift, counters, and circling) hold up in the moments that matter most: when axes need to move quickly, cleanly, and with clear intent.
The next chapter focuses on giving both sides even more control and flexibility. In the coming months, we’re rolling out expanded buy-side controls over what axes they want to see, along with additional engagement options—building on what the pilot taught us about how dealers and clients want to interact when liquidity is scarce, and timing is everything.
Stay tuned for further details on these enhancements. You can contact myself or your MarketAxess representative to learn more.