MarketAxess (MKTX) 31 Jan 182017 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded, January 31, 2018. I would now like to turn the call over to Dave Cresci, Investor Relations Manager at MarketAxess. sir. ahead, go Please

welcome MarketAxess and Conference Quarter Call. to morning, Fourth the XXXX Good

Rick Chief results. provide Chairman review the will then, McVey, For call, Financial Chief and in businesses. for Officer quarter, Tony DeLise, trends the the the Executive and on will financial update review our And highlights will Officer

their represent that may include by forward-looking Before I to are over events call call nature belief Rick, let future These what forward-looking Company’s today’s and statements the indicated The turn the me Company’s regarding statements. remind differ in those actual you condition financial uncertain. statements. is materially that, results from may

risk some Company’s Annual Report factors could of of the and risks on affect Form discussion XX-K future XXXX. forward-looking factors the see the which please for and that December website. of on in to also For results, earnings statement issued year-ended our disclaimer our would the is descriptions earlier XXst, you release, our this morning quarterly the available was direct read I now in

Now, call Rick. over let the to turn me

continues industry volume to you market flat an emerging and from estimate income data was joining was continued unfortunately with stock pretax Good share quarter volume thank be rose We all very volume also extremely international of the Based The company low up were our fourth year-over-year. basis in X% results up the for competitors. and of quarter. the volumes through quarter very year. level private $X.XX by trading call. market record a reached Open revenue the in is the Global for year of to during and area US market believe available the comparative analysts, million And down interest record was investors Revenue of us competitive landscape and consistent a our QX trading $XX.X XX.X%. for quarter, last high EPS quarter. benign these fourth results on for on throughout was led slightly X%, conditions given and markets to and morning. volumes full record the earnings plans/plants. growth grade relative strong

reached $X.X Three $XXX a superior inflow we for provides to volume one trading spread survey ending the a annual results Full year volatility update spread per at of past As income. $XXX the investor and QX, market into credit our easing seven was around was unusual $XXX trillion historically Their way the Associates continued XXXX $XX review broader markets. Trailing scale, competitive was extraordinary Greenwich revenue X.X% five levels. year lows. negative highly with results XXXX have of provides global was from position the to for compound million overall In in up approved get the trends. believe to result, released trillion share in year XX.X%. outlook e-trading flow The EPS continues has in confirm tightening with path is decade independent their in MarketAxess bonds relevant survey this volatility showed that stronger corporate and results low also in been in Central Bank with to and yield another record up dividend results XX% an increase of strong to quarterly operating of nearly quantitative demand volume, Xth sending XX.X%. XXXX rate the year XX% full consecutive bond trillion, activity On issuance attractive up electronic diluted rates long-term strong XX interest a X led six credit from growth injected and high marks years share yield. Transaction the a Credit revenue nearly creating the revenue investors Bank returns $X.XX, Central trading yields. record as XXXX up trading. year-over-year annual a free increase on in markets regular XXXX times record new our of share. cash bond grade US through rates. our funds as continued conditions. estimated record record government an and for record fueled months record light Slide year X market million. Directors for of XXXX. and in US impact world, $XX was X.X% million, $X.XX search and bond year market growth, a highlights shareholders. have growth high and continued Board Slide liquidity to This a growth

credit. in last interest sign resulting spur Bank's markets, shows the We global of trends we've X as of few and MiFID easing, a growing in large Over increase in by volume rates. create electronic for back pulling product. secondary the quarters, credit growth and account with a our The trading combined size that global Slide modest trading. II, activity opportunity quantitative Central regulatory seen and in higher a interest such could from market greater rates believe trade

volume by during in approximately $XX growth the in new grade the driven lead year, of volume grade with billion clients, was in Our was high The emerging as trading billion the $XXX share year-over-year as overall High US gains our well extending driven continued and record existing activity strong clients. in volume markets. space. up was gain by growth

our showing firms and For the of active client firms total full active clients. over year, products increase in to grew major X,XXX all

In per with versus emerging and across percentage pleased up Overall, start in trading way update $XXX day platform, $X the markets to year-over-year be XXXX, January, January month. in day. in for volume a of track volume on average our was grew last products billion XX% international billion. give strong record a XXXX. of business. record year. clients trading momentum to daily continues product I on EM the the is a currently to is diversification want to lead for foundation growth business emerging with record continued the to XX% the today markets XX% you all month volume Client especially at for are creates another an trends to the Since growth. around We future on

As is this typically case, quarter the January grade below last but fourth market above the high well share average January.

the provides Slide XX% trading of trading in We XX% few results daily Open XXXX will provide the X a trading. million final on up total volume update open in on the of represented XXXX, January volume $XXX average open was days. In year-over-year. an platform. traded

important liquidity when open basis bonds, estimated cost Liquidity estimate takers day. yield XX% US averaged in distribution Currently, that new million all savings benefited trade an becoming reduce up increase from improvement of in savings $XX sheet transaction client year, experienced in and another Participants open cost. XXXX. we Open experienced completed trading full we initiated increasingly XX% usage. average trades run open XXXX. high of balance believe trades mid volume of for price in the compared access from market XX% reached of are X,XXX from open X.X to trading points Dealer trading to year, from transaction realtime achieving high XX% transaction per approximately cost grade savings last an protocols. they For through Price, efforts and channel similar corporate trading velocity their our in up for market dealer open the trading, providers When Composite is XXXX.

US for trading liquidity an dealers both grade and vast network In an additive yield high investors. of pool operating volume of trading XX% open emerging XX% Our markets of of US provides XX% dealers XXXX, of volume, open investors volume. for and and high accounting

our results the additional and outlook. comments call Tony on Now me financial to let turn for over

X Thank product summary Slide Please of volume our you, for trading Rick. turn to categories. a across

were just quarter volume aggregated bonds, increased X% with billion. for U.S. X% monthly estimated a uplift on sequentially and We trading out The global activity in while other year estimated X% set carried note up year-over-year for approximately category $X.X share significant $XXX product High the Eurobond volumes in the the yield and on high the the volumes a increased Emerging December trading credit were X% X% market strong market estimated January. were billion estimated both flat. closed a is was and billion, again Volumes our market Our daily US and emerging average as in high flat increase markets $XX trading volume share standup record quarter year-over-year combination were Rick the has our higher of year-over-year. in quarter, volume high-grade for total across market yield average of sequentially. sequentially. volume daily volume. up with over mentioned, a into grade, and market market this

our X%, $X.X to percentage level share is revenue. market approximately there composite to around double $XX or point XXXX, equal every engagement significant is transaction a share grow leaving estimated Client And room volume annual daily For five is to was from X% was the On tough summary Slide and performance. revenue provide a and post up year-over-year commission up average the in of of million years drive increasing, higher. ago. billion share a Overall making X, we the market quarterly with in heighten was are adoption election market to activity face as investments necessary we XXXX. we X% revenue of electronic earnings comparable quarterly

our revenue in our information provide to The a and that recurring and post Information notice revenue contracts. trade data picture we to would due mainly implementation reporting new services services XX%, revenue post MiFID You trade is fees. services clear of is II recast businesses. to principally due up also uptick

a charge impact reflect year-over-year revenue Cuts a in up per $XX.X XXXX excess trade $X.XX signed than effective $X.XX in expect share recognized law million, pace, We benefit at taxes. offset of growth services items. historically or post rate to of This XX% XX% single Operating Tax was in was was the tax The one we before the by based decline December. were tax tax Jobs more to and from leading million, XX%. expenses the While quarter reflects or revenue and offsetting benefits in digit has fourth per income grown of compensation. in X% the Act into time share $XX.X share which low

size Total variable impact stable XX.X shares. million fees laid per in increase On Our on count transaction was X% our larger down change fees and to yield trading mix two fairly and the the products. $X.XX shift plan per the grade basis of up traded percentage execution distribution of was high of X% on million slightly US volumes million. sequential by share XXXX. lower shifting new $XX trading higher volume fourth XX, Slide year-over-year year-over-year The a dealers a revenue our down of were and fee a commission from diluted volume fee quarter as buckets. in the fees high offset diluted and reflects EPS we've within certain capture was fee caused plan,

Approximately $XX transaction Our fees other credit fee The basis. variants capture a million yield to category impact lower from August down offset $X.X due on fee yield in the the distribution effective was high high increase half of full by fees. new implemented was were Xst. quarter structure sequential

We increase emerging incentive also performance. in of as percentage share capture million free on and XXXX. of mix in expenses tied Cash year experienced XXXX. of increase resulting Total and of is events. million declined XX category XX% Slide from and higher aggregated bond. million exercises million. directly provide cash and up and XXX a advertising capital headcount typical an variable restricted The yearend swings shift swing repurchases year management balance On the XXXX including Sequentially in were and other compensation provides were million which by the reached $XXX X%. period-to-period option XXXX. marketing of depending information. operating net Full credit Slide benefits $XXX we and sequentially December $XXX vesting expense downs investments $XXX most lower sovereign campaign fee XXst XX, markets stock of you to $X.X to on with flow tends and details. versus volume significant in XX which Dividend and from mainly expenses was Compensation increased sheet timing the a was

current important dividend is our Our element quarterly an management strategy. of capital

increase three XX% more have doubled the announced past dividend we rate in With the the than quarterly just years. $X.XX, to

total shares we quarter, repurchased under share of fourth a buyback our XX,XXX program. the During

XXXX guidance. $XX million rate XX, XXst, under income future for have program. this December our On approximately of expenditure repurchases was and Slide As capital available we expense tax

building our out million of new mid year. York expect will of offices are December million date corporate the space of of in in moving the this and January We costs, total New We XXXX the we at possession a be targeted expenses in range approximately to have in $XXX occupancy $XXX Yards duplicate $X XX inclusive million of Hudson took City.

in an million growth range the and higher over years. $XX be the suggest Yards XXXX capital duplicate out space. guidance increase midpoint expenditures $XX will million five approximately to Hudson range which year-over-year cost the to Excluding cost, expenses, occupancy rate the office approximate than build include for in the little XX% to our are $XX from million expected past

majority benefit XXXX, significant option the with benefits XXXX exercises restricted the schedule be We federal percentage expect rate tax an estimate incorporate roughly tax income to lower to vest in XX%. the lower combination stock than The tax expected our million quarter. tax XXXX excess the range to first year reform for other charges $X of range The that XX the reduction XXXX. will that tax rate is expected by full XX% of tax rate on effective effective the in in for in also significantly federal reduce rate excess and the of mean guidance tax will in XXXX The recognized US roughly points. benefits that from stock

closing Now back comments. turn let to some the me call for Rick

Thank you, Tony.

We are given year difficult the trading year. the during fourth quarter and pleased the full conditions with results

invest our to for to We valuable heavily continue costs. reduce technology transaction clients build solutions to

efficiency. to client are the than global markets improving on ever more credit grow focused Our network and continues trading

good is start. opportunity We are the a off Year ahead excited to large about and New the

open happy I'd for to the Now your lines questions. be

[Operator And question Sandler Repetto O'Neill. first Instructions] Rich with Thank our from you. comes

line open. Your is now

be to European look. just the II but of I in in see experience be in you or in one to the Yes. your electronic a uptick the January? again of Good morning. Europe getting in Tony. And peers catalyst to an benefit has your But Hi, -- like sort trading is MiFID markets. MiFID company get the Rick. strong reported and question clear first electronic Hi, and trading to guess comps said the in of that private your difficult January appears for you trading? Are with what's II, trying appeared

data course those regulated of European our as well trade that suggesting purposes. the which processing encouraged to diversified in a reg do by trading But for get led not are we And mention signs trades think earlier, growth do earlier was our Tony with early include venues way want that we have I volumes. broad volumes to reporting electronic the is positive based reminder, as the January up European then by clients. outlined and clients business on And that by and in more US seen activity clients reporting are those And EM, products. we MiFID believe in business trading I tracked. II. on attributable we And numbers we to it's reason increase having our in credit also encouraged phone up Eurobond. and also continue be about And a we that impact that would their see development the in is say we've a significant of

you. I then helps. for one Thank That guess And Tony.

bit tax expense the flow it -- increase reform that midpoint a bit could a by and -- the was where or spending mentioned partly cash little usual. little year-over-year, little well bit from get You color higher increase. the a that that, more increased did than And the driven on just XX% is expand you increased as behind

to investing Sure, any Rich. we are influence plans piece from going it reform benefits to in and think I our the reform I'd say of continue invest. tax tax really around or

expand run address happening forward. the say result a what's to regulatory that just for for couple launch $X upwards higher II the new and market, the are We products the in Brexit incremental of the in CAGR, new color geographic front will items midpoint spending rate also addressable in XXXX. incremental launch I years investing that on recurring give spending will discrete XX% five there expand and going be and that's and of million that protocol, But MiFID are there while some reach to than slightly

say and of currency expenses bit the the is movement a add the XX% we an uplift. denominated have dollar, around right XX% our FX that $X functional subject that's second piece, of -- to remember not you million or swing, So I'd the as it dollar is US so around year-over-year just to FX are weakening, million in does with $X in expenses.

those trying excuse. an And But just, to this looking you the excuse X% were you are so but again are WE or carve you isn't make where items, if at somewhere to components are. to expense out make not an X%. to -- increase two around explain if

just quick one. Got last And one it.

the vesting. You range assume on guidance a said the that's for the quarter effective gave because first Any for rate quarter? the more the can of would like But you year help tax be sort in I the volatile rate very first quarter tax helpful. stock first of

Yes.

around again Rich, said So, benefit expect on vest most XXXX the now seeing quarter. remarks the quite right first tax occur benefits we what realize based what be are now we price million that be. prepared $X we frank you on and to -- somewhere based about. to be I excess the estimate of had most will making were But to the they where Actually and occurs in it in are have right that of those will tax share would in today

QX. additional see a And we XX%, in XX% happen benefit just XX% the quarter rough might tax to of in are and will of first you and quarter. numbers like first in most midpoint something that that the So QX guiding then

not to swing going it's So much. that

bit quarter. will in look first lower the it a So

Fitzgerald Sachs. our And question Conor from with Goldman you. next Thank comes

now open. line Your is

good Hi, morning.

from an see a you the is seeing that Europe in back price of response last client made behavior of update you it. the yield want some little Just back changing the any changes and bit half around on are to high if year get in of

high changes Quite high lot model in went market up the number environment, volatility benefiting On fee of serves for in that December, be that than to from did on yield think the put yield picks with clients. a we up of it scalable a participants months the flatness our a all system. have over the we share And that to it's are will to And do the we more quarters we market had that needs you we August important liquidity lack honestly have and believe made. Sure. through yield is the that record sure in share else. fair and anything as market are I see pool I unique Tony well optimistic trends changes coming high our watch the we the make think and benign

are we high early So on we there in yield right we of are think fee and days track changes. the those

that presence tweak at it have And did you was same to MiFID with in schedule all your the XQ? or is

be parts what analyzing disclosed more include are included going things in a that few a we also is industry are and is regulations by It's terms that and make of sure exercise us. did making we MTFTs -- coming is could lot new go. maybe the we to the make modest as through in will and in everyone modifications changes those everything as consistent of schedules they sure as really and standardized There regulations. is think that required MTF the the with I some a there fee moving standardize of

increased you. the That's today. Thanks. Tony one Nice for helpful to see dividend just And then color.

could are period if just M&A came ask to your on your there want right carry in? for on short leverage much updated opportunity how time flexibility you think you of an that the if interested opportunity was thoughts Just business capital across want

business. have we the need the we end we It's million. a $XXX is year Because don't Conor. And $XXX And to good run million on -- right no around it the amount cash sheet. question, fair there of secret securities that was sitting and balance

earmarked we look and have do the working to for money we regulatory So when excess support need capital open for we purposes, trading. -- at capital

cash in along. capital use was the So we of sheet. fair a the million just our of EBITDA have upward entity. leverage $XXX right There is securities any on where million. still opportunity $XXX excess amount if We north came We our cash regulated could on posted don't and of of We balance today. have the excess around year

So amount on fair put that leverage we of have could the a we company.

opportunistically or if that So the leverage comfortably. type Xx we the would that have of EBITDA we the way. will on put flexibility along and opportunity it And or comes act right Xx Xx we be be can

you. And Kyle from next Thank comes Voigt with our question KBW.

Your line is open. now

morning. good Hi,

of in there potentially acquiring long that are asset is bonds Tradeweb? to up Thompson of then classes maybe just kind First past kind with view on the one question sale? How get help I And just a to Blackstone focus guess us here your your run transaction you the Conor's competitive thoughts to a could just understand on the space? for of potentially your assets in about follow transaction. of there kind curious of energy rate bond environment just on cash to such the you've maybe outside it corporate that more impact broadly important is if with Seems core could other interest been the like

Sure.

meaningful other stake. Tradeweb appearances additional stay will in. all appear question, equity to what all know the we along done, the financial And Tradeweb owner Blackstone we've most media in with Blackstone. the from by all Kyle, read that On in spoken that assets press included we an was us, you of involved first have. news with the the well yesterday that be It everyone TR to is as is and would reports that new same investing release will so the else assets TR creates as

think competitive not to credit or what At corporate really come. on do bond. well And landscape. changes see we second are predict even products growing say our it's value in been your may corporate. we've Clearly, we M&A. the the I significant of advantage there is beyond any And So face speculate question early too our organically beyond competitive on in or in credit as primary very focus year But within our are opportunity focus. the in significant our we another credit long either to help interested served us or we've on organic we be fits growth. We vision. with expand to products inorganically clients assets market extremely with there that in and could shareholder that and term regions terms well believe would be started and interests many complimentary that would difference very in that is anything

you. just thank second And market right, share. All then one on the

I is think year XQ January how said that levels? grade of last for tracking and above on specifically. in high versus high high color XQ but EM level and below you grade Any yield

the positive. that by year. seeing in have is growth optimistic to regulatory ADD as across think I mentioned have based but are the our few growth seen outlook in always across products. do that trends between outlined slight we've with on result are broad that to we that very increase assume that safe we And volatility the before. encouraged the product volumes we a really a it's I the for never days I earlier, ongoing market are these full detail we we that every trading seen are we'll start the and monthly And numbers as And January out

Great. follow And then million. fees a just up for per on the last me

higher. high you just did than lower grade specifically, the Just the other I forward. a I a run high a towards think expected? are expected. $XXX per And big bit on product just yield was trying on come come did mean per I we going that credit million bit in we fees you Tony to guiding little rate about where are it around million high below how think in or should yield that that side? think

came on you that Kyle, Yes. in with literally spot number.

first seen So right fees million. per fees of what high yield new post those are we've schedule $XXX the that around implementation August

so have at Now spread, that yield we been you have we working high structures price, high on on have all , different we trade realize fee look trading plans trade yield across high that that that. when yield or

this seven there it's but or be So per $XXX could swings and million. we all into months are this some around into been months five

Raymond O'Shaughnessy you. Thank from question Patrick comes And James. with our next

now Your open. line is

So, Is you trade how trade, Rick, that. traction view market you mentioned brings activity? more kind time of of where electronic spotting discrete that you is something in for completely over your had that kind or to you leads people voice that of access execution trade some with if do the ecosystem spotting guys and and into it type

specific Well, mentioned I trade to capture. foreign be Patrick

parties that these their and by so And one then bilaterally off are trade phone trades clients mechanisms system. the processed or dealers between And or system. communication conducted both won trade on

clients And so we trade trade for carry ancillary believe post very that this that's with obviously But electronic fees. in not activity obviously an service platform. it's is a low the and any

accuracy So reporting. it's a service and at but efficiency it does help our their clients to trade increase

on the activity their are clients system throughout of the to attracted day. for those more staying we course, Of

a technology? clarification. think then and few maybe One think investing quotes; one initiatives for And talked having Thanks XXXX investment about it. we goes where spending be Got I day. you your as are going the some your that functionality, process is are to most you've things for where retail the your in throughout What's pricing past. auction XXXX? updated of another having on streaming in there that sort is thinking

as four different don't I five will think surprise come any a of priorities to got We you. Sure. them and or

XX a markets investments First, market corporate debt trading created as and last or that a markets local trading is emerging quarters, about in that trading, requires And currency, solution EM we we available market vast we really momentum comprehensive trading market that hard are with we bond place by trading. the and three mentioned encouraged that XX for local global increasingly or clients have includes sovereign our the because for have trading. EM two over or

to to key same the international increasing around world. time market is is of And more more EM us. EM attract resources sales one client expand continue the clients at to platform while offering, diversification priority the the local So investments a to product for and EM dealers

investor continue will what what resources to credit go we also sales very our EM see encouraged America large Asia see Europe Latin we in product a of helping we and to we invest auto QX in execution of those of efficiency. out out rolling and to Within of take and by disproportionate as in a that and So the in are to in advantage Europe and we growing businesses, is opportunity. really the into the that the process dealer which we US. desire to rolled one now with trading And ways in are increase are continue

to absolutely this trades with manual labor whatsoever. small no investors electronically execute allows For

that So increases that space, pool we you liquidity do believe at and we another for micro we efficiency. as retail, by the that in trading, we have further are we encouraged look their can And as that they advisors lot mentioned retail extended some investments segment combination into well the of further to brokers. focus client the with retail technology as sales and can as fit resources modest and trading to with in be retail wealth on the client activity, way

that So pretty seeing the full currently. something investment return those And areas are about are we agenda. on are we it's but so many excited a

think of and I rolls your paying just your occupancy your OpEx for now then then it, very specifically initial when going to basically you thoughts in groan this. we are new on Tony. for currently headquarters you. Do ask guidance But as the think from Got kind what $X And off? are stays one And And you have existing XXXX. we helpful, of that XXXX thank you line. for I headquarters just probably million it

it's Patrick? clear I on You how about XXXX. That possible outside, -- that. asking it's are saying can groan, Its

separate square cost So and of around Yards, per Today, York with are high. is Yards here rent square you XX,XXX taking to New this. remember part lease feet Hudson doing what we square feet right XX,XXX three we we in are the on expense and have its Hudson of locations in for about foot XX%

So uplift, be there there expense. uplift will will rent be in an an

when And XXX around million XXX you to XXX the about you If taking to numbers for something the floor, comes wee to this down million cost trying new is cost Park space I and that million. Lexington, as duplicate can, as year modeling occupancy $XX GAAP means around can Now probably that should be and XX the clear cost. year you floor, online those occupancy rent million. I XXXX fully am $X close $X occupancy if we this Park for expect you year for last are XX telling come $X exit

for So up about to $XX down $XX to clear million last to million as $X million year as I get. XXXX. can That's

from you. comes with Shutler Chris Thank our William next And question Blair.

now line Your is open.

Hey, good morning. guys,

on the can Regarding and up give block or matching. some quarter in Thanks. progress you just [Indiscernible] functionality sizes, can progress larger in you've on the quantify work percentage you the way us made maybe trade the

Sure.

million million I most gain as in think up. $X at year it $X trade last we share look to from million larger our and that both of $X came high sizes grade and

from So high and trade million $X US about our million volume in $X grade comes around up. our and up XX% of XX% comes of sizes and from volume

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see in X.X% so grade. think or high I what we I trades running we saying for that trades block right are around in am

platform. terms So there is of especially getting larger the bonds, comfortable there more ticket liquid clients with sizes on trading progress definitely in

a are open out of ends starts $X trading. more we Now sometimes some One, trade-in two I a success things. trading that trades up the up series category that meaningful add to having in million with and and with block something point work with through

seen two give last that local markets for the pickup local during of trading very would in Chris we year of EM EM I emerging example we've other protocol. responses markets markets course block is way request market protocol a introduced in in through fast and The trading for

continue deliver fit large system. trade sizes will on we to technology more continue that to both investors really to and solution invest the for dealers do So to

Rick. talked what you new combination of thanks, clients really will the I important driver historically the markets. and emerging more -- the existing more the what's couple is addition trying it one by more just about by more client. right, important but it's or seeing driven then know both over just a be trading strong And more, next years? you more are being of driven figure of or driver All that of growth growth out in Is being to

We've our disproportionate right I in of came our new were growth were lot the And we the in that which their we XXXX But I I have last to you or is are you bond there. at EM see on given newly that have clients would importantly to year looked you why are Those increasing the on in of both. market in Asia, up. months be the think last tracks the can and as size clients have of we feature estimate and from our we clients for year. existing XX over number in reasonable reporting two international but share a much resources Europe we is we've the three exact around that important international London numbers globally. new primarily grown our and prior US EM if EM but growth will are database distinguishing currently. has not as taken it opportunity a And we that been of year honestly clients the the X% over clients estimates EM, corporate are sure tell last the EM market from exactly last trace there of incredibly been growth. years EM The volume

our onboard and both adoption heating client be really really clients, and opportunity and with investment So attract company. are to this in protocols the for that new sales growth long-term up we could encouraged a new

from from Rich our next Repetto O'Neill. up follow a And is you. question Thank Sandler

is open. line Your now

of from color and explain highest market. the of this are on? range you times the you Yes, little we all already just I of bit can for range, to time; this you know a us income But market of is tries most you of gave in could What's happens look deeper some comes we block little and to year. but know we I inside at the why guess what learn down at a little fixed on a that look issuance a the I Hey, can time? the your size year? lot can bit the share expect December but in going happen the trade your and catalyst give look what's really And historically Could January. in behind experience Rick, that? market it the

really basis. all and December it's yield I on extremely are difficult and to measure on market high set in we trends monthly Well, really in EM yearend holiday volumes feature But in market of expect the obviously is month the a of is of grade, on trading for results markets share think Because records month a of issue a as typically in right and in new absolutely and the given income lighter. lightest thank And the for December high it's you is that estimated interesting environment it have market December. month tax new rebalancing would access first trading. why story are because significantly distinguishing where where fixed and conduct you a to activity one going there lot also investors create of question what's months portfolio the January electronic you

January in high more is this and they year. are into which around And secondary they there new again So in when those very typically been rebalances. yearend have leading are issues activity

week trade underwriters, and underwriters up. You of goes done that first block very that protocol trade see Market or generally that new issue actively new is go the trace the gets the through in two. issue bond the percentage currently trading focus the to

last block of trace the or XX%. So was end at percentage December two if at look you the in you will months trading around the see range the that low

fast reflective two. new for will issue is January, the trading all you XX% calendar XX%, with of and those the If size see block or to the new you in the week activity first of in that up the underwriters it's in forward issues difference around or

we our are is do even we company. is activity much driving market higher Now which trading numbers though do clearly, if you like share volumes prefer, because we for December lower ask which the record us January better than

client that or it and step and we month to and make our January to on greater changes trading really, global you is we about do are at feel secular month them has a quarters at term month. I see promise we that what that know back the all it's behavior changing share measure credit. electronics think can in really month what's impossible back December that trace. has look that's to will highly And to optimistic continue longer I but in how It going is lower you to and to to then market clear and difficult those do basis. is what all have to measure trend they trend fact with share than nothing trends do that So is set market look if that access. And it years, for there with you

question through the way last I but very market EM guess other quick II share way of what would EM just understood you the clients very, is had you MiFID helpful. it, that in I the experienced Got European my be saying benefits from trading you one earlier market. experienced And on benefits thing or to first the

picture are that about been again right? do have with quantify that like I ballpark Is people excited that's January. so And that of you are produced, think this Europe Do the you I occurring imply opportunity seems because change. in there seeing that's regulatory sort what any can way in

Yes. Yes.

client And yield, first products. January hard know our to you'll it during the and the business credit because is we EM, across of in II with see our view quarter US So fourth But isolation contribution business it's active euros, in what a better It's has behavior when change European European think euros up year-over-year, across and activity because MiFID been mistake XX%. the is is look know than bit are what starting that part exactly January. products is XXXX. to in and as our and environment an a about we the seeing will you is month in market I diversified year

start the And a the look the changes with trading So are year European encouraged behavioral regulatory to client causing shift we that activity. like does by activity. in it are electronic fact the

question next Allen Thank you. Rosenblatt. And comes Chris from our with

Your line is open. now

Good guys. morning,

and you if this. wondering color that Just XX% of give for had revenue occurring quick I those one. could pipeline client what us Fee info new one forward. just up a look in was contracts. I the is due apologize type services I is terms the purchasing to now on if going the any of contracts miss

within line info XX% that it's per out the up service info you -- or And we historically been category that saw data Chris, has we pick at and and business volume pricing reports. bond services year. growing So, that about ended our breaking have we services

there we've higher are all We a each The product have -- years line. new past $X there had now of is two year. so is contracts recurring reference in data, or access variety that products, million data

do broad it's dealer, a expect of there. broker managers; client growth going combination based forward. pretty group we investment a So It's

questions over And to you. showing turn further time. now I'd Rick this further not I any to like Thank remarks. for the at McVey am call back any

morning. forward And joining all quarter. Thank you up we us to of next look for catching you this with

gentlemen, thank today's Everyone for a conference. and does have And day. program. conclude today's disconnect. you in This all Ladies you participating wonderful may