MarketAxess (MKTX) 25 Jul 182018 Q2 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 call is being recorded, July 25, 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. Second the XXXX Good

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

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

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

turn me Rick. call let Now over the to

year-over-year. trading we morning. of driven strong four you And us morning joining discuss second volume was second core products, gains our XX% Good of trading quarter year-over-year This Overall results. $XXX quarter open for our results, market volumes, activity. increased XXXX all trading to share thank reported across up record and billion

share of high-grade was market last estimated Our from U.S. XX.X% up XX% year.

X% year and million $X.XX. up to the reached was to XXXX. Open was accelerate for QX adoption XX%. revenue a X% volume quarter of $XX compared ago, continues $XXX up million, Trading Operating of Second billion, up was record EPS to XX%, up a quarter and diluted $XX income from

secondary high-grade rapid favorable quarter saw quarter. the in Additionally, gains. market market Overall interest new second up. and X, conditions. update the declined a during for rate combination both issue in creates volatility the market and volatility Eurobond additions and Slide trading were short-term share was That both environment provides volume an spread growth Credit on QX. emerging versus volume less difficult more

yield completed the in Open in transaction the price providers points year. XXX,XXX representing transaction the growth system, drove provides is an they price slower second on the of the billion. tends the from on negatively fee of Open responses, normal of of high-grade an up average XXXX. update the Open Slide average factors last reduce on than This quarter. Trading was XXX,XXX products year. impacts in from quarter transactions accelerated during makers growth offset the platform. bonds our from of quarter, other maturity a Trading yield capture. Liquidity second Trading XX% Trading $XX transaction in QX in XX% flattening were In a up from traded high-grade. X, one second Liquidity takers million quarter in XX% our the a addition, completed U.S. savings Trading estimated that to results $XX QX, up XX% years Open helped approximately represented Strong when quarter increase Trading. in XXX,XXX two during the curve through were in to on high-grade Participants record up volume protocols. XX% through saved to last cost costs platform, Open benefited basis activity in volume and Open to Over

during and investor credit as across trading. benefits this XX% to dealer increase. QX, improving source across the Importantly, year-over-year Open motivating trading Growing were responses log inquiry growing experience quarter. of of auto count four Slide clients system. automation for new up on XX%. and micro-lot all especially investor and the estimated tools High-grade market Algo-generated greater micro-lot including XXX,XXX creates volume products price automated trade is both for Trading with highs of strongly continue responses small trade algos environment, up is liquidity. highly the rapidly, to core up making. is the up transactions Total growing X in Inquiry in volume count strong Dealer embraced per new market a was rapidly MarketAxess are were at The the client was makers year-over-year and to XX% demonstrates invest reaching orders. automation over share competitive responses market average over algo [ph] growing XXX% use year-over-year.

of use trading seeing lower dealer cost cost provides Slide to on and growing to investor benefits clients drive in to that progress. believe the tools of impact levels We continue transactions. are trading. investor X credit We auto of automation higher execution international update an also low-market on will

XX% markets, volumes Eurobond II increase European up We international XX XXX as we MiFID have Emerging with leading XX%, institutions in now in growth markets external local well growth. volume over both client a up in another positive Our number business on of international year-over-year. firms a client clients. EM experienced increase platform to with volume clients from were on where of XX% as continues strong the XX% year-over-year. debt active training the representing operate. currently behavior, rapid quarter market have a impact to European was a

opportunity in our rating growth footprint the for expands long-term significantly international growing Our shareholders. credit

Now detail. let Tony the me to financial to turn results greater discuss call in the over

primarily block trades XX% Rick. market completed volume. a to summary approximately product Slide due quarter, of We during X,XXX were X Thank billion volumes across for in U.S. high-grade trading our to TRACE XX% the increase high-grade categories. quarter. the second turn volume for $XXX U.S. you, Please up year-over-year,

year-over-year. second XXX quarterly On yield in is almost high the and markets Slide of in provide Market category robust estimated aggregate new or X%. in have for well XX% first tailwinds more share high-grade is short clients the in slightly days paper With of and X, programs quarter share other increase in did repeat the the over platform, fairly was the have in Healthy data in share U.S. X,XXX ahead leading trading $X.X gains and operating volume. to years, quarter Volumes the three Eurobonds growth driver in evidenced we over new increase in below drove XX% post-trade past important running income. and level growth up and of from we trading across remaining the major second volume client credit our core firms XX% MiFID the just a July, commissions selling experienced volumes XQ. XX% of products. services volume However, markets estimated quarter and in year-over-year, of issuance Overall due in two The were was is over-year, were XX% market quarter XX% engagement down emerging in five our was higher. revenue high-yield up not revenue trading level. market on client to second an performance. estimated in summary customers. The Expenses market emerging while II running combination the XXX active a the each new services was earnings now primarily the We X% products. is year- a main XX% growth million increase Eurobond uplift behind up

the expense and City, tax XX%. operating rate year-to-date. phase quarter in The rent new income the York during duplicate effective recognized New build-out Company's was XX.X% was second corporate of in up the XX.X% Excluding offices

rate expect guidance within We year the XXXX the effective XX% will XX% full for tax to be range.

as in laid transaction and Our fairly have Total Eurobond our volume On fees up the our plan high-yield out was to second revisions prior variable was year-over-year stable principally of to trading market related due Slide million the U.S. $X high-grade the The million up shift plan. U.S. more maker was XX% our fee shares. revenue, one fee offset $X, were compared increase recognized X% trade XX, of XX.X moving distribution to size together A impact fee of duration. fees quarter we diluted $X.XX a million the with quarter plan increase new implemented shift the volumes sequential by certain and million. distribution to plan more to products. on under lower in first period. XXXX, fees tiered mix the the in EPS was high-grade per fee a distribution third count smaller diluted portion in the share the quarter and commission mix trading within than offset as of paper fees per fee

roughly expect We lower high-grade the quarter that fees third than level. will distribution second quarter be $XXX,XXX

either which costs and the A accounted and bonus emerging were fee notably, category lower high the reduction market high-grade the taxes marketing from is advertising. quarter other was credit on programs benefits mix a flat expenses in for and and operating was lower of that market trades there the costs. We sequential a benefit were said, advertising granular with resulting yield spread in and offset markets credit accruals capture a a of as expenses and advertising and Our influences for performance $X.X emerging That or compensation quarters. quarter. directly were seasonally million greater the fees per derived basis. for and two with various second lower increases among Sequentially, high-yield, sovereigns, several protocol, first line detail. other next all variable employment Slide compensation and indicative a European on most volume by marketing tied million you benefits to percentage and the fee emerging expense. marketing run the level sequential with $X the consistent capture is of more rate in level, drop believe provides the price and down U.S. in incorporates The and expense timing events quarterly shift greatly other XX At products in items, category. Eurobonds for

XXXX of $XXX Slide information. inclusive range duplicate to of of Cash the million in year-end year million to rent On and projected June $X expense. were million, million, lower to we are provide full at sheet Our of balance half compared fall the XXXX. as XX million XX in $XXX $XXX approximately $XXX investments expenses guidance

of During $X.X and quarterly million. cost repurchased the second a of shares cash XX,XXX quarter, a we dividend million paid at $XX

a $X.XX dividend. spent on board York also $X million these months build-out results, New Based a City construction million. our was XX Trailing of We flow the $XXX approved record the with quarterly pretax regular has space. on office associated

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

international were clients activity is that progress in of seeing investment Thank pleased trading Open investor electronic on We and priorities, future is bright. trading by importantly, credit we dealer you, Trading sign clear both in growth during a including the overall increased long-term growth automation Most with the quarter. Tony. the The are trading expansion. good in

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

Kyle first And [Operator our Instructions] KBW. comes Thank question you. from Voigt from

is now line open. Your

morning. me. Excuse good Hi,

of winning. the But mostly said some fixed So institutional didn't first looking question, I be kind point buy there time, developing trade there, sounded that space. analysis noted that assets, there at having on side, mentality think, to probably introduce you And you – year, micro-lot, regarding on you it’s like they looked it may retail end guess, quick functionality I it up versus are is some this this the last but sounded you retail like for you're the build assets like year. to the done was some for of at obviously,

investment anticipate retail wondering medium the more over rolling priority term? in is has year? something guess, this an to then you the I directly been Just there And near that space, out

our we're good most for trade question, that among that’s Kyle. very sizes. that. Yes, I think you highly pool the comfortable competitive a for But micro-lot liquidity Thank is

in on sales amount only micro-lots, we and in make modest prioritized that tremendous not small as and closely half are tickets market we investment and retail in the that active of markets the improved opportunity we community. retail that overlap makers have year, to towards some segment in technology in client that some platform also to segment. institutions tweaks continue the are first focus would the have to in but active the suit the involve look the for We a Not the marketing of segment retail

increasingly and opportunity long-term retail to for we that So think, we a participants could that segment enter look at in how makers the company is, we talking to engaged with are those the space market and organically.

Okay, enough. fair

be talk total you what your where I your as you Or take that I market like you what of XX%. just given think go just will do internally, will percentage can percentage you total record what your guess, And then of think of get it – a just at to timeframe longer-term, kind The Trading, volume there? you have? in do quarter question the Open volume? do of the about, targets Can second guess on

I whether target go. specific will don't we Open a know percentages where have on Trading

we best our always improve clients. and Open been And pool liquidity, broadening our it's broaden and on we execution Trading thing quality. better to the have of serve deepening has is the new focus add to liquidity most think liquidity pool Our part important done and

years, be So that the judging dealers at of pool, and percentage be less a the very bonds. last by larger volume. we especially in Trading That the rapid would of we to expect and few continue the to growth in liquidity our said, expect significantly liquid Open part important to trades case, be higher

mind So clients Open there and activity. on in will Trading traditional to balance the dealer our platform between always be activity and

from me. then And one Okay. last

Just Trading. to follow-up on Open

those from of rapidly buckets what's Open penetration a products. local of in past You base between highlight each you Eurobonds in continues or your changes increased site. there whether looks other Open Thank than products. Eurobond and different you grow of changed you. But outlook uptake and some think protocol lower to EM could I the it talk gave be EM what is Can year, what's there? yes, of a changed of pretty just about the may EM Trading regulatory be introduced adoption, and the kind in you It of the kind Trading driving changing? breakdown would

you thank Yes, that. for

easier quarter's think that made market for have that last mentioned we Open And changes Eurobonds. some made technology makers I in we – in call that it Trading has calls we for protocols the through Open that greater Open benefit investors. and to new have also Eurobonds. in we've of to to We've Trading some activity seen been Trading that respond important introduced orders,

So we to technology participants been to that's enhancements been make easier deliver for think respond really, some mostly that market we've in it to able Eurobonds.

side, changing EM and roll dealers debt. it's it On on. in organic in coming we're EM book. more just seeing The And price better the open trading as available of external think, the back. Most investors adoption are is seeing the I in opportunities riddle easier and responses quarters order trade at that It re that But is around settlement the local the local through our many many We' settlement markets. of one settle trade trade is very through difficult in market solve to than and a bonds Euroclear EM significantly markets. for the time. the of working are behavior

markets. Trading So in organic external in activity growth Open is it primarily EM, debt

in queue. Great, and the thanks I will hop back

Repetto Thank you. And our from next question comes Sandler O'Neill. from Rich

line now open. is Your

Tony. Yes good morning morning Rick. Good

Rich. morning Good

Good Rich. morning

not the numbers tremendous levels. and beat Trading this but volume as the the And guess, quarter-to-quarter your So as, the was off the success quarter but reflected well with to other in is robust Trading. this but I previous anymore, me, said penetration, Open as what in Open up surprises call first

volume incremental get up up the Trading go when X.X%? my volume there be the think, guess, that change first your overall driving penetration now, much what's go is saw down, I changes Open much, I So question X%, to what's quarter how – actually had from – to so was to penetration, some your like this in

over sign inquiry trading growing anonymous I Investors more work we through. I sheet are trading turn contributing it's or off Open inquiries community of as they what earlier It's for for then, balance all-to-all increased they and go increasingly to in of automation a own have is this Rich, third It's really valuable Trading move use opportunities their morning source their actively liquidity. a can't responding growth their to tool cylinders think the about bonds is more the a trade them to all sheets piece dealer see and of that announced inquiry. that acceptance as become that credit. using an sequential it's disclosed in talked balance may algos, And whether more aged. to really the rapidly rolling

pieces three create So source liquidity all investor both more I marketplace and our think are to valuable clients. and a dealer that combining of of for much

this. Rick, price too this, getting again, be but being deep we you XXX,XXX were too trading lower also Trading? trading versus a get so the XXX,XXX was in in quarter-to-quarter, is – the XQ from percentage of on weeds trades being to not that lower responses responses far a helps again, down look down. it the last price this but block a may And the volume block XQ percentage as follow-up But into if size just Open but, up, The

Yes, of that it piece a could too. be

I think that's a observation. reasonable

very to else. than more I As market with conditions mentioned, I anything a decrease much responses price had in think, modest do

investors' sentiment programs As the significantly and block volatility you we first. and at were and on best the spread QX. rate the interest in we changing the the you case not had. the second quarter looking of quieter other lot credit ever the had That cover, in beneficiary And companies know better than QX the and that short of created quarter a was drove system block was

and of much levels a in saw lower credit You both interest volatility rates. spreads

I saw the morning think range. XX note where seven basis in XX a was this we days year had that point stuck I

quarter, I primary So it reduced price levels a driver the was activity and just was trading across platform and responses. slightly that slightly different the of think fewer

Got I one follow-up regulatory, sort or last question. guess, and it, of just

know hidden playing markets the provide know, that fixed SEC he Jackson, During the costs I in saying conflicts a you was the were not quoted and income who had – – – think talked were field. of level interest just quarter, I Commissioner did

benefiting would that let's it? months since markets the – electronic the close the the income the do or, to just income is, regards how could the And access and action You're regulation I how in are you expect next that in see on question what we fixed market to platforms? advisory or the XX second of And in year committee. say, much fixed – guess, half so

a fixed-income for find primarily as FIMSAC volumes really regulatory met this have for the which the that and to the and to that that. platforms what And their you made closer ago, day regulated cross the week thanks that one and matching, systems ATS. I is just e-trading as report coincidently, protocols SEC e-trading well, to currently is platforms and trading revisit framework of chair quarter ATS for on recommendation and are modernizing primarily because the fragmented the look retail subcommittee consider technology, Sure,

framework current whatsoever. market, fit which However, the really with institutional favored protocols not RFQ does ATS has the

as So we regulated broker primarily in are today dealers.

framework so And on systematic the it e-trading industry, is a fixed make focus any make mitigating the important form thoughtful is consistently the make the to without redundancies. risk there applied emerges that recommended that that across income around and we a that FINRA and what that we there working consistent think is an for SEC framework platforms. is regulatory group SEC all the time to MSRB – sure that with And risk they're sure sure regulatory in and

other don't there see different if regulate risks all benefit that any pass the to e-trading really The pockets we that cost will continue them redundancies three be analysis. of that is of industry,

FIMSAC and So that half by was universally ago. supported week

Jackson's U.S. and a led I focus half reporting. this this a group entire as And and are thing be as as which this the public there in industry up for highly topic Commissioner we and good with parts do which it will in running participants of a practices ATS the working we will the course, second around comments, you fixed of that parts saw improving in soundness and I and market the view will on e-trading an Jackson's good regulated company public income. year. broker-dealer comments, the are We media, think you supportive, that that thing. think a to best that expect and be We as on saw be on for

good think fixed supportive. are will thing in a markets for this the we income. So be We e-trading

Got for the it. Thanks update Rick.

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

Your line is now open.

god Hey, morning guys.

are services takes if year? you the post-trade the some remainder second your of expectations like in services to the was be going revenues puts I for hoping, and what information First of could the speak in quarter? your to And and

was as prepared around variance. $X on several drove year-over-year sequentially II with new out what is When sticks drove remarks, thousand services Patrick. look customers million I them hundred all of more post-trade commenting services at that. around really couple a in which services you sequentially. the [Indiscernible] items, probably post-trade was side. the on down MiFID of and dollars, And that there's change, associated that Sure, which due And related

was of we did influence activity, fees The So some there quarter. a have didn't that dollars. a first thousand – on are then quarter versus hundred on was revenue it of strengthen nonrecurring where MiFID II dollars. there volume of dependent repeat clients well. hundred the couple implementation second are that couple variable as does That thousand a was in the And their dollar plans

So the those around and down tally services you up $X million-or-so. revenue post-trade see you

services. forward, will XQ. is do dependent growth saw the what quarters, to there, think we over And better the in it run look new a you clients on Looking quarterly bit going several new next and rate the than

QX the So that $X.X range look numbers, in at services. $X you assume going million post-trade to for forward, million we'll be assume somewhere if

which data On liquidity and services pricing, the our around data data, servicing up bond secured information was service Axess namely X% year-over-year. It revenue, All volume, our data reference it's it's is side,

per line, around business that are we expect that that recurring. that levels robust majority revenues for we historically look various The information have a do you still strike, fairly there year-over-year. services that XX% – that closure we've growth we're around of is And revenue and grown feel pipeline year. good If XX% vast of

the second I but Great, block guess, trading touched share don't thank I if detail. bit, know you quarter? in guys you little what trading caught I of for your was on a market block that

movement, didn't driver a pretty the with did right there, in a recall saw really there of quarter a of bit interest number first consistent our the of Yes, the principally quarter. activity in not but – quarter, were X%, programs we middle you where in full was, that shy We number of block little the of And bit second the the which XXXX. we in ended in And little first quarter. quarter rate just the what XX% that's the were so a trade in first selling were that the platform. up north we dated – Patrick, we the state second we were marketplace. a around of see first in lot repeat We in main year on short the quarter,

Okay, I question, a bigger picture great. And guess, final maybe a question.

do seen depth seem a Do of ready we've So point think the market in is up there that lot dominant request not remain of some of of Or market the like you actually for trade lot data of of quote be quotes maybe inside able is and had for you is It retail-oriented small, that period to the to suggest trading we're to structure quotes growth. the would for I protocol? is streaming off at a think the although where for quote. trading quotes. type think time? platforms, And there ones the that at whole trading be protocol of institutions that to a some that willing book streaming executable going move – reasonably to are some

It's spectrum. and question, of seeing Yes, at Patrick. client – it’s trading I increased a all you're think good levels automation the

a as platforms today. bid both those order be operate book whether is and a limit the system, or actively you with The platform get we are market that $XX,XXX, of whether the and it’s RFQ. engaged what on be Most around on the makers that that retail type, for are business view I institutional average on model platforms. very they're think we as not. $XX,XXX a our And are to understand their tend so retail mixed and sizes ATS understanding active or offers different central to business more trade and systems, it, to on see the tends ready Our streaming true than they the is benefit

now, protocols. been pricing they've levels on is not to the platforms there's competitive gone competitive they're for they're retail protocols. for So something through is clients right RFQ choose this RFQ think the that if from years. that institutional this able getting if full prepared more They've do that and there a the reason ready many trade And for liquidity more that is we they that technology date, I message have that from to much have to market, And to at see point. market time the that and for have they But From something micro-lot we protocol. today live fairly on. close to keep The environment, We mixed. provide. a we makers us add think that a is be it's eye evidence to base, standpoint, is to straightforward clients believe

Great, thank guys. you that’s very helpful,

Allen now our from from Chris Point line And question your next Compass comes is open.

Good morning guys.

Good morning Chris.

decent a in there. yield environment's if XQ. to relative high-grade high I July how It the give shaping the Thanks for volumes amount, up for share. flavor more terms BondTicker was the like the color you and maybe bit on could July to little Xth according obviously, of market us down but in terms looks week wondering of are

it's of terms has month the whether environment course the the or in month? the July the been progressing month to consistent how color back any in half maybe back starting it's again, up, just and So of just of the pick with

Chris. Sure,

at So look from year, And July a around the every we when July, market you same of volume tepid anomaly. it's that have been trading pretty standpoint. typical X

the high-yield the like, it, high-grade time, to, you If at second they different same running why looking get versus lower compared days, say, the looking now, trading and month days volumes year XX about market took July X% trading Right first, now. the answer. at so last is you at of the we're of right point XX are in U.S. credit

of a left but the new the ahead the slow us. would weeks unusual a the it trading calendar much XX-day that to in condition still from still [indiscernible]. not that a caution of anything, pretty have in other month, month. fall is really last healthier market guarantee it's days would of right X we July, think here down. five I just that I two X quarter volume pretty the bit I more the I And but from standpoint, issuance. little week was days of So we've have still is There's And seen Chris, a than thing, week, and pretty just guarantee issue left, softer, of first that could five and July was shut the What new much

the first than So different what that half little bit is you saw of in month. a the

Thanks, that’s helpful.

year, Bank That end world. right? from buying the program of a comments over expand of that the to been few bonds by easing Chris, their deal, this balance case slowly corporate around be across of of program personally medium Japan. the quantitive an recent things in quite is mature you've unwind easing term, one just had on world. allowing a the the quantitative around was and bonds. big we're a government to that bit, stopped and and The banks The the awful the and wind I massive has, ECB should Fed central They lot the the think seen of that's some little down. collectively the easing of quantitative sheet on obviously, And the bonds, a great watching ECB,

actually market buying treasury on no treasury issuing is start will the that And because coming to important will treasury about it that side over lot of bonds. a the in think and I quarters. the bonds an be longer the more event interesting So be Fed is the terms environment

that easing. is I improve think do this as So the of see market gradual quantitative that unwind we environment the likelihood will

similar in like credit recently more using you eye theoretically – corporate One Thanks. impact could bit about your thing Wondering in challenged, thinking whether particularly caught a Europe, news about that guys? markets. and recent a the and guys markets over derivatives my bond liquidity, there how how you you've was reports seen of being article are just action on that the be

underlying futures market. markets, have liquidity Yes. of In cash more the contract some the government European the than

been long So for time. that's the a case

We really Hasn't think more we the ball been related not slightly QX, credit really But surprising to primary impact lower so when the volumes the market which picks see credit we futures Italy up cash than is the the beneficiary on that don't same side. in did it's So on market. volatility. see case the during like a is side. market the lower

has EM year. year-to-date, there of EM where they more over the volumes But this our best of X% are last year. estimate caution markets from look in first half if course at you And the EM X% been is that or were down year-to-date

hiring Got of Compensation comp declined continues, that lower and the And numbers about question. from I'm seasonality. I'm guessing moving quick how first we But a of think do line it. trajectory variable sequentially some the obviously kind just assuming forward? quarter.

very line. so compensation was Chris, when is pool variable you're – Yes half the about wasn't our of look sequentially, at comp right. variable That formulaic. delta. a It you the And

tied So directly it's – it is income. to operating the

So from when direct revenues a you on have bonus decline impact to variable the does see QX accrual. it QX,

that line would an forward expect quarter. Going uptick of and the year, in second second half compared to at the we the looking

headcount looking those are About with the we now, of hires the about are start in new third new half the and to quarter. – analyst of our tracking right XX So at sales expected program. sort technology picture,

So number in third tracking to are of the quarter. here headcount a we join fair

at some So but half was in in that you range the some now. at prepared said and pretty But right half good you what expenses, when right you looking uptick we're still that we're if range feel what being towards gave, guidance swing lower about I guidance are there, of some the would in around I of that there. overall lower tracking overall, There factors it range. we at we you expect look guidance the now, comments look had remarks

guys. thanks Great,

question And William Shutler next from our Instructions] Blair. Chris from comes [Operator

Your now is line open.

morning. good guys, Hey

morning Good Chris.

of In quarter, high-yield in ETFs know puts the second for the have thought me? would high takes, that but I quarter the I that growing volume guess, little nicely up and with pretty have there's I could perspective market in the big yield some in more. of maybe always lot a just bit been put would share on that

saw yield in And we wanted. of did overall what a better is on And the bid decline flow community high-yield side, business. the high-yield ETF of the It platform We a see more bit high- We volatility in us, weighed percentage was we market. an our market. the important did the drop is when element toward second the volumes for volume. their on little bid Chris, our order do less wanted or quarter. track of

So they less little were active. bit a

that Okay, helps, Tony.

really Just on really to known how probably best days, other one. thoughts desktop? traders kind at in fixed aggregation data ALFA one you look early but Obviously, of bigger these risk And those? so being long-term get the your the the income picture question. Rick, in is I want words, platforms, it, view, to your from important the own competitive of some do

about industry. quite grow XX data is that a aggregation different aggregators the bit movement tracking numbers data Yes, on EM every that's a faced there to of the seems currently in We're and orXX quarter. across

more are there. solutions there So out

that technology trading it have clients aggregate are and EMS of I sense evolution market. ever only also we're to it's we data offering today, and think tools desktops sign data not before of We their to them to for on natural need tools the operation. available more and ourselves. make the a clients And think another the they it's aggregation filter

it expect end where very will going aggregation to early institutional to but it's So it's predict are think look up, increasingly and I all investors for to tools. logical

pool. And been done competition. Chris, The has make historically to very direct And a EMS and easier we've in I is may it this job tools for the important lack think people for that piece liquidity for of us, good all of differentiated time transaction But pricing that's pool innovating constantly different platform, passed for the us. differentiate and the we've platforms adding their and think the and to on of the available costs to to choosing. by in key our I test liquidity of order traffic it

Right, thanks a lot.

Thank have O'Neill, open. is you. a your Rich follow-up from Repetto line And Sandler we now from question

to this. date actual July to I volume bunch if you Rick, of is? your mentioned e-mails what a I'm But ask in you getting apologize,

a client Rich. curious base, You got

of touched Tony, week the in think, I middle on fourth it. July It right with holiday the the was an falling week. of unusual

and think look average high-grade I numbers, so the credit significantly in if at week. that during high-yield TRACE you'll see lower And volumes daily you

you it's then, to normal. pretty since look close If the at numbers

the this the an was but average. month-to-date that running thing that So The think share out QX holiday and it high-yield I reiterate high-grade bit significantly and all on over Xth running I QX that comments a share on quarter, would made below average share balances with only is week that a the above is Wednesday. unusual Tony already

three and into got trading, much So it's we've two read bag, I so case. wouldn't weeks of or mixed a at any too

Okay, volumes. up – guess, your back I quantitative on the easing. the of in follow on I and to did want and I the think, most we're us comments – trying volume pull understand to the quantitative

I through transition a the will it's more quantitative of in? whether here beyond you seasonality think volumes question to And everybody figure do board of just sort the is go go takes July and guess, like before think I think and things steps we – that the anything – down you volumes? low Xth you sees or trying with as across – easing this through Or do like feel and it that. this in out seasonality market is, incremental the over there's a so could do all that

our See, week And July friend. we the question volatility X, spreads, picks had that credit and in There vol over the very July minds, when results about is no soft a I interest company do in you best rates the vol pickup in saw We're it's think short up term better. and our ever in both seasonality. is and we has produced. in the saw QX a we

and here if you do a that credit pocket in think credit at is are will yields spread both volatility when be term, of And look better where now higher. the not So an been the higher, or but we pretty over spreads, treasury last odds they've lower, volatility medium bit will over right months. the I two interest stable our we're air and rate three

helpful that’s Got it, Rick, thank you.

showing this further Executive McVey, And am like further I to to you. I for remarks. questions time. turn Chief Thank would no call Rick Officer any the now back at

to talk of for joining quarter. rest us we'll you summer, and Thank morning. next Enjoy you this the

today's and gentlemen, Ladies program. participation in you for conference. This thank your today's concludes

may all have disconnect. Everyone, day. great You a