MarketAxess (MKTX) 24 Jul 192019 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 is being recorded July 24, 2019.

I would now like to turn the call over to Dave Cresci, Investor Relation Manager at MarketAxess. sir. ahead go Please

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

Rick Chief results. President Chairman review the will then McVey, For call Financial Chief and discuss initiatives; for Officer quarter; Tony DeLise, will the the the Executive Chris COO Concannon, financial and review new and highlights will Officer

their represent that may include by forward-looking Before I to are over events call call nature beliefs 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

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

the turn call to Rick. me let Now, over

record new Good second results. yield, quarter results trading reported This we Eurobonds. us thank strong for emerging volume with quarterly records by and discuss in XXXX our markets, morning driven volume you morning to and second quarter joining high

market Estimated high-grade Open QX fully was Overall, U.S. up was was up $XXX electronic trading volume Trading volume XXXX. billion. year-over-year billion compared to XX.X%. of XX% $XXX XX% to share

up This to quarter levels $XXX reached record with international trading outside XX% client volume, U.S. activity of the billion.

to the $X.XX. up QX a quarter million, diluted EPS to XXXX. for was income compared $XX were XX% and $XXX to revenues quarter record million Second was up XX% XX% Operating up

our recently we year. Index. anniversary quarterly represents that achievement. significant a of for accomplishment to employees results, celebrate to great XXX added as been major our prepare Congratulations received addition early news In our This next to on the to S&P this XXth strong a the all has company MarketAxess we

recently week the BlackRock, and joined Richie he in new valuable a announced as Richie was will Securities Prager from company retired Liquidity, we Directors. Global Director. Director He of for Lending. also where a has be Trading, of Managing asset Last a that charge our Board Senior

X EM. Market during feel leading tighten an makes results. even conditions Slide of conditions. in to market quarter continue Credit imbalance highlights which mixed about over the especially were yield buy better and treasuries us high orders spreads the to

with have We historically environments better market in widening spreads. done

to U.S. strong income. level remained automation volumes are due credit year-over-year. demand strong X% is and and TRACE the products for believe in the up growing this fixed We trading of

yields Trading In entrants treasury our volumes average in fee significant from year-over-year. also while growth as yield in a all-to-all this curve are of improve to treasury this remains new capture benefiting of flat, undoubtedly environment, we addition result the trading The from slightly credit trading. QX. pleased are declined see

QX, $XXX up Open in Open last activity. Adoption year-over-year. XX% highlights quarter. from to Trading strong another XX% up grow experienced X Slide XX% our of represented with of volume Trading Open Trading billion, continues year. volume

ago. second the on completed on price or million orders, price platform XXX,XXX drove year Trading liquidity X.X Trading quarter in responses were XX% transactions Open XXX,XXX providers the up Over XXXX. QX makers a from from Open approximately in up live

XX% when through in completed costs cost saved X.X savings yield second million average system, Liquidity on the benefited from an quarter points last takers Open Trading $XX of from basis U.S. high-grade protocols. they year. through up the Trading estimated the transaction transaction approximately Participants Open in transaction

around the year-over-year. savings row in estimated where the $XXX have an quarter saved clients up quarter, transaction million. we estimate is cost This delivered we total addition, of estimated a In providers third million XX% that in liquidity to $XX our

Open participants volume Open around XX%, market and for core and become emerging liquidity for a the increased up world four significantly up of MarketAxess. markets high-yield credit is advantage key XXX%. new important U.S. up has XX%, across competitive Eurobonds up with U.S. high-grade Trading Trading products XX%, an all source

our Slide X provides an update global on network.

network alternative makers domestically International of global both on activity and to continues Our expand investors, internationally. and dealers, trading accelerating is market MarketAxess.

Trading up clients up volumes the with compared an robust especially QX European impressive to quarter activity from XX% XXXX. were in was XX% volume Eurobond second year-over-year. overall

share meaningful in are we confident We e-trading. European are taking credit

active We up XX% in XXX market globally. international year-over-year. $XXX to billion was We nearly XX% over active a EM XX% local client on firms with volume market currently increase platform have Emerging the up have X,XXX trading. now firms,

Across the with well Penetration sequentially. more trading active now as across products products. continues clients of over increased number all or products, to clients three XXX grow

We value see believe the of is to are business and results continued that our proposition of growth excited with confirm U.S. outside our these clients globally. the resonating

an Now initiatives. update on trading and let me new provide turn automation to to over call the Chris

Rick. you, Thank

trading use automation million algorithms approximately for continues slide dealer see, demonstrates expand grow the to algo both can with responses increase our MarketAxess an you rapidly trading on in and trading. continues automation momentum dealers clients. a investors highly XXXX, X.X As at institutional of our and tools. year-over-year embrace growing of platform to environment credit the Automation as XX% competitive QX, X The trading trading

functionality in firms trades was year. last platform number from large managers same up generated using the a well. double auto-execution year executing asset auto-execution activity as This trades global quarter, is period trades XX,XXX this by via investors using same auto-execution of Auto-Ex by the ago. place rapidly use than the XX of took on feature, period growing XXX,XXX in The QX, our In our investor more

continue to as believe we while automation investment drive that benefits other increases improving efficiency we turnover in in market investor dealer to witnessed will innovation markets. importantly, higher trading rating, from our we of Most levels the the area. automation market cost structural in in of believe this that to trading lead will continue across We levels clients in credit our and higher

our Slide business and X initiatives technology solutions. new outlines

are new number and initiatives on We working to today. would a like highlight of we several

clearing to some self have time. analyzing the for move We been

of growth the expect Given U.S. agent scalable take to lead we made variable savings settlement clearing new have in half transition to a the cost decision outside create cost a This to self year the of and transition in more the open we will structure. which engage place the to next continued U.S. trading, of first significant and

We in also believe coverage our business. in settlement fast-growing local agent a critical emerging will global be our expanding market markets new

Live ultimately the all-to-all year. for that In new and provide liquidity of on-demand book we driving streaming of terms Markets savings. launch Live dealer order It and liquidity for developed this are transaction institutional looking transparency market. with forward dealer is to an improving the was greater later technology cost investors clients, live enhancements, will our Markets

fixed the competitive We to clients streamlined portfolios, portfolio large create best the will launching of also to the income price transact trading and execution growth market be growth and proprietary a both pricing across recent solution fixed will protocol of for demonstrating to solution with while analytics. in and income This portfolio data a respond our customized income trading ETFs. fixed

to investors partnership ETF provide the in second execution ETFs RFQ credit to We with market. Virtu's have become institutional global also our with we quickly In the of deliver in quality to seamless liquidity a will access achieving with announced solution believe important ETFs. grown new for feature quarter, Virtu cost-efficient our clients a an secure the in global platform. partnership landscape hub

credit and We support are excited to trading the solutions evolution as continued in evolve. be clients we that technology of to investing you forward will and innovating updating for initiatives our these look

Tony to in over financials call more the to turn me discuss let detail. Now the

Thank core experienced volume a up of quarter products. healthy to slide billion product to volume our you, were as Chris. and U.S. we XX% up for turn trading in summary across gain combination of growth across volumes. share Please market volume four high-grade trading higher Overall on categories. XX% U.S. estimated TRACE X the year-over-year trading of was our a $XXX high-grade for volumes each

large volumes year-over-year category in credit up estimated other share. Our due XX% to were gains market trading in part

six were remaining, emerging the in quarter far level and High given favored U.S. corporate an estimated With volume, year-over-year bonds share substantially markets, while second products, inquiry than lower high-grade results second Yield tracking the that quarter significantly is during satisfying our XXXX. higher these rise volume trading month-to-date trading buying. second The above European particularly market July mix the average Our level daily client quarter important July in days and July market than the volumes. gains outpaced overall for

Post uplift summary revenue year-over-year. currency X% and constant XX% The On in up trade of a up was and basis was constant we trading in Information on resulted performance. on X% a in XX% a volume provide slide was currency basis revenue X%. XX%. services commissions. our Overall, revenue up earnings XX, increase services up up XX% quarterly a

both XX% the year-over-year. between compensation quarters. share-based XX% tax tax second related XX.X% up excess caused benefits The and to in and were the amount tax Expenses the effective versus operating effective EBITDA rate movement quarter second quarter. up first the in was awards recognized XX.X% were of income the in The first rate and

expect of the range was XX.X%. the While XX.X%, low be XXXX year guidance the tax the rate first rate end year our of half will for full of we for the tax effective near effective

the diluted Our $X.XX diluted increase was small EPS from on a share count.

first favorable somewhat in lower was was Total commission slightly our variable volumes buckets. $X trading and up per fees fee we size million U.S. were year-over-year, from and XX, by driven the a up yields high-grade per have slide as revenue impact volume. to level mix from largely transaction XX% On longer by fees shift million. out maturity XX% years trade trading offset increase quarter in the laid the

$X fee on European volumes other yield decreased sequential Our per high quarter. during from The million other the to credit emerging credit credit markets, was contribution little by changed and basis. category a

U.S. fee mix resulted in sequential shift emerging migrate dealer and the high-grade capture. dealer in the high-grade all-variable had a decline plan which fees. the decline small We to a one markets fee second from in distribution fee quarter, high-yield Our plan accounted U.S. during distribution in for

support expense provides the personnel our absolute year-over-year for the of were Compensation than detail. On to year-to-date. up accounted with for more add initiatives. year-to-date for XX% in continue both growth expenses expenses quarter XX% the a and we change you and and Slide the up as XX% quarter, basis to XX benefits

of compensation Our year-over-year higher the higher bonus benefits. compensation stock-based provision the and expense rise variable XX, in main contributors were to headcount in and increase

our freshened We guidance refined the range now year resource expense important and of high of described expenses expense will those near initiatives believe up on full Chris requirements end that $XXX and have that to up million. the execute XXXX necessary forecast end the variety including of a

senior with hires don't And just retention to includes uplift of XXXX remind in type activity. you that $XX We and this estimated associated repeat activity expense in the to million approximately expect XXXX. expense

XX XX slide information. million record On a sheet $XXX trialing of cash flow as were and months free we Cash XXth reached provide million. investments $XXX balance June and

During a the program. of XX,XXX $XX paid and shares second under quarterly cash our repurchased share buyback quarter, also dividend we million

flow to our our requirements operations cash growth in and trading opportunities principal deposit returning allows cover near-term. earlier growing reserve shareholders. commented from handle have capital sufficient clearing believe cash that or and the that simultaneously to to new settlement liquidity us in any on Our investment regulated while businesses Chris mass increase organic We initiatives.

quarterly anticipate shareholder regular quarter dividend. results, return a any programs. do not board has approved also the Based second in our our on $X.XX capital We change

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

In volumes, happy never our and new been long-term for stronger. Open cost investing environment Thank client products. opportunities We're client e-trading for products you, growth transaction this QX trading trading international of demand solutions and driving order are new growth revenue Trading to to our demand trading increase we and revenues we Tony. automation in across the actively business growing achieved in in maximize is earnings. with leading has shareholders. is savings

to open will Now, for line we the be happy your questions.

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

Your open. line is

and morning Rick and good Tony Yeah, Chris.

forefront the of electronics First income. Prager. at the and add on to He's the convergent congrats of Richie been fixed

So addition board. your to great

when on question Can be the and first can I clearing. is will -- that you it But self approximate the savings savings approximate maybe missed implemented? think it. I you the

So Tony. Rich, it's

of third-party been and principal on it's revenue look to clearing and at So broker metrics And sub-clearing of we bubbling one XX% we a the trades. today a clearing percentage open the as trading around use cost we settle initiative, open or revenue. match principal when trading that's or XX% XX% the of clearing use,

U.S. the to model in So we're the going self to clearing move

of improve outside support better. U.S. out better the You are it even the that to what's also is markets settlement scale it's initiatives. our structure, going important customer service heard will emerging that changing we agents and And cost But

-- we're there here. benefits So are multiple

revenue, that at look as in particular use clearing costs you we we metric metric When that single percentage drive can the of into that cost a clearing we digits. believe

think year. So those on again half digits. down exact date it's single It's or hard XX%, if course in we over the into the it's XX% can some but the get XXXX. we of flow the or XX% an time first expect Exact it pin to savings of through to date

globe. that of add. major it's a to counterparty commercial because Rich, we just It's out And the have a broker-dealer Chris. we’re of to well-capitalized around I'll the some needs important point institutions when the

being capital And now is fund activity. so deployed for deposit clearing as that our

is for immediate further the reasons. an see commercial broker-dealer it overcapitalized because need to So we capitalize don't

our And so variable of trading. reducing and balance our that's broker-dealer on we're sheet sitting leveraging costs capital

project to the So agent savings our great rapidly. us in of not continues us an to can which only is our expand. you global allows delivers EM the and as it's change grow EM, that local to important There markets one that expand see but a point, allows

it trade rate I there. a as the what those in Got movements, either was my question regards bond on -- there in curve unique follow-up guess takeaways interest people far position this yield you're quarter is environment? I the unique -- happened what from electronically that we the guess past -- type would was be it. as performance Got and to of is things in the -- way to of macro, then if it this in for quarter

Brexit -- impact fundamental for And would on certainly thing hard you potential some Rick? the aren't think comment I out Could that other are lingering macro the that's these factors now. of is you but that

commented when spreads we you Rich. where biggest in to. that's market remarks, were the deliver happy prepared a widening macro significantly I'm the Thanks I The at Sure. environment look if like QX quarter gains. share typically

are quarter. half basically first what So entirely from year the spread the of at when tightening by a spreads and the encouraged environment look been have it's recovered fourth move this we consistent almost you is

second we half volume case of we really course, look it's to are in volume now levels it are we us midst yield confidence client environment yields the for we And offer So be gaining secular us hard to into an expect lower but there behavior trading search to toward great the new automation the trading. and it for as gaining half. mentioned. issue a normally second have going that seasonally the share would you and we more on lower of as in wanted a way really is where it's and than of globally, gives the what be and of the spreads at are change first lower half was predict, in levels that electronic is in Because for

for to any Clearly, are are of we Brexit that years very outcome. odds Brexit, feel we several we view week, hard ready respect With this but increased for the to and ready is we've good that the have been go. a preparing

have our day. We the trading in in set now our and all Amsterdam entities up MTF have we Netherlands every the regulated of EU in through clients

it is about similar over. Brexit. The in as our MTF And very Amsterdam we So we our switch U.K. to liquidity very for experience good in are feel is ready the preparation

Got helpful. was it. Thank It you. very

comes our Jefferies. you. from Thank Dan Fannon And next with question

line open. is Your

description would with couple more The banks A of a business compete seems Live questions initiatives. it directly. the new like on Markets Thanks. the bit

after talk in offering issue, more new terms about please? that of can detail in going you Just

it to to liquidity, actually compete not designed to which their designed dealer response is help have built It's what banks Markets the streaming the banks. with seeing provide Live in liquidity. on streaming they Sure. side is today RFQs. We're

about only So for the a first it time orders What's market. banks, to to investors not from the the market. to ability really and both being end does Markets, it facilitate most bond banks liquidity the non-banks rest of liquid in also it unique facilitates allows driven help bond across but stream the clients Live

If about Request-For-Quote, where the market for it's you a in community by asking income, driven the global fixed overall think are price. a clients

the Now all a bond able where will clients market in orders. place in our the clients Markets, we from rest a market. the available obviously future's both orders the Live markets critical be It's and to that's where and that investors that with function to can function granted clients market take market for globally other equity can is rest of orders introduction that a missing been has

dealers clients price We are rest to a for with place clients. building stream to side-by-side orders to

for I get follow-up on obviously next just year, the core high-end in, about and A have $XX self-clearing where in you said the Tony, of but coming retention when the the ongoing expenses. you the the you this think rollback thinking Great. business. Thinking investment year, for roughly million

so of from perspective, about be a XXXX perspective an should growth how helpful? think we directionally expense from or And just kind would

It's and early around I to invest. that an retention to it's that least the to at one, specificity. likely we're Dan. the remarks prepared repeat about exact million. higher have just And range going right first talking in couple Wow, prepared in XXXX a But now, for not XXXX, we're while to and some think not the activity, of to give that senior mentioned activity to was we items about start $XX -- continue

are we growth are the what sure looking and in invest not us. for and we term We're shareholders opportunity in to make on want that's the people infrastructure continuing front playing capitalizing to for. that we're of short this and to support our So we believe

invest activity. senior higher the So going continue we're to to

another we're but on that, I President the do sometimes about base, President. we wonder not it's While don't although in hiring another hiring intend

hope you If so.

you and this also clearing see will initiative will arrangements. while the you for will see be changing benefit not QX through And it in clearing come

will all of see of you're seeing us XX% I'm of year-over-year that to like it's back increase pointing the right coming give some think tough if would you I now, year, out those So you range an little again the you this through with in definitely that expense half be surprised saw I items year. the -- a here. bit but up

You're to in again XXXX. see not likely repeat that

a the the is process. on to investment And out the requires end of front lengthy it at initiative, Dan, it's your important it so approval point process, self-clearing

So and be in date. to way need people platforms position launch before

So year this most will in of rate next this that half into happen investment year year. that the will run clearing self first you'll and a of in see follow

Great. Thank you.

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

open. Your line is

can Hi, then, capture And dealers? address? net good in story incentives of will morning. you Live Can If I place know focused percentage offering for that ask out you of I in bonds. the on need frame issues could share total market will of it's the follow-ups rates anything trading may be where couple to on new secondary this you that and just initiatives. the Markets help shake think any terms the and

enough Sure. Happy have part And is deals large Markets and we've the the really calls market in are that newly benchmark other one. very focus market And end trading Live which But is trading at most interestingly done the a in in Live to share. best us way I in previous share. trading, that is liquid the on morning. Markets bonds bond block issued clearly take good liquid market -- of our clear we increasing days. throughout corporate for of very trade where that not as historically Kyle, is aimed said other

trades to trading make our Request-For-Market result deals, XX% you markets. in seen protocol the block initiative of if is of we When we and it's block EM And is improved try a trading some in similarity the TRACE, think Live investment of the percentage and of of very What terms attributable trades market. have and EM probably bonds at we the block now the total growth of in aiming trades at what up part is in there issued volume. Markets the to around with the especially in here our significant newly market significantly local estimate look that large TRACE end benchmark liquid percentage in

offer exact, market. capture, It's offer bonds. but in real difficult the of that these part on increase to tied is today, of the to we these We're a a part significant of active but Fee it's market. bid share to chance think course our tighter be bid protocols is there have and

that of we revenue lower of expect trades of would fee this additive will in would course versus are that lower, be the but and suggest market combination capture we bid So line the part today. where larger it's all top offer

Okay, Rick.

is think something in to should grade we be half clarify, that? than Just capture the it about of maybe lower fee or high

to wouldn't are It's know the of front I be would mark, on far that too in too still off details it. that specifics but think early those us.

Okay. Great. And -- auto-execution. be this then one may on just

volume Now of rapidly. only which year-over-year. substantially total still But grow of really up in it think to your terms is around volume, X% continues I it's

more? where if frame think side wondering as could percentage volume total a something go buy years you Auto-Ex it or a half or could that three or a It's MarketAxess' be five of in their that help years Just quarter volume? can you

comfortable the take they the it. that involves that. complexes. fund across ticket million adoption see once adoption from either I'll We client large adopt under sizes million. It's firms Sure. of $X board smaller are or Most under Chris. getting most $X the of of most And

We investment penetrate well. their do other would trading auto-execution products yield we as across expect and more to high bleed firms see activity into and increasing to of grade

on platform get the you liquidity that size comfortable you liquidity delivering think price we and smaller the and are comfortable with are munis you're If about auto-execution. which much trade with provided the

penetration would growth volume see it of much total our adopted suggest which with higher higher rates percentage have we a So that being Auto-Ex. the further clients

to We those side responder of at similar still an solutions their I the think are it's where to the one trade important and able to executing that responses. auto clients are is that's to respond Request-For-Quote client out other auto point Request-For-Quote. looking that

to we continue So hear much that there a will our auto-execution are that and drive volume. continue to to solutions of we overall clients the variety higher auto-execution analyze percentage from of a

Okay, you. thank

And you. with question Hill our Rosenblatt from Ken Thank next Securities. comes

open. is line Your

Hey good morning.

But I is So you my fourth go opportunities so next the these got guess if a investment a launch project identified. the that back guys we little expect right look initiatives, first know are the initiatives. kind or of bit I'm kind question to guys of of of have you for for to business over out new are what I be launch wave quarter. couple focused beyond here seem areas of to market and guessing the that more juicier that on in time?

Yes, I the we about years. next the five investment nice over to ample is part the three see space for opportunity credit think

in stages We the credit Clearly trading of Asia beginnings greater region. adoption of of of are electronic us investment electronification pretty still the given is early in markets. the area for an

trading mortgages that demand has early would in for and electronic some muni also we the bond backs to We're we and of trading, in very product. non-agency additional input like municipal structured our client marketing product including asset opportunities see products. bond electronically. we're expand growing getting The stages at And credit trends but

automation against matching demands looking increased a opportunities broad both globally for at So we're we're from that clients. our dealer/investor of and coming menu

in see is terms in So space attractive we of front number us. an of that opportunities of it the growth

Request-For-Market would wonderful that versus requesting our add market seen been in clients single-sided seeing And continued Emerging and Eurobonds that X-sided a growth our are I growth here we're a today. where Request-For-Quote. in just driver you've rates Markets Rick, That's

from functionality mentioned. to features request we just Auto-Ex in investment And So we're the similar in a expecting further obviously investment market. that

because to request rollout continue these I changes we all small small investment think that's as a clients adjustments multi-year features.

Okay. think the And Refinitiv in but on guys had partnership. that earlier I was year announced one data you wasn't the thing slide the

on any early traction Just we been wondered getting have guys if could the color there you that get back?

And substantial distribution. massive it relationship important -- produce without we investment. Refinitiv distribution. that On great is of global continue because data making to for their about it's relationship what's really Sure. is about us The an

relationship. long but products. sell -- seeing our takes the activity in key channel, so we're lot seeing year cycle do We're of to out lot Again of it And a that a more life that around distribution that a we coming to activity. through of distribution data activity fairly expect channel later through see

Thanks detail. the for

Miller you. question from And Hugh our Buckingham. Thank with comes next

line is open. Your

Hi, my around the we've trading. greater where thanks of adoption that's and electronic one for I had market taking questions. Eurobond area seen obviously an

gaining have guys You had share recently. more of lot success a in market

in get Are Just they way? of react space maybe try you're just -- that and success having? competitors to the landscape seeing if in a changes their sense share that area? any wanted of some you're Are in competitive and you their Eurobond terms making seeing protect to the platform to anything mimic in of the

that are active it's on couple European are of U.S. our calls credit in as a responding clients And trading. by trading. in think European value beyond proposition clients we've to well as past well emerging Eurobonds. of trading European I extremely in way, suggested as parts MarketAxess markets the

offering we're liquidity from different the Trading driving Open transaction clearly savings. And is of that broad-based dealer combination unique solution liquidity and cost liquidity is and But competitors. the is

And pricing for one part I the and market to and terrific I global point winning It's real-time region. think year. share of big in data that's we're a activity using also the data trading would and gains to drive we're why we better doing products best data the free which tools credit awards trade CP+ price has been for multiple this European have markets. including of clients European discovery

in in transaction pool costs dynamic of is and I high-quality change. driving a the down changing really a unique the meaningful free-trade So reliable it's liquidity and that Europe think combination competitive data landscape

are our You we can that we are European to come that clearly region. that the share. us volumes they that more and reporting success for having that with the see are excited the And is given competitors some we're there taking of in

in terms of Thanks. in end the by there guidance is the all the expense the in of That's the half range. just market business there it just just increase of investments? the half? to towards the the assumption then the update year relative second activity helpful. first And Is the primarily And really driven upper on an change

it's uplift benefit required There year initiatives. fees, in say of transit. of uplift Hugh, is initiative up factor. rest is that to other like forecast several But Like costs. activity is that freshened people-related, the large one. by although wouldn't is is I for That people. some the we're Tony. mix. in a these and implementation at occupancy there the When there resources items Most the swing this it's of execute clearing line on even of related market clearing London. all it items programs the number various the looking is is the into is employee there went we There

Got helpful. That's you. Thank it.

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

open. is line Your

Yeah.

Just -- Tony volumes. July just a quick follow-up the on

-- volumes that The -- any wide is to they additional last I said point it, July-to-date? were you volumes were get range last they pretty year compared XQ guess. but is from color were could the You weak on which down above very year,

Yes.

market down July volumes than environment higher second the actually and what going daily we volumes which an quarter, with there are market from to to are -- It's give pretty upper So means, July while the market word average July, the have happens boundary every and substantially decipher billion the XXXX. XQ end substantially in QX, at to higher and healthy. the June volume commentary of in seasonally $X.X the

look So it's volume you X%. U.S. month-to-date about up high-grade at market when

six Xth you left also trading have of have Now remember, in and impact have July July days Xrd the and there. to we we

Eurobond markets are than look them at month-to-date, emerging When market more XX% even three pretty volumes yield volumes market year-over-year. healthy all high in up high tracking grade. of are and So you

ADV -- we're second be is there below will the there. while we market volumes quarter, typical in So, remember saying that got July, tracking which is for very

well the We said share market is U.S. quarter. also that second high-grade tracking above

boundary a for to kind put it bit specific hard not a but that, be more little we of than So on you. of

are Xth days you volumes, the heavily but improve and across month market Xrd all weighting on. July, but this structure platforms, your holiday And remember the see Rich, this impacted goes at trading down market as two July July of that will point

the quiet pointed on two share. look So, you And the looking if Xth, positive really overall, are around market really year-over-year are have share Tony as solid. you market did but days trends gains out

good is and encouraged a we're to So start. off quarter the

have? play? Got it. streaming Because on have Or It a where go for moat competitive you say streaming a it. have also -- the -- I have how platform model? fairly Just as like Chris of much how market U.S. every that question a the be volumes? weighing think And as you platforms much like guess much it of you much question seems take a do like in -- to but equities you portion Chris and in well, comes to is be pool like dark volumes RFQ from The seems I you is it Monday as think you it's a Got in streaming a have of how liquidity is anyway. and -- more competitive do like how would The the will this you it? can significant small trying well. market see Rick but already, for have competition don't

we think something good access to our global a feature Markets have else Obviously, important credit question. it. don't anywhere market. it's to see that an don't is delivering and like something they we're the that Live It's So clients

credit So global it for is unique the market.

and comfortable interest get clients in is quite to do pricing We that's platform bonds. I a as really using it pricing allowing the just something think dealer’s clients on think their new interest, innovation more their comfortable market up slowly well. will as get to credit as streaming ramp them Click-To-Trade

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next Jeremy our comes Campbell Barclays. question And from you. with Thank

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comes next Point. with Allen Our Compass Chris from question

open. is line Your

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

open. line Your is

morning good guys. Hey

with are what current Chinese your on curious on bonds. opportunity thoughts So

corporate U.S. are be to rate Chinese rating that I going onshore that now think allowed to particularly debt? agencies

for it's Bond think in know significant I us opportunity their being done And opening the Patrick, through and days of investors that also income the extremely as a you is early and global it's up fixed hub. Chinese Connect new market. for

the of trading Kong Exchange. are government you it to new we bond deliver at aware the Hong they available Chinese size increasingly look we But that dialogue income world. the have will Connect, when We of can market, for the And global both optimistic trading. Stock decision-makers at to one PBOC that are Bond help the that our increasing onshore of and with the around flow investors opportunities be order fixed

something Great. And up to earlier. maybe then, on you said that follow Rick. Thanks, Chris

velocity belief seeing forward? turnover. talked in of it think that we're Do Or place is your it your taking more that this or that increased signs take place? will that it's expectation already about you going will result trading electronification kind You of

declining signs look of showing think -- year-over-year the an market you turnover, do I the if turnover at new turnover comparison. is the overall in issue with increase

it automation it's signs deliver think that as at small make increase hopes I we platform. of will we I but I can turnover So, to more a the that today, still when so look what as delivering we're compared do seeing we're higher that it, efficient. have

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still like, are So, still there look I it, tool. in while but many signs players excited I'm when out early I are it's automation really have automation that done of about volume And think small at what of the major markets we and still the days. I feel testing

early are there signs, it's but So still days.

Patrick, And I'll just on follow that.

two the that that couldn't over next last benefiting that or influx participants of are significant credit three story to come the participate to in not new to definitely the addition remarks, model. of automation nice see, meaningful. the that we we also prepared I Chris we And really we old In growing mentioned pipeline expect only is years, from seen the the have a increase in two the new market in quarters participants outlined, over

turnover So, through all-to-all future. really I the base much a the think stronger for is market through market up protocols in opening building of -- the market

you, much. Great. Thank very

would And Rick Thank for you. turn to to call the I back that's we all Mr. time questions. any for have the further comments. like McVey now

much talk of next this you the We'll to morning and the very you us joining enjoy rest for quarter. Thank summer.

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

great disconnect. may day. have Everyone You all a