MarketAxess (MKTX) 22 Apr 212021 Q1 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 on April 22nd, 2021. 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 First the XXXX Good

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

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

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

Now, let call me to turn Rick. the over

you Thank us first our earnings joining for call. quarter for

core million revenue products. EPS Record operating record up quarterly First income driven credit a primarily XX%; was of revenue gains up of million, our of share $XXX reached quarter $X.XX in new was X%. $XXX was and XX%; up market by

new record in XX% to well different weeks International XX% this and New growth our year, and year an $XXX and QX In market full feel It conditions. total records market significant records very is was the of to municipal that revenue, as up left on grew trading onset of important volume, five activity client market was savings of top had trading light we cost the as quarter. high-yield estimated volume Open year-over-year market earnings in billion. volumes delivered The volume update conditions million. trading, how to the credit quarterly were were for $XXX of provides transaction markets, one bonds. this pandemic. reached set a elevated for Slide new volume remember volume and clients about due emerging Eurobonds, good the we just environment the year, four last displays ago. chart credit difference

thrives Our spread volatility business when increases. credit

wider. During QX year than times and XX were spread spreads high-grade credit was in points volatility this last year, credit nearly XXX greater basis

Average trend in maturity bonds investment-grade quarter in historical similar five provides traded reach New a to for years the range reflecting an Open continues system XX of issue TRACE continuing during the Trading. the QX year. this last activity was and toward quarter. at on high to up on end Slide climb were secondary update and higher market strong X% volumes high-grade turnover. to years the

excess XX% of Our Trading in all billion and market-leading orders XX,XXX new increases per were this XX%. day marketplace products. high-yield, day $XX per trading all-to-all year-over-year. an show records in of emerging initiated volume over open orders notional Open value set in grade, healthy average markets quarter High open-trading totaling up Dealer credit with

traditional Our represents compete trading. trading client we effectively X% in now as our open and of with trading segment credit of DXD credit business volume revenue more this competitors X% DXD through

found traded per Trading billion $X This new record a ADV counterparty, price Open of in a with traditional orders up XX% reached open system-wide Trading. dealer quarter, one-third Open our year-over-year. improvement two-thirds day, while of

million savings cost trading a of For our the revenue. were excess fifth transaction row, estimated $XXX in to clients credit quarter of total delivered in company

client update expansion. product to and to Chris, an on over me Now, let turn the call provide

product offerings. our highlights the year, bolstering global of remained past expanding touch Throughout will a focused Thank expansion. we product our have I you, our growth on today. on Rick. X international these Slide footprint few and initiatives and

over active our and an by clients international volumes, client with first was volume driven in by growth Emerging XX% across continues volumes from credit markets increased increase XX%. up global clients year-over-year XX%. Eurobond quarter, increased products. XX% international US international by XXX volume Our In the

Our also XX% significant ongoing billion, to the investment in past in the of region an clients number as Client the volume. Asia first increase of year. XX% in the number credit over XXXX, region the Pacific the from of grew grew clients from by delivered in quarter and region $XX gains volume up

expansion, encouraged in larger we well a positioned making are growing the are our quarter, of we bond municipal of with again in we we total the offering. credit by municipal we volumes, first In from progress ago. to up of volumes continue record the are XX% the global a $X.X product We area trading In the share believe, see capture to outside US bond hit billion markets. year momentum a in and

acquisition and rich for venue, the banks central MuniBrokers, large provides our -- market. electronic brokers content of bond released municipal acquisition also in inter-dealer growing We business. Muni with client The a serving closed and dealers on the our expands recently connectivity

trade to to in also grew in while XX Europe, Our firms SFTR data in X post-trade largely capabilities firms have extending strategy, over acquired and up functionality. quarter, our XX Slide of Auto-Responder is The well new platform. used XXX,XXX, billion up and additions the prior from business quarter, up organic business, quarter dealers first regulatory automation utilized last the of first Regulatory We up revenue quarter, services. strengthening the automated XX% first integration the the Auto-X an in volumes client $XX our $XX the further continue in in unique our demonstrates billion from in XX% count important and of grow quarter Reporting across XXXX. offering. QX by across with grow post-trade driven our XXX rose our continued post-trade Automated recently continues reporting Trading. Automated Hub XX functionality contributor to the to our post-trade momentum to our Auto-X our underway while clients. trading our and of leading Credit year. trading from responses year, is data now

from adoption of of We first Auto-X in of grow platform. responses, high-yield markets. algo year. dealer are in to the The the XX% same increasing up the X.X continuing the following seeing of inquiry emerging period last use last decline also growth first year. responses The across per the has investment a grade, platform, half of million and improves Eurobonds, on The the responses ultimately with algorithms likelihood across execution average is quarter, healthy in number resumed, approximately the

credit, share demand our continued electronic trading overall the we in for growth solutions. in seeing and of As trading are automated global grows

We to product our are sell-side coming forward solutions clients offering buy develop categories. and in X, sharing updates innovative continuing Slide trading quarters. to provides look environment the summary in to our automated a across of collaboration trade I with our and

were XX% were to Our due category percentage high-grade increased for estimated Estimated across and volume quarterly market year-over-year Volumes $XXX XX.X%. to up X%, up up market trading share markets, quarter, US other $XXX US in volume billion volume share an up volumes increased to market gains. gains bonds municipal for in the share increase billion high-grade X.X product vast Eurobonds category credit emerging point’s high-yield municipal account up majority the achieved our XX%, year-over-year by volume XX% XX% in up bonds. each with we -- for to yield XX%. XX%, the high were share the Market US while volumes largely volumes and and year-over-year record and markets quarter Eurobond increase emerging of up market

are beginning rates for Our XXX launched now maintained click-to-trade from to its business XXXX approved both see and to and volume offering. contribution market our our rates dealer-to-client share protocol new our compared recently clients dealer-to-dealer QX trading initiatives. Over are we hedging of

with any month. far of early April, full Regarding left trading seven activity full it in conclusions April draw on too to days is the

QX our maintaining However, TRACE market currently levels is below volumes market to share QX. and running similar levels are

me let on to Tony financials. call to the our Now turn an provide over update

million performance. clients The Reporting provide acquisition. compensation as trading level commission was losses volumes. fees The year-over-year. of and we margin up quarterly up duration in million foreign over muted the was rate unpredictable losses, year-over-year. transaction XX%. XX% quarter. guidance $X in record to including from Hub revenue, to in more items up shift bonds Absent a and XX% higher includes operating sequential we currency and volume XX% than XX% on principally impact quarterly volume, million state like fees and decline our platform $X fourth $XXX,XXX. hit summary quarter. we was volumes services reflects of a lower a Chris. in higher gains excess a per decline the to awards. reporting in full by expense estimated a Post-trade capture the trading was Thank resulting tax a York transaction year-over-year to per estimated transaction commissions. fee increase have The was increase revenue majority longer rate, first range corporate of trading out decline transaction the in size. $X.X trade doubled sequential tax from X, tax effective record was $X effective US New the foreign the XX% first offset credit a would composite expense uplift in our and on tax slide a transaction capture high-grade per On of we Total million, were related in XX% several $XX.X high-grade was maintaining years was our are year-over-year. of versus was you, in driven but traded by fee to US dealer-to-dealer through fees run XX% factors down contributing expect of due Regulatory XX% $XXX variable quarter quarter to earnings revenue rates million. the laid On treasury's gains. to in $X benefits of On led income level, investment currency were EBITDA the includes Operating bond Other quarterly added year the There share-based and on share increase rate and US fees million recently fee million million credit around XX, yields. The basis, the basis first the other the $X quarter. market trade market maturity was enacted in Inclusive in XX% to quarter Revenue slide

quarter per the category fourth credit fee consistent XXXX million mix along of with at these periods. quarter similar to both XX you product with capture very was the individual other $XXX level was the XXXX Slide and across provides fee first detail. Our Product expense levels.

Reporting Regulatory and Hub business. up of acquired non-recurring expenses, $X.X year-over-year include costs quarter to were XX% and million of operating intangibles expenses the integration First related amortization

due expenses on Excluding associated activity, of the acquired with and a integration and currency and increase year-over-year and is in benefits including the basis. constant due intangibles. consulting an M&A of development, growth The professional transaction our The of regulatory to Reporting reflects personnel Higher up transition clearing Hub variety in costs compensation XX% up costs were in XX expenses along amortization projects. headcount with of in our depreciation to support was in and XX% consulting product initiatives. continuing settlement increase a amortization and investment factors and the rise

UK. clearing While the the we March, of project transition the increased settlement our new were with costs In to completed overall Open XX%. a phase Trading agent XX%, second volume in settlement down

improvements I'm costs measured we expect year-over-year. per report to the year, by third-party basis ticket clearing that balance declined a Although, cost further XX% to on some of realize happy over over this

on As acquisition MuniBrokers closed the Xth. mentioned, we April Chris on

in XX% We expect will XXXX, be million intangibles. amortization which will of MuniBrokers expenses around of acquired $X be

to Cash year information. the balance million are our incorporate flow expense and were XX provide On updating million expense reached to $XXX activity. XX XX free range We $XXX investments Slide months MuniBrokers $XXX at to March we million. million full cash guidance trailing and sheet $XXX

year-end $XX and a of During $XX million cash taxes of employee bonuses related roughly and quarter, quarterly the out we million. first paid dividend

resident quarter, the borrow a didn't has the our capital regular Based the We associated the our investing ended net self-clearing the stock regulated also quarter approved quarter the MarketAxess of first entity. awards. with over which period repurchased were excess of first results, and Corp, with $XXX employee of quarterly $X.XX We credit facility majority during Board shares XX,XXX the million in revolving against dividend. on at

the turn call me Rick. Now let back to

is investor leading Tony. credit gains clients you, QX. MarketAxess results Trading and and Market products and Thank Trading is credit products with the Open regions all advancing geographic share our across in dealer automation drove in all way. both record

We continue sustain to growth. to areas emerging government invest Asia bonds actively long-term in like municipal bonds, new markets product and

the trading progress also protocols. pleased making electronic with new are we are with We

happy Now, for line to I be would your the open questions.

Repetto come Instructions] first Piper the will from [Operator question Our Rich Sandler. of from line

begin. You may

it to trying it's if just quarter-to-quarter Are XQ Yes. maturity. whatever can duration rather understand But -- is in question guess million. I is fee guess? the And -- Good morning, trade is We the and believe? the slide Rick you and to it we're see shows easiest parts. per you the and -- And that than Tony yield to size helps XQ and But X Chris. question -- that I can I Tony, explain easier mix. big yields guess year-over-year believe I moving know the compare the review I occurred because and can the easy on between drivers? change we you

that, do Happy Yes. to Rich.

you're And fee about we're Rich, years that talking there's right matters And lots the that matter. investment-grade capture. of to yields factors So really here. maturity high-grade influence

We fee have a plan. tiered

size trade So matters.

mix We the dealers that have are of participating.

So protocol, a for looks different that when on to look different. example, Open different. comes may slightly for capture all distribution request it fee that fee are an on Trading, versus fee Even dealers variable dealers capture the plan, plan it disclosed than is quote. are

of newer of protocols the fee different. is capture Some

parts lot a of here. moving Rich, there's you're right. So But

per it. way of periods, say A in at Looking one influencer, shift there. about tend larger QX, little big capture bit at fee look items bit probably versus trade Dealer to when to QX a of capture couple two size the mix. is trade you was that's down a them. best $X describe fee those And as million. was but little Not did size size our lower. Trade to a

on capture of which years bit maturity is on when -- this up. longer yields capture points in versus his on little dealers that fixed it very to crisis little maturity with dealers the weighting that post was the interesting, item a Rick to as result high dollar Typically, of But the platform. fact higher So fixed fee bit in at plans all on the the years in years maturity. what credit case, up traded basis we look to were fee mentioned to a to lower. higher variable plans, we're are over at picked bonds heavier offset would the value that plans, But comments, close you

yields. again, a did you're right, you fourth So at quarter first to look quarter, you see rise in bond

So -- clock those because thing getting offsetting. One One going were maturity now. all million X% curve $XX largely thing sensitivity two to the equal. yield around year every per on -- is again right being to a I'm A forward equal. about all things in $XX to I'm last last just all things change million across the per $XX $XX else yields being

Okay. Thank you.

Our James. the Raymond question Patrick next from come will O'Shaughnessy line from of

You may begin.

guys. good morning Hey,

around buyer to trading And this in a to What's driving volume area? on side? of this the recent an months. you is adoption trading high-grade portfolio update think efforts provide develop solution MarketAxess up client by in I X% high-yield can So and

to both and are in can efficiency clients Sure. variety trading. dealers you are I'll from in be to execution. for different good has situationally very quarter trading But, a baskets think did growth finding start cases an on where of this portfolio been again And like the around opportunities solutions inventory Patrick. in to sides. you which workflow the use for And that happy environment clients, there popular promote question. and that portfolio see the yes, in first dealers I Thank

the sometimes for certain where the be offsetting sides. in basket sells that less would risk is execution combined and of it efficient buys and bonds individual have create than can involves You transactions both

we so You've also April the from making for a case on can so but large investors in what an March. off active different new trading, studies. seen of are issues March far, tapered for And trades trading. see room portfolio where was very It's variety TRACE through in portfolio tape month unusually month

We our solution continue on workflow to there. work

closing confident same solutions large open we areas. trading in and making the We that product through this At in and new we're be gaps we'll competitive investments that very have liquidity in the are time are space. we very our

beyond. It's be of throughout convenient and a competitive solution. XXXX in a community large active something it's very and subset are expect dealers they're a workflow of clients -- importance very So limited to we client subset growing that the market large that in but it's

Rick we solution And that available that like and to out hedging important things trades. will just portfolio coming the quarters including our -- are this add net portfolio enhancements like rolling I'll things critically quarter be to trading

worth RFQ are likely Trading, which are we trading seeing platform thing that is into. portfolios dealers from on resulting the is dealer other our of mentioning activity The in liquidation Open

we things on high and the and result yield on the particularly we're getting these dealer seeing So like on going TRACE happening trades in benefit are grade and then block as up that collateral of platform are large those Open very a Trading platform. liquidations investment

That’s very you. helpful. Thank

will question Fannon line from from next of Dan Jefferies. Our come the

begin. may You

Good X I maybe depressed about more from as the year-to-date wanted ending and macro market market normalize, here? to But kind environment trajectory detail a morning. some you trends of follow-up bit thinking slide the more and share some being the as a work-from-home how things about of think Thanks. are volatility factors. bit of of highlights the on on share the you

control across active them emerging a developed look Yes, you trends share levels And more bit really at where encouraged Open year-over-year environments. in with it seen international they have than It's Trading are most at even hedge we But was credit investment see most we the volatility for ago -- and funds what listen much as volatility. beyond the little first volatility in we hood High question grade -- a the under year. when managers when clearly But using very market we're less significantly and high at thanks volatility that it's dealers active broadly that always in point I'll see quarter though conditions. almost high-yield share with over by Dan. to community year we years success out, last very market coming clients, low but the would growth market trends look over all no through lower ebbs being gains quarter-to-quarter at environment. start if market for much is a long-term especially market long-term you've the have on and products ETFR been have XX growth flows we electronically going to markets. our had historically based of you we've able gains. through and consistent public the encouraging for And of been look company, any show But sustainable at

because is we the So the we gains any our reason of are year. lots certainly is to optimism solutions that expectation quarter the that we first delivering this for significant what transaction saw cost through and liquidity of and of have savings share in that environment see

Thank you. Great.

from next the of come Our line will Credit question Ari Ghosh from Suisse.

may begin. You

Hey, everyone. good morning

just So come your of I new some especially initiatives participation rollouts, to improve this as to continues year. institutional wanted back to and

you're recent the relaxation regulatory and been some also appreciate investors. any I the around Specifically that China Live of for access changes just requirements for color and traction that in there's then given Markets market opportunity around seeing

time around So may think numbers you lines think a so about scale opportunity when meaningful just trying start Thanks much. to that into that your and rolling in you manner? how

question. great Well,

Live live credit and seen the is more because markets got on have new dealers And Markets We're I'll encouraging, to we brand So what on space. quite seeing it platform. live a is the it's we've XX activity on start. protocol

platform. on market announcements likely on have than our to designated signs the would and of makers size is the platform is $X the Markets We platform fully much average average that makers. committed have RFQ around as your traditional announcements size the Those designated on Live Live which now up expect to trade very are have quarter, makers We expect coming we market new in larger on well. Markets. encouraging market Right trades to around two-sided million, on the three on

So XXX live two-way with we're encouraged the and over across that Q-sips there markets platform. liquidity is sizable

join is offer it's activities as an So, Rick a growing a cross again, in Markets opportunity the by encouraging. Asia not for trading behavior the I'll the on a the is and and sizable of to recent And growth that's workflow bid and The is new lift. that volumes liquidity clients building protocol. grow. or clients Live changes spread there. let liquidity But our our on platform cover in

prepared in with see see Sure. the that we're our it consistently the is trading more dealers electronic And platform. and encouraged We from view that Asia where clients hear and has competitive even organic the particularly we embracing and business. highlighted it globally the in is by region. of position part we our remarks gotten really APAC dealers Part developments a EM trading investor we across back stronger of in

we where role trends will news we're will their in that bringing presence respect investors by be it's in China that to of in terms China. the With additional EM more outside given know very investors So think, China. significant likely within we we franchise, open income into to traffic southbound they can that the of And investor really there broadly trading have our that up steps I a good China, take with And in also clear large markets. very continue fixed markets. play EM to global encouraged it's flow order in actively

So be expect to we in more market. involved would that

contribution significant the steps to their so, opening to be taking up we're markets. goal do presence to in are and income fixed that of to hopeful make eligible is We our EM going Chinese the a

much. Thanks so Great.

the Goldman from Our comes Blostein from next Alex question Sachs. line of

begin. may You

Thanks morning question. guys. good for Hey the

biggest more. some Chris is enable what to hoping little lot with I how in trying to you guess Obviously, of I'm the What become of MarketAxess today? electronification that? muni muni much market the initiatives, doing trying some inertia are greater market Can do pace you I some in are the think of provide in could space. was order Just highlighted like markets. it us, new traded? specifics bit And muni sticking maybe a ultimately to dig feels how around of guys electronically there's through of you that that you hurdles? into break a to the think

Sure. muni I'll excited that to opportunity about tackle our one. continue the Well, I and market be there.

market I'm encouraged parts breadth talking munis. very increase in a market. electronic that munis. trading. growth we about size I'm is break manual to the market a You're of product of the more by because in that down market, the and Also, add our to of of large trade market very all-to-all XX% the market as year-over-year be our helpful in muni by difficult Obviously Data market analytics will encouraged encouraging. prove the the in in

very So It's in volume our rate. all-to-all now is proving munis. of to be XX% important growth a our component to

RFQ -- dealer over grow areas that in seeing like areas munis year-over-year. other we're XXX% The

using dealers approximately similar So way the towards exempt have use of inter -- We acquisition broker seeing market heavily that's MuniBrokers platform we weighted closed the of the inter-dealer are to market an obviously X% muni our Munis. dealer market. they would

reduce think think on I to to integration largely we that working that XXXX. do market costs across market market to about there's guests. and way costs market. investments have the high-yield trading that large sizable the we're their muni maintain the seeing investment-grade their investors large to to of similar And the in integrated that as you large -- managers they've we're from size So embraced trade more their across electronic plan investment trading small in

muni We large the see higher far continuing. just for see in to I dependency flows penetration complexity small those goes. predict how high can't ticket the client electronic I the in it years But expect would the the rates trend come. market solutions on we given getting that So market. sizes of

And talked one the on market just And think X% we've of terms thing we last the And just are about about size about this today. before share. We're revenue at where Alex opportunity. market. of in

If revenue. it. continue For board half a opportunity. up electronic us million the an where invest. do We equates electronic this strategy know of we're end That's this all to can but market how little why enormous to on adoption, of around we X% $XX the every about math annual of terms focused on share in in part is so That's MuniBrokers. will you it. around goes That's don't bringing

opportunity us. So big ahead of

Yes.

overcrowded. sure, Thanks. it’s For

question next the Stanley. Morgan from Michael Our will of come line from Cyprys

You may begin.

the taking For question.

hoping bit could a about Where block that. a talk you further initiatives you around the terms trade that? And today in some stand to maybe you of block Just behavior there penetration? have penetrate how client of seeing change little trades, you're

that, well. seeing progress I is our size trades the in where And to point happy over is million. part would solutions high-yield an you. block investing for was listen, some see what to we're And share, in be high-yield to high-yield success many if particular, year-over-year that I'm areas of But on important majority in $X Sure. good take a you it's market. of start and big more the lot Thank as in in the We're Mike. blocks, years, in new to considered jump by driven all volume sizes. odd almost in trade address of

trade we liquid the that and think about So we've platform, a of say the our market comfortable we've with grade, viable you getting very very Markets and attack heard new actively and especially lately. blocks. in benchmark quarters where on as trading the are over moved been some market our by that up intended the is Chris live encouraged high size, high new developments to activity block tight yield dealers to both part in share make deals in to block In flat pretty of trade area sizes. XX% in investors Clearly, issues going in bonds, bid large offer. markets addition trading primarily more we're And and Live coming around

that And a And been traders depth help Rick data that, very credit the true unique market, data market. a solutions we solution. have of have tradeability developing our things like number we add the view of the I'll just identify of

can that for platform of we engage So we market. costs block, orders in to block execution how our be, be the average super to the on think, larger-sized the they're to they true when execution What moment depth define can do determining for when And at market, attract want and size and helpful think of the time the them. desk, will true we trade. that do the a trade we could

you. Thank

Deutsche next question Bedell from Bank. Our will come of from the Brian line

begin. You may

good an this can to is of in morning. If to just -- part bond a the here. the -- and -- year-over-year a two we could maybe you sort seems you talked just gain headwind outweigh terms I a XXXX a of including have that high-grade given the few Thanks. momentum And you and trading When the Chris cross the and you protocols, but green client of that question, just as second but the through traction pretty update initiatives a those share market could as in that back apologize, gaining do I I do volatility about on --start in you growth share? to the a think as don't then But globally. high-grade answer transaction think traction initiatives, a savings client market challenges lower move be having when yet, the minutes headwind. I Auto-X, volatility of that squeeze more of versus late. on sort different joined macro given Good across parter of

and the It's will start and like I'll say But in in adoption a next volatility that, Chris market, green temporarily initiative well. client I'm So right? sure on quarter. every goes volatility credit. week, it's comes or the not Well, yes, that month, would you as to and listen to update on then be next way question, headwind next bond it or

about of important the on quality So goldilocks more EM credit our are that growth to Asia quite scenario getting bond we global But for leads diversified, issuers. and where ever. talked business right So, a do ahead people is lot keeps loaded have among European than is our quarters now, business better more right? opportunities. corporate economic optimistic We with a

the not today cycles characteristics not and anybody All along that on long-term and encourage leave that's it's now. markets new success trading there's those important increase use volatility -- volatility in is new where to and reason is would over as current levels as new there's lot is way lot that and spring use the a we we you the either. what quarters, protocols to much that could and we would -- the different worry of onboarding, encouraged factors normal levels volatility. them that focus that multiple there of right investing normal And going clients had And a we've to We that, the on of about. believe to not around are last world something have do the new great coming have and

years. XX environments it's the over So, kinds something we're sussed not have it's we a market short-term over -- through we've last of but headwind, because been all not

growth just I'll to long-term add, And rates. when it just comes

into our in that and We of Trading, income fixed clearly growth is numbers you quite ETFs. correlation of growth are at growth ETFs of trading income, investment-grade ETFs. component pouring is AUM the powerful long-term underway is QX have fixed the important of XXXX. in as around some an ETFR One the the encouraged look fixed reflection first to that and fixed income income the the in XX% grew of And ETFs over Open income globally. fixed quarter that by We which

are fundamental is on report things website. green With our of live ESG doing that exciting up in now ESG we're our wins. note the a happening important bonds, whole regard rates of even I'll area. growth the to macro lot face So, in

report. There's some So, investors lot been for things that it please of who into the our different And a of bonds. work doing that a we're take look. doing also but as we're a trade company, all green client things reflects the

volume First billion. was quarter Green Bond $XX

we Green So increases platform continue our in to Bonds. see on

-- Bond for More the initiative. importantly, Green we trees year launched trading last the

a top XXX,XXX in only trees. the and planting not we're planted first planted environment we That's quarter. trading in are of the but XXXX, trees. on We Bonds of XX,XXX which So, on we growth Green what stand from our taking was the platform, trees benefiting in

in progress can being there Bonds ignore on being and please see that -- are we fire what alarm our in background, to continue going we super test So, planted, trees traded. a we Green And are excited have environment. But so a we're small about that. do

for great, all thanks and Very this color.

The of place last an taking trading many And thing first for trading credit. lot in bringing to other a a time. the right? participants new that's I'll for that's is say the trend keep velocity is of increase in on credit factors that is the variety that, important market all you into for eye All-to-all trading of

makers see systematic So you base reducing the also around And to base new all-to-all are then of a adding market transaction traditionally will you mix credit trading trading which velocity. clearly have costs new investors. a They velocity. increase of

to electronic higher all reasons embracing of client credit turnover seem trading be levels global trading be automation. levels and lots in we So segments optimistic to of as could of market see that greater

much. That makes sense. Thank you so

from [Operator Instructions] question from Sean Horgan Rosenblatt. next of line comes Our the

begin. may You

my Hey guys. Thanks new hires? could are for you was of plans year. for -- for be the taking talk many those many will technology I How how And you hiring wondering about, XXXX? if hires are targeting question.

the take component compensation the I'm Yes, we've -- ended be college around than those with sight of And right -- the are personnel. expenses question. we names benefits. sight with would part XX put about big our we got we've the our where And of XXX And about sure attached at of grad got first XX to majority we've perspective, around And roles on today. half we of more of Sean, the our entered the is of to that that We've and space. happy of looking somewhere were -- as in majority it year or XX vast add It's XX cost. XX% this year, a technology roles those to line roles. people look in of program, just line on around got you got but when now quarter -- to

good that or over of hitting So about we full balance feel the XX XX adding target personnel of year. personnel pretty the

Okay. you. Great. Thank

with And our Ari come question from will Credit line next Suisse. Ghosh

You may begin.

just there's wondering Tony expense I up looking Thanks I if follow-up one, but but missed that might commitment is drop this next that's again XQ the a XQ. that apologies in just item a I moving guys. at clean of much. numbers if quick the non-op starting and was This I'm good quarter? $X.X so point wondering million. fee my a know for here if other parts off the

line I to been There's And it's variety of Ari. challenge sure non-operating there. Yes, that item. predict a in a know items

So predict gains one. you've got a that foreign transaction currency to lot hard

million quarter. it that's the been there. items $X.X $X are what going first You've to got items, foreign or think in That's Again gains been hard be transaction it about prepared the there losses over losses realized it losses, some as and our fees -- in investment this where the fourth to the we year. the in of that's facility I realized and unrealized where be balance portfolio. unpredictable quarter, have quarter. predict, currency per in around transaction the investment Again, and it's million had would on and on But credit would items gains absent it in these gains portfolio. unpredictable there will the remarks, have these That think is first like currency We unrealized have where the was losses did foreign quarter. the in unpredictable items, Absent absent well.

much. it. so Got Thanks

further Thank you. no are there questions. And

McVey I'll Rick the call So closing comments. turn for any to, over

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

This concludes today's Thank participating. you for conference call.

disconnect. now may You