MarketAxess (MKTX) 20 Jul 232023 Q2 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to the MarketAxess Second Quarter 2023 Earnings Conference Call. 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 July 20, 2023.

to Investor call Relations like Davidson, to now of Head at would turn over the Steve I MarketAxess. Please go ahead, sir.

Good earnings Thank second Sarah. morning, to welcome you, the quarter XXXX conference call. and MarketAxess

a then market market Chris will Concannon, and update Trading this Gerosa, and Officer, you the For the and Schiffman, Financial executed Officer, strategic on Global quarter; Chief quarter. on the call, update color Solutions, our how Rich Chief will we you Executive walk financial Chris provide on with outlook; through you provide results of company Head the for will the

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

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

Chris to Now, over turn Concannon. let call the me

made in long-term quarter I’m to our the second Good progress update the pleased very we enhance on morning. and our you to growth. drive franchise significant

quarter, per net $XX strong volatility trading the dramatically quarter. above lower prior year-to-date which we across very income share a First, Earnings in X% generated asset classes of we of $XXX generated not $XXX impact immune revenue levels. on fixed first to million, income in $X.XX million. was other We and quarter, and impacted the of were terms after platforms year of million the

the right are volatility, fixed comprehensive have we global long-term quarter will made have income that and strategy this flow most substantial future. confident results for we quarterly our the with progress and market ebb we While creating in the

strategic which on will my we managing update, framework we areas, quarterly now X focus is to how Turning our you X, growth can which forward. updates the going communicate Slide based be new are will through our and we as on providing see results

First, in achieve clients proprietary embedded our now unique them and we data our that terms innovation, decisions of trading platform we have better better solutions and launched will in that believe outcomes. developed help make

have to with in We clients algorithm, X numbers markets and first the significantly coming pilot also the Auto-X launched the months. U.S. Adaptive live credit plans client increase the in

terms large that successfully portfolio new in enhanced of integration, help in our quarter, for unique that capacity is optimize a platform trading which products functionality single trading and in and new platform platform. integrates with clients our Contained protocol our our and launched various accompanied proprietary trading portfolios by Next, our protocols selections. our trading we last portfolios increased analytics data data their

traders record we terms with clients, three more of clients or continue execution, products. client to our record record and And franchise last, expand active active in trading

a grow to XX. solution, products May and various on new trading an enhanced platform, our activity set and continue We we delivered portfolio we records and on new and initiatives, trading processed of single across trading day record

on growing the faced estimated despite in we challenges addressing in The in be dampened continued volatility platform. quarter will execute initiatives have we summary, decrease In the our we share in our launched high-grade. activity market in to which U.S. critical recent this the quarter,

share impacted we like growth. trading in volume new our by felt high slowing the protocols can While portfolio market we recognize markets, volatility ETF of the that share our have market uniquely grade also impact and be

data market new as This that proprietary that global Slide privileged new Scores, credit portfolio platform suite. with electronic leader sit data our data. leveraging a X automation and data inform position objectives the illustrates generates how powers We Matchability what a our of to we powerful to our unique construction innovating in our trade Tradability proprietary helps by data. and on proprietary Liquidity our achieve their clients are

artificial expect market CP Our the to trade. size unique and when leveraging data in outcome. get Direct newly AI recommending informing informs for trade how to Responder our best reduce clients also trade released like right to trade with their who terms Inquiry, helps how to and CP+ of to to to their protocol And counterparty Dealer determine best last, by clients, to price them price, and Data impact, specific Tradability, intelligence their what how by trade, the our inform a

On Slide for trading gathering new platform X, to will and outcomes directing the client orders trading achieve of our drive clients. better

started through low-touch early are new powered and We this solutions trading We high-touch delivering a of feedback our been by quarter first in rollout trading year, overwhelmingly data broad our and the analytics. has order our proprietary and client centric platform positive.

clients, have the now over We XX top platform are our daily. of who transitioned investor using

to X, client Adaptive first liquidity our designed algorithm, powering unique also Turning Auto-X, are to better our pools. Slide data and insights link the

pools workflows we to algorithms achieve clients help unique sized order smart our Adaptive can execution leverages larger trading so seamlessly Auto-X routing, Auto-X liquidity Adaptive clients link our and outcomes. to Our and handle build allow also algorithms customized trades. enhance

years total billion. total a have in revenue. for by market total we us that today market The have Slide in The made $X billion, set X $X gave market had have of compared billion XXXX XXXX. market that product of a that highlights $X our addressable to we last we investments the approximately addressable the to access addressable over expanded established several expanded addressable

or to are invest new while us, continuing opportunity before initiatives We the built. capture to acquired the tremendous we have integrating

provides on U.S. X an conditions and Slide update credit. market

client high XX%, volatility As segments XX% down quarter, grade down the maker select prior volatility quarter yield in by on to the decreased deploy the and XX%, of in from significantly of ETFs down year to respectively, decreased market not high and notional quarter, strategies. slide, from volumes arbitrage on in XX%. quarter second impacting FX the platform. volatility first the In volatility upper fixed reflecting decrease income, with impact the half year The reflecting S&P prior the and realized ETF our was opportunities to shown XX% down credit. was in volatility activity reduced second second the compared down unique this activity the U.S. on and XXX XX%, commodities was

consistent month, to on X in With turn over high I update Rich Before July yield high is share, Schiffman, slightly market running trends has is share the mid-June important June with U.S. prior year in grade however, wanted market now market above July. days U.S. levels. provide below remaining the levels. an and call estimated running levels to estimated and I trading rebounded

provide update let Now, on our with to call an me Schiffman market. turn Rich you over to the

XX quarter. on Slide record strength our growing highlights the Chris. market had We in Thanks, the client a client firms second franchise. our of trading X,XXX active

of traders, total the an client represent international total example our dealer over active XX% active firms, active over investor and global diversity, and of traders. and international strength represent As firms X,XXX of XX%

in quarter, XX% market with on firms the our are deep our fund private achieve active more the bank have the investment year-over-year Once year in the A of X which the clients MarketAxess Trading products up current superior of to power period. prior partnership and clients workflow us, our in trading to do power or our of we and from represented the volume client liquidity. the market, our clients hedge total and they want of to our XX% leveraging to XX% the record reflects make of results. connect credit reflects volume clients. that from increased with trading This X,XXX platform, more stickiness

had only our out of Chris as data good expected. earlier automation grow, suite as XX. informs on algorithm. here powers continues shown as Slide to exactly Automation tools are and the the Adoption playing of as described that is products What we

believe last breadth This several our than the CP+ accurate activity that more quarters. by sales validated on growth market, is CP+ Given data we our the over of of competitors. is our

record were automated quarter, continues increase responses $X.X of with dealers, increase with CAGR second our a million again, X-year from record and X-year Auto-X the quarter, tools and and trade In respectively, leveraging CAGRs XX%, a clients. saw our XX% of automation volume to year-over-year tools. of with count Adoption of record we a firms there client algo in the XX% investor an Once XX%. active XXX

the XX% clients become to clients, are are trading with handle XXX active automation comfortable these using are total and more Of larger our algos client maximum common they start increasingly at volume. as of then services. and dealers gain size in $XX inquiry interest, to been terms us trades. size, Auto-X steadily credit we’ve their rising, top sizes clients raising raise in Responding currently clients to small which It’s million. see out their sits as automation thresholds for confidence

a and by Adaptive routing our the total to smart our is a trades. believe record of new automation We record new total that Auto-X MarketAxess credit of credit leveraging of will trade XX% solutions take volume to suite now client to Auto-X, ecosystem. volume trade represents algorithms, investor a XX% level count facilitate order access

liquidity to volatility the from provided Trading year. liquidity systematic which in the A with on increased hedge reduced in strategies Open prior alternative and on funds update price being funds XXX providers. quarter, Open alternative an expand asset to other leading market the measures, liquidity in increase allows hedge The we our by have provides credit XX deploy available XX% trading is pool. they the on Slide continue Open dramatically developed driven all-to-all classes. liquidity Trading, better data, Trading quarter, improvement an spread lower investors which new Despite record

Open no executed XX% enhanced key trade a In Trading grade, high Open Eurobonds strong the in achieved liquidity Trading, a and dealer record through estimated trade algo of automation and touch volume in drivers of very in pool. our high is share. record the in Open usage of on XX% between the unique represented U.S. market Eurobond Eurobond tools liquidity count share One of grade increase increasing Auto-X for quarter leveraging We reflecting offered our trades Trading. the

we international diversification On the trading Slide of business. growing our XX, highlight

This of ADV to Second two traded. It end local our in strong XX%, up EM Eurobond driven on count of by second size. volume trades local the average on volume in quarter perspective, markets the generated our around and LatAm million $XXX largest month both of record trading ADV, terms and in ever XX% volume, daily market, regional contributed our EM increased quarter record growth a revenue. in for day the trade quarter up billion second best over platform. and included record a best US$X June and trade equivalent This From extremely was with XX%. respectively. international XX% was

review to Gerosa Now, let call Chris me financial the turn performance. our to over

Slide Thank On you, of Rich. provide financials. our XX, quarterly summary a we

signed, For XX%. million, down $XXX strong Record information pipeline we of services delivered by prior was year. of healthy driven of the This the performance up the services was quarter, revenue revenue, strong million, information slightly $XX experience suite. from contracts revenue adoption the the year-to-date we in we revenue expect full Based data on new year of growth continue product as achieve mid-teens. across progression to our to

tax diluted rate per reported we lower XX.X%, effective was The slightly than $X.XX EPS and year, share. of prior

in Excluding been all XX% would quarter included losses losses year come, versus and exchange and EPS other have in quarter, Treasury gains of are reported the which foreign of down the the the the impact decline. X% of impact investments U.S. exchange on unrealized diluted foreign in prior

which more detail we by impacted Slide above Emerging and capture. revenue commission in Munis. offset and market commission X% and trading quarter, commission U.S. Total trading our the revenue On in impacting quarter negatively was Eurobonds, prior levels gains of by was market is the provide X% the our generated reduced volatility levels. dramatically share from estimated credit credit running Total partially the volumes year-to-date revenue fee activity, on This decreased revenue and in XX, share. low strong year Markets

credit products, activity Eurobonds, The total grade platform. the over crossing shift year in bonds reduction high mix high was duration fee our which credit a in lower lower is primarily by traded client and capture in in of at fee yield U.S. rate. U.S. driven Product principally prior capture executed other from

relatively index. remained reflected U.S. last While has months, several bond the over corporate as fee high duration duration the grade capture year-over-year, declined in stable

of expenses. provide On Slide our we summary operating a XX,

data $X enhance quarter Second to growth due and increased compensation center we investments continue cloud expenses. and and a data the expenses XX% continued Employee support technology SaaS, by to facing increased and roles X%, our offering. hosting as add customer to increased initiatives. revenue benefits higher Tech to system $X trading expenses communications million in headcount, product principally on driven and million increase

flow on an and On sheet, capital Slide cash update our management. provide balance we XX,

investments million XX. solid and to outstanding cash balance no we totaling and Our continues had June as with be sheet of debt $XXX

to the deliver investing strong continue cash rate to We net to coming the favorable are in actively our income take interest of interest advantage quarters. environment

paid our to XX approximately out $XXX million shareholders. quarterly During the months, we past dividends in

Board the declared a company. cash based Our of on of regularly performance of dividend financial the Directors quarterly $X.XX

Now, his closing back Chris to for comments. let me turn call the

In summary, we very on growth well strategy. Slide execute to XX, against continue our

our We unique and better decisions new make we that better have proprietary will our data trading solutions clients that launched them help in embedded outcomes. platform achieve believe

various new platform. protocols credit platform, successfully algorithm, in which the We have trading data and and trading markets. unique our Auto-X client launched U.S. the a our Adaptive in launched first integrates single We our developed products

franchise a that believe the client growth with fixed higher make will of expect years we we global period ahead. very in in our attractive a asset and are expand to new we continue fixed income rates entering class that income We

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

Thank you. Your Instructions] Allen first question ahead. Please line of from with Chris the comes Citi. go [Operator

into a ask wanted had clients platform, give savings how longer trade morning, Adaptive have X provide maybe of can first potential for expectations a improved client And can in you on then refresher how us to terms that to clients? quality broader rollout pilot of live that’s Auto-X, timeline you about execution performance the it. you do think maybe going your translates rough Good And I just of a terms everyone. know, term? and and cost impact I the in for you you

Great. remainder early we is summer. Auto-X on Good based It Thanks as for Adaptive performance morning, the mentioned, still Obviously, in the that of remain call through expected, is those as the Chris. and be a stages, what question. in pilot. is key protocols. placed in breaks it’s will early indications, And allows can orders different And submit to it child Adaptive then a into about parent attractive. we which quite larger thing client order, various across orders, pilot

Auto-X, you market choose The market market, remain meaning, morning the pegged other throughout the reprice your it day. is the relative price Adaptive to will the about pegged or can unique and thing to moves the it and as

X we As the we another in clients pilot X X in queue. have mentioned, or with probably

sizes. All of various shapes and

hedge are managers are number them a clients, of traditional large Some quite asset and some smaller of funds.

markets to strategies trying and allow do complete goals broad a their clients the to performance we’re algorithm. unique book our as solutions, takes really Adaptive to section question solution your that MarketAxess AI-driven our just of Auto-X So advantage live in the of cross RFQ. around trading end Open And it thing a Trading Open is very the Auto-X into sophisticated Adaptive to and it’s really order outsource well all-to-all both our Trading as about

of given for allows some order, cross the improvement it spread price not substantial size market. in actually to portion a in is spreads which their So clients of our

all-to-all always a that pool offering our that Open Trading. that talk liquidity about unique in huge So competitive leverages position we trading, it’s very

uniquely is of year. designed plan And then, obviously, feedback The thus has over the Auto-X to out the we solution. roll far and Adaptive next that been into that positive. very course fall around client

to this keep have a clients but at we’re point small. begging be pilot We of to pilot, the in trying number the

when buyer platform. a to a out a and and number opportunity with seller on a opportunity thing the products. called find makes in Auto-X of important There’s we much rolled predicts other combined matchability. data one or our specific product matchability more The matching bond it And particular, of that’s interesting new Adaptive

being Auto-X’s with not when of they’re very increases likelihood about selection spread careful crossing portfolio. by bond that So their building combined their a client’s Adaptive

Chris add getting they used trades, an and Chris, they book have something Chris, one example to them. because our can it’s came paying taker, been the And about execution liquidity on had it’s quality what and to bid-ask markets, on here. just in building their I against to system. Auto-X, traditional But we just order live Adaptive of Richard else someone what’s said to exciting the execution order this was this? really would because the question quality see a leave in here, of Schiffman just going pilot, where our address RFQ then quite spread and resting that able a along were executed competitive when on and

left So each of as of go up kind to crossing bid-ask have protocols by protocols together advantage to them. pointed that we historically have themselves. that to to out, traders spread, And tying we manually of take the on have Chris it’s the to the different it different sat system

exciting So the that protocols. thing, work most was across the seeing this really

I RFQ, live remainder a markets had one we an ways, was of as three provider automatically liquidity execution done Auto-X. different as through the think done that all Adaptive both done then and on

Thanks, guys. I hop queue. back in the

question comes next ahead. Your of Voigt Please with Kyle from the line go KBW.

Hi, good morning.

could I had through from if it question you ask this high May in of competitor, that the you your trends had stabilized rolled seemed on wondering U.S. XXXX your out offering PT especially versus largest a as trends business, of own. Just grade XQ really share recent a market fully year,

U.S. seen June grade peer. high versus we’ve loss some in However, share again that specifically, in

pure from recently would are or wondering occurring standard and you even anything customer suggest in switching of high what driven has hearing activity? clients is kind Just grade of that OT RFQ that any there

like challenges we’ve where mentioned bumped in trading, remarks. products be in address. particularly well. over growth into certainly unique grade the to Obviously, EM opening continue other quarters for as to Eurobonds, share our our High and and see yield, competitive a across our years, we are question. happy high the environment Sure, portfolio products, I offered things Thanks are competitive those and the growth share over around area, a and that as to seems

We’ve the market now years. grow certainly the It’s of seen somewhere portfolio the and couple over past between and trading that market. X% of within grown overall has X%

from portfolio are are through workflow a solutions, so that of in they able their are price very they trading of and investment trade. flows trade large clients hearing for amounts to seamless one We move using portfolio one-time or out

We of our are see their platform? spreadsheets, And even on the We with environment. happening are trading What talking trading Excel in portfolio dealers, we’re direct on. we to for see happening then, over clients needs just regularly obviously, competitive enhancements we’ve a our rolling portfolio earlier, that trading the talked brand new trading number trade. now items our our tool that enhanced expands we about platform a out clients out on to rolled platform, line portfolio number new can of portfolio

a also, unique than and data, that clients the help or see product that We data It trade are out their tradability figure trying a more to clients they’re to portfolio important using determine be an by in not price. our line portfolio is that protocol, before the that more portfolio often embed of portfolio, solution out clients data, and our that to to portfolio them they portfolio, we that rolled trade the line do and items helps adjusting build data choose portfolio right tradability only portfolio optimizing before what their amending line in trade. but price as improve making importantly, which not should price

in that and good So our number trading course the are we’re enhancements, of a positive and throughout portfolio the we about and very August out of have enhancements feeling rolling new very fall.

being a volatility, big things done of to get it’s about Also, which earlier, pointed PTs low the add a not is Rich. that there’s the was pretty it. Chris out premium just to going paid way. I couple current as Kyle, environment, Yeah,

a of some that there’s So there’s bit shift of no in been activity. question

easy. although, also, that in there terms in business taking most not overall maybe workflow, PT the market, the around product in the amount place, fully sure making as fast up picking it we’ve got we growing and are sure making as particularly competitive invested We’re it’s the the very usability of out

of morph focused that very the around we thing our term, list this geared execute longer we’re business But PTs for the goes is the The a looking execution out, in to on, depending vary that is And, at Should to way business, ways to that pretty particular, PT? and liquidity in comp I trade. provision. one that so smoothly. market go platform trading and going going they’re when traditional new the work give this quite it’s much they’re making I upon go what is comp at sure PT in in traders point on time. is trading, in Should concentrated better terms It’s PT, in list? workflow of which what’s going

or firms that maybe think, dozen, or if half in that. I number, quite it and half are eight, it’s a so concentrated there’s with active that

X,XXX do. the an that to thing broad the from And liquidity over all of seems we liquidity market forego in providers to have unfortunate

of is kind portfolio workflow. that’s our trading So can liquidity bring for we benefits long-term how with roadmap that broad the the ways look on PT together with of

Thanks, Chris. Rich. Thanks,

Your next Barclays. with question comes from the Please line of Benjamin ahead. go Budish

the of size Auto-X kind increase? perhaps in time think I expect seeing and Hi, seeing do be reads wanted there. some your solution this the your of of kind of is just on you earlier, more what auto over taking Rich, from bit I more traders of to exiting trade thinking from Chris’s a start it increase. with kind going Or in question to and Adaptive the comments comfortable larger sizes tickets. Auto-X, product? quicker Adaptive like early kind guess, about and larger Auto-X they for You get a follow to trade of Thanks is on to you’re question. terms for little putting back

reads any seeing of the kind your early you’re behavior and from clients from yeah, pilot? So,

the Thanks, question. Yeah. Benjamin, for

pieces to average but or a it is, this part Adaptive into not tickets, an those ability of the inquiry benefit large be executions. easily it, in to what across volumes through I smaller at think, might really of breakup execution price we’re because going reflected coming larger larger see order necessarily get on and Auto-X quality

orders into actual the in the be happen will smaller larger of these So, them tool executions system, for attracting pieces. I it relatively although might think, a

Patrick with Your from the comes of line question Sandler. Please go ahead. next Piper Moley

my good Yeah, in month, was question. Thanks U.S. the a liquidity there about earlier for market out large market. month, maker to become credit provider maybe this talking Chris, there that was involved morning. more taking late last wanting

leaning wondering credit, it for on your what So what Thanks. tool means automation what thoughts Adaptive just and maybe of means maybe into players some specifically. are larger for these more your it Auto-X

the And, hikes Sure. a Great rate rates. predicted macro rate environment certainly BlackRock Fed question. for next obviously, income fixed from income once yields positive And, another as And week. is these positive fixed very going next hike contemplating to obviously, a attractive raising point halts everyone at quite if fixed levels, is it’s recently the Fed surge an market even at investing. Fed the the perspective, income looking that quarter the coming years with week investments that’s stop in for be obviously,

is to in classes, come. recent, new certainly, many a most overall about attractive there FT very player think, a particular. in Citadel of credit The really the their of Citadel provider. income as the a the markets is a things obviously, and, a macro story large So environment fixed market sign It’s the for credit, we’re seeing, very that entrants is important across the I trend was entrance quite and different liquidity joining asset

of out particularly entrants, other markets well. seeing also groups, are market maker ETF as entering credit the the We

new have around globe. a market X,XXX a clients and of the can And with unique trading, we you join certainly the entrant, offer network where a join offering all-to-all

trading. all here, we’re the entry a trading funds step makes seeing things leveraging new quite Adaptive like trading prowess, other for ETF entering into that Auto-X hedge and our and for outcome known ability very Citadel are technology, market for which enter electronic with systematic a to they the all electronic advanced attractive makers but Obviously, the launch. suite, market including its market towards automation very So overall strong are that bend powerful our the is is

Excellent.

So I hop queue. the back in

Thanks.

Your go next Atlantic Clinch the of Please ahead. line from comes with Equities. Simon question

just for got proprietary about and and question. could the a that think is early of question opportunity, and, the we which set, I my of still quite CP+, significant expand for data just timing Hi, how through the I taking business? into the stage? your should side everyone. opportunities Thanks think, flowing you that size really data And Actually on your about perhaps monetizing

And love data to about question. we MarketAxess. talk Great Sure. at our here

to about, about I data put perspective, the market spoke revenue. addressable market of $X addressable that is it Just billion in that

very the opportunity the So we in data are bullish on space.

data benchmark have revenues think growing U.S. it’s demand real trading our CP+, Our consistently data. we result corporate of bonds. the U.S. data been time a real for strong Obviously, bonds. in as a U.S. for It’s for product time the of corporate the

more we did our our more trading footprint data EM, importantly, trade. trading demand, high that in we’re particularly to more valuable. footprint, both much in grow And and is and high seeing which becomes we Eurobonds and grow market But, EM, a We demand as Eurobonds product across see difficult EM, in for CP+ that much markets. those international

here. well certainly we’re internationally CP+ as for projecting So attractive as rates very growth

our I platform, into are coming the and launched intend is do really load With are this newly point. and that they to new our all that engage data attract at embed regard to What trading months them in and over number platform them platform They quarters. and products on the named and can to proprietary only an of trading. we order volume production our designed when for being trading data our clients see so a

liquidity platform, curated the determine orders to helping also unique trade in market. on way more the attracting clients given the orders very And our careful we and their a it’s of best how given but believe the size

on Responder based should of a likelihood best tradability back the price you predicts And number like an things and will inquiry price predict winning get based Inquiry of on the will responses of CP So size. the your on type bond. actually the unique inside the bond. that predict client of and CP given an inquiry your size

very So out. rolling we’re data proprietary these are products very that unique,

larger these trading of the counterparty, our restrictions select believe platform orders And be market, do feeds lots help But so for exclusively data actually Direct of for size we’ll own to be will very to all we pure our is Dealer on will your use. latest platforms. them you able into the monetize outset time, you’re dealer clients with over in when their offered proprietary at which our AI in important use

over is products. the our So, all across now, right these focus of excited we’re time, opportunity. the our products share But, data market about growing

next Your Jefferies. of Daniel from comes line ahead. go question Fannon with the Please

clarify Chris, your morning. Good comments July. to wanted just first, Thanks. I around

which were I think you comments, consistent said said July you think with with I market share mid-June. consistent

if environment, that’s how different just end backdrop you activity client What about And be have and than as given it’d to factors maybe kind the about perform? for ended your as ideal many both think protocols is platforms then current the curious maybe the of behavior. products, of June how market to well impacting been as helpful Just think your up. macro

Sure.

be of of again, building the seen and volumes of to over I end month there consistent more what a fixed my mentioned. Fed is can’t June that quite So I accurate, volatility with can week, running reflective and mid-June the we the remind We’ve close. as is hike eight levels couple dramatically. indexation years imagine next levels, that were you And certainly rate income around so more impact into moving potential days. comment will next it’s obviously, the which last predict you can And trend levels are of market, mid-June the

had that about clients quarter And just because potential certainly end market, a excited rate of caution, we’ve globally. a among to what A bonds. as from we investment seen Remember, of March talk with then is clients over a all clients. bond from to heard sizable of to hikes, conviction we’ve our we last that macro the investors directly our the banking particularly a really deal portion great lack around gone a banking left market our And we’re crisis is sector. out the

clients crisis. turned hikes. quite continuation post moves March rate of really then, a of the So our concern and great around there that watching And is Fed the crisis deal have to now

potential much income fixed leave will halt attractive investing. as earlier, the But, we their more mentioned any rate Fed to towards hikes investors

about So coming bullish the and over market we’re years. the quarters

talking last and the of earnings other last have result of out cutting of And been costs spent many two a those headcounts months pieces: had releases, come clients, comes important probably you cost that cuts information as a the piece it in technology and own budgets as The result our they’ve cut. in going as X saw release to been their of challenges they’ve we’ve in have revenue cut year. been

the going hikes traders needs surge to if imagine in environment their where trading outsource in are their they’re and clients to of outsource seen. have, assets, that a are need the investing deal can particularly those the and halted to rate income reduction fixed solutions tech workflow to their going there’s you So that with challenges we’ve

to suite, automation as as high well offers our which see continues seamless market the technology particularly trading and clients positioned and exceptionally EM we very grade, for environment, need new the grow of well feel solutions by our So workflow better rate current workflow across like if around halted quarter-over-quarter whole high solutions and yield, Eurobonds. you solutions hikes our all the things by way platform

environment. we’re quite into in, excited So the about income that the the put fixed ourselves inflows given we’ve the could come position for potential

I’m just of next for our don’t in at paper something the I refunding like $X Chris. but needs add to year. heard also lot thought It’s market, I that, that’s which calendar activity platform. going number and it’s definitely offhand, worth favorable be a to refunded looking Daniel, the over the and trillion going of is have I to to that exact create

you. Thank

Your next Please Stanley. with Cyprys go Michael Morgan from the ahead. line question of comes

reporting you guys see a the or landscape. good morning. curious, that time hoping Thank proposal your regulatory on in latest anything thoughts X-minute, could the then sort Is taking TRACE latest minutes XX the headwind impact share the of I particular side years? coming hearing you. on maybe that risk on to little for have? could the a might to could the there you are what bit for that And was helpful Thanks from in Hey, business of tailwind question. a specifically, the cut just that we watching you’re be

we’re the broadly settlement can and the more that continue to and and favorable regulators. favorable that proposals treasuries obviously of so in SEC’s and we processing impact electronic electronic are treasury all-to-all obviously an market. another obviously closely, the tracking the for have From to all-to-all processing. towards here proposal move we a be still many requirement trading obviously, globe around by does regulations have footprint, global to is TX Sure. tracking quite we’re very hear to straight U.S., TX on mindful across side, the the we support regulatory times institutional They’re through

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so Yeah, much. great. Thanks

else thing any requirements it’s just the to the to open for be has if be Trading. going for to Open capital to in that, because becomes it, it One would bank somewhere for Michael, banks harder liquidity to to get trading, change side trading, made and all-to-all electronic I door there’s for add going that that’s in if providing certainly a up a tailwind tighter the lot activity more

you. Thank Great.

Sachs. [Operator Please Goldman comes line go next of Instructions] with ahead. the question Blostein Alex Your from

morning. for question. good the Thanks Hi,

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Sure.

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Raymond Your next the Patrick O’Shaughnessy ahead. James. question comes from go line Please with of

Hey, good morning.

workflow order who and clients For your algorithms? do access leading systems, data they extent suite have entire of platform the your solutions, what via to solutions, protocols, management to access

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Thank very That’s you. helpful.

ahead. Michael Morgan Please go from of Stanley. Cyprys Your is question next a follow-up

but follow-up. Thanks get from elaborate the institutional I side. you on just shop, you’re maybe ETF to demand. the hoping taking with the you for how was I know connectivity also you retail do platforms, more could an are you on wealth interfacing retail, have Question guys benefit of

about any end can do Thank that? share think color market? how there you and you. you that you attractive just So expanding How view

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you. Thank Great.

comes of Please line from question ahead. Your Rich final the Repetto. go

boy. Oh,

Yeah, to your fictitious volumes, comparing you’re So what number figure out I’m ask, non-disclosed? personal to And were? like and a your because a July just to that’s mid-June I’d your are what volumes mid-June investor. volumes trying

Okay. Associates & with now? Rich, are you Reppeto

it, exactly yes. That’s

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you. Thank helpful. Very

right. All

questions further at will call no to are There Chris the Concannon. I this turn time.

time your today, quarter. talking to forward you again. we to you, look Thank for next Thanks and everyone and thanks

Thank This concludes today’s for joining. call. conference you

your lines. disconnect You may now