Virtu Financial (VIRT) 18 Jul 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Virtu Financial 2024 Second Quarter Results Conference Call. [Operator Instructions] Please be advised today's conference is being recorded. I would now like to hand the conference over to your speaker today, Andrew Smith, Head of Investor Relations. Please go ahead.

good and Kevin, you, morning, everyone. Thank for you joining us. Thank

Douglas released and us Mr. are Our have and second Officer; on Joseph Officer. morning Mr. were results Mr. we and call, With quarter Molluso, available our Executive Co-Chief Financial this our Sean this Galvin, morning's our Chief Co-President Cifu, Chief on Operating Officer; today and website. our

questions. with prepared remarks your begin take will We then and

statements belief regarding note a uncertainties, reminders. current which call forward-looking represent subject include therefore, may materially It which outside the and statements, available this events press important refer undertake forward-looking few company's encourage note forward-looking future presently to available. information the based other to do review report, release any you to these on and update results statements. is and becomes control. factors from the statements may or made First, Today's information that financial actual not public call risk Form in our be assumptions we our vary are, forward-looking any to disclaimers annual of is in that what Please in revise new XX-K to to and Virtu's filings. on contained risks, our and are as conditions that may indicated you description company, We

GAAP. call to explanation GAAP measures to management listeners as to These income, not as be additional to that, this in supplemental an And be refer margin. to the portion financial superior uses may in as this referred earnings should the to certain including why reconciliation we adjusted call, as with website, equivalent direct Doug. non-GAAP with the income, our net of call Investor reported to well to adjusted we how trading as meaningful of considered where consult measures, adjusted adjusted I'd measures measures. measures materials information and accordance on measures, today's term net with addition GAAP to EBITDA well as of the deem over We like During non-GAAP as a supplemental in EBITDA you'll to turn these non-GAAP find and information

Thank you, our reported second morning, morning, results. everybody. This good and we quarter

For adjusted Virtu earned EPS the margin headline XX, volatility quarter businesses, $X.X We thanks June basis. trading Making We of performed to EBITDA, of organic generated per this franchise our and Virtu a growth meaningful from adjusted to contributions adjusted ended day and Market on of $X.XX compared our quarter on execution $XXX growing income. an statistics EBITDA volume both XX.X% and million million performances services from well strong initiatives. our net

notional turnover Pan-European operations a and down to the needs unique us Stock invest global in day. Virtu X% first impressive Services, trading delivering turnover afford XX% in are Tokyo adjusted per maintain results the our especially continually about notional platform volatility considering million partner. And Beginning class and were as was highest day, since our down the Asia, X%. clients' scaled this higher trading of our that net Execution quarter notional meet $XXX business over ability Virtu's X% was turnover was was very second higher. Adjusted U.S. well. XXXX, with was XX%. valuable when about income X% or almost to quarter down up of per These net volumes performed income quarter, multi-asset million Exchange the $X.X position

our our And paying and essential a it's technology investments white these eligible investments validation this for clients our efficiencies providing believe us clear are competitive to capability, We are infrastructure in RFPs or our revenue multiyear local and to to that offerings we which off strategic contributors which and us multi-asset fast-paced allows Major These technology and scalable partnerships need boutique class better label services efficiently their clients. in Virtu's to brokers and as for the and client makes reoccurring landscape. serve technology are thrive evidenced strategically third-party analytics increased opportunities by call win adoption. automation, nonexclusive institutions, benefit to to and us Virtu allow create what distribute advanced management access and and global risk helping recurring other regional them sell-side from platform. rich markets data more trading to

of and we've to new hires opportunity, offerings by the us market to distribution realize serving successful human senior making capital abroad, and this suite creating to in help retaining exchanges. building Tier Partnerships has our industry and and right in franchises global the U.S. enhancements us accelerate veterans with like addressable and verticals. distribution made expand To of our several these allow crucial product BXB important and our Recruiting to clients efficient impressive X been the additional track network. banks record

constant to while initiatives. key level important Our talent means disciplined a kept staffing adding support to approach we've

in analytics problems. new practical interest IRS understand CDS global offering seen also needs of curve solutions platform built, with we These of analytics and as our can offerings. examples income are as scaled their to and the how, collaborate ] fixed we our as and rapidly result cost We've clients develop their well post-trade [ pre a

future about We this are the as business of ever. as excited

sustainable are by offerings around built client and long-term driven our partnerships. always, demand As

in noncustomer business an we Turning United Making. across businesses received delivered drivers. quarter Market of desk very our exceptional both by flow many team internalization in thanks and the the improvements part customer in an where offset continuous muted by volatility States, attractiveness Despite background, including Market the performed cross reduced made well, Making our the and to increase the to the

meaningful operations certain segments in we from second equity commodity in the quarter, stock market While we benefits results to single saw global the quarter. this opportunity recognized that enhancements United with internalization our greater These despite results our outstanding reduced softer opportunities combined to in on achieve the drove Europe quarter focus last and across and ETFs Canada, us Asia. States, enhancements, optimizing compared helped results making

great on a we're how focused opportunity market our enhance example yield is every of from investing to condition. in any This

Market our our business had net per as new ago. presence short continued core I the in day from the few our We years models $XXX,XXX create success and clients, asset income team's highlight progress adjusted onboard will adjusted overall is to this contributing of Growth are no we well trading distribution, more of block, proud operational and a ETF in the win Making of broadening streamlined which expand the generated to to more clients as initiatives in in leverage net develop to areas, trading our classes new only our growth the results in as real build new RFQs standout quarter. In processes performers XX% continued our income. efforts result services geographies. pricing we

regular In managers, symbol issuers growing their including ETF facilitating coverage and with execution addition, and capabilities underlier has our relationships fund the needs. broader opened for rebalanced door

delivered be growing Virtu's options firm this our top we footprint performance as Building Our a continues priority global to global addressable our of capability the of future than prior business the grows. stronger significant to a quarter options lower despite part opportunities. and be expect

rapid and in benefits optimistic footprint the at growth remain desk. exciting moving direction the income especially are given fixed our in synergistic accessible our in in opportunity rate growth the space. the income fixed when The developing is about we we pace which us with Similarly, opportunity the potential technology for growing markets market the and increase to the ETF deploying combined our from the talent block of

on crypto. briefly Touching

as was also albeit muted XX% crypto the Our spot Bitcoin this opportunity meaningful Market a QX. quarter Making down over to were business contributor, ETF volumes was compared

footprint crypto our Virtu that our historical for expanding consistent is We are manner in risk. strategically venue a appetite with

Our spot expansion diverse to flow. crypto enhances and markets order access in liquidity the desirable distribution our

have our classes similar to development, built firm. the keep building As which of we're cross-product this trading more spread us what reduce capabilities. we in to other asset part fees earn internalization across of the and allow we

Looking working make to are ] be exchanges when to prepare with issuers to and ETFs [ crypto options with on and ETFs approved. forward, ready and support markets we regulators to Ethereum they are spot spot ETF

strength markets. spot are the rapidly spot ETF launch ecosystem and of role and crypto accelerated introduction the the our ever. has last to scale products the transformed seeing quarter, service Virtu of leverage capabilities mentioned more has ecosystem we enabling adoption the to As recent than crypto of to by we in and plays success crypto Virtu's clients from ETFs, since The investors us traditional

to demand we market. the our We Suffice early see from coming say, unique continue platforms innings for crypto. for liquidity our abilities tapping new demand to in to opportunity products of and growth in the as still are client well as

more to I'll commentary. Joe? it over Now for turn Joe

down volumes debt as equity X%, speak over were retail sub-dollar in to U.S. down were right. before review versus share it S&P Realized about mixed our but about X% the to volumes to up XXX buyback markets, environment All volumes, XX% refinance quarter. was to while options May volumes up market up well equity volatility prior of U.S. turning Sean XX% results. did the the FX volumes the the X%. In credit U.S. as mixed were volume activity quarter. down Energy about FICC you, compared shares also Thank up quarter. I'll volumes the were briefly of about Indicators we was down IBKR's Rule XX%. were XXX program Overall, X%, through Doug. down for were were high-grade X%. over were X%. the prior excluding the financial

invested June $X.X at over capital At our XXXX, billion. XX, stood total

a on remain capital incremental Our returns superior basis. long-term on

our have begun diverse returns Our service ability evidence significant and our generate to as dividends. initiatives explained, of to growth broad And offerings. pay Doug is

particularly are capital-intensive date, we an X.X $XX.XX. Our XX.X be cash to returns at at shares quarter relative ability $XX. price new our million free shares income a In the of would portion an our of X, average repurchased basis. greater average To price a flow repurchase initiatives, on to businesses more million generate have we used as of even superior fixed

have was count net program, share fully Since target ranges XX% XXX.X our of the initiated repurchased to diluted end publicly. repurchase buybacks outstanding, the within on share bringing announced new Virtu we over of have issuances. after shares we Quarter million fit we our

Our published. is guidelines we within share repurchase program have the year-to-date

the tighter quarter, refinanced billion was of existing down the All portion of This had and floating XXXX. opportunity hedged debt prior billion XXX, X% refinance We through our X.X%. debt of which we SOFR our from this loan at to the a and to but $X.X saw a million bond plus is the priced of outstanding. $XXX long-term of $XXX diversify term loan loan spread million end we the -- with an $X.XX at

refinancing, are we very three so the holding happy our debt long-term facilities years, this we this liquidity nearly with on company renewed with and maturities extended our Together outcome. by

environment the Slides the market as ours and sustained While we and market-related as like power illustrate our the earnings enjoy will from volumes X materials with from in growth and cumulative capital X initiatives of share leverage and and repurchases. businesses our vary results our of management positive impact always volatility business well the supplemental

adjusted On quarter. side, million the in the cash expenses expense were second operating $XXX

Our year-over-year, X% with cash expense also about run guidance. up is consistent rate operating prior

XX% XXXX. cash compensation was for Our XX%, our XX% to XX% the compared and ratio total of compensation ratio year respectively, quarter for and the full

expenses the historical within numbers we year other operating to clarity done as on range. provide And cash have expect We we'll past, as compensation in recent the and more unfolds. the remain expense

remain ratio within Although the norms. expect we to also historical

total forward, low assume expenses. to single-digit we increases in operating cash overall our expenses operating will going continue Regarding

through over to the it So to Sean turn go financials. I'm just to going

Thank a you, summary we On supplemental of morning, X materials, Joe, Slide quarterly our provided performance. our good of and everyone.

$XXX second $X.X Making million trading gains Execution day direct $X.X or of per totaled represents Services adjusted trading was $XXX expenses, $X.X or our per Market million $XXX net or adjusted and income income, net trading million day. was our which quarter XXXX, net per of income trading net The adjusted day. trading million million million

Our adjusted of was $X.XX. second XXXX was the margin quarter XX.X%. million second Adjusted XXXX, EBITDA $XXX normalized quarter was EPS and for EBITDA adjusted our

results. a we summary expense operating X, our provided Slide of On

The we recorded XXXX, expenses. operating of quarter million second $XXX adjusted of

disciplined of and environment. inflationary us benefit expense Financing refinance our was years, for and aggregate. interest remain the our continue during maintain approximately We contracts the which that the second of program, to blended rate quarter $XX this with per million has commitment prior for interest efficient helped the swap expense operating shareholders. expenses and return a was management, We share the X.X% structure continued our our recent our to interest in $X.XX quarter to rate debt to committed XXXX cost control long-term entered with we in repurchase our combined capital our to dividend our demonstrates

turn to like would the call the Q&A. I over Now for operator to the

question first Our Instructions] with [Operator Moley Sandler. Patrick comes Piper from

quarter. your immortalized It's Panthers on you strong on Vinnie congrats Cup. get watch. the a It's victory. Doug, and cool pretty Stanley the see fun on to Congrats names to

organic ANTI or quarter. out XX% two quoted of back we have the opportunity up was XXX if initiatives, months those we know but So data, spreads that quarter-to-date. this X% only contracted have sequentially reports I implied

could then some sequential versus help us just maybe first drove So notable And second that quarter, of the on understand quarter? you what at elaborate drove in overall the this quarter disconnect just that and were maybe looking changes a environment strengthening. what

the for the appreciate very prepared words. it. I was I kind Yes, performance remarks, with greatly and thank said very, quarter. Yes, you in I very much our pleased during as my

we that realized were to a you point look metrics lot around quarter-over-quarter. we guys and spread you frankly, and know, down of the volatility As quoted that at

some definitely opposed changes indicated at on in are as calls during the day. quality as price are very was the time, of the S&P think, at and service, best the in side. think I sure which make can. customer investing Making side to I've end volatility, while our volatility Market when realized on before, volatility, we put the that clients, execution best do these S&P level models to look, always day we as same best possibly flow our on that much that the I mean the we monetizing the the to providing there working I intraday the there's the increase measuring helps to But

things internalize a is most we've proud were remarks, have side, prepared quarter. lack but is really that in ] our we businesses, a unitary as the means So even this Market [ our that and adjustments within for within that debt, customer noncustomer number the tremendous. on which a firm. of business enhancements that about the know to We And trading indicated contributed better single of during that made model don't it the certainly, word pods, firm noncustomer Making Market easily Making and I one I'm trading my opportunities of the are

therefore, of flow. et does you exchange your and cetera, to making costs, enables be and attracts tighten that so costs, a more it external SEC confident Obviously, spread, minimizes thereby things. both market to And couple but about fees more it also which, your

historically opportunity. So flow flow, get more this at been that. better And good pricing very more to more begets firm has

and had I rather a really, Virtu there's should point out, I reason -- our started remarks a good also my with remarks Execution It quarter. Services. really

a Knight base reconstituting and was rolling to Virtu clients then that suite in client call and -- that as products. since hour. in the the down And execution, but lot deal and the at We out with what have replatforming an it, of give and we've don't customer going great car of quality Virtu of service. really, so Steve and Execution ITG spent amalgamation, They the a on Cavoli miles world, at I'll and says, a the tires at of and an is embedded essentially the really accomplished into looks X-plus Knight was it "Man, credit. business, here have always ITG on our broad products a it competed Virtu folks XX years highway this last impressive." the I comfortable we've stop changing now part and Services financial We and

rolled of you love catty essentially I'm wish has when guys learning you using like The analogy, it's golfer. have called [ the Uber we techniques internally product improved you is machine the and play had execution that a this ] [ kind golf. that which demonstrably Switcher I quality ], a and we out

club tells what what suggest get shot, here's You is you to it it's this hit is do, going exactly a to and the should we this you do. that you and strongly and

says, resonates Virtu. -- market to does so proposition you here's switcher of the of that's order and the and product use set then it tools quality And have And in current that is with superior clients. our right our the really should clients for our that what execution we side value here clients. And buy condition, think sell-side

The ability I technology technology kind even more lot more side. superior not. Virtu great which sell Execution competitive remarks, side, mentioned and on sell our as of and taking last dollars a of to a symbiosis resonated and They're gotten would and the rates have commission scale world advantage view the prepared to on are There's we're produce broker the than technology services Virtu as label in more players my has it white that box smaller-scale has as to and more otherwise it's or and than commission piece provide players Services, and of competitors. as think on folks skinnied have with in scarce, we that execution, really to firms people services, that happy there a are happy, are

I your aforementioned is of and it could the of a of really a you all combination Patrick, lot question, runs. to So think, answer singles, score

then the up was XX% year-over-year. it And on a organic follow-up, ANTI, growth, as almost

in can quarter issued you of the drive absence industry crypto to that business ETF that this like contraction in appears they're which going appears results it which outsized occurred given in the the new in expect approvals, forward, and the I how kind of don't versus was you it crypto driven XX% throw a just shade of then Can think it, out contract you about to the ETF environment something help block sequentially. in want contraction So on by which any as that like revenues drive did launched how there much us parse we it do and called but out quarter.

organic to are market And calls, as initiatives growth not the immune forces. we've said on prior

compared the [ prepared crypto were for volumes after the Obviously, like, option down pleased quarter-over-quarter. my X% very, were areas. spot Bitcoin down Same our remarks, mentioned quarter-over-quarter exuberant in example, in to ] very as I global volumes SPY roughly XX% ETFs Look, so block the ETF quarter-over-quarter. launch. in down with efforts volumes opportunities And were I'm those with thing to continued

and volumes better overall We continue but the get what to better subject lack to grow to marketplace to what word, expand to macro and a the and know obviously of are. we're

sitting we're today. here So

ago, effectively three you're said these you plus years provided adjusted like, If to net X had $XXX,XXX three P&L I onboarding have in categories, and and new $XXX,XXX a we're we similar of away. accepted look, to would have me distribution from venues nearly what trading like hey, creating been right crypto, have particular, which In ago, to ecstatic liquidity going years three in network FX.

portion going not I there's yet growing ton to assets, of embraced to have be haven't you obviously. some seen counterparties, a digital allocating firms that notable been adoption, been digital are other or investable full that RIAs to institutional but their there's will, if you There's assets of a demand and from a crypto assets, very institutions think crypto. now and

will we public I provisioning and others. at obviously, liquidity venues of continue new our Markets, want and do, always as for my to that. of EDX Fidelity service So Citadel services, a friends with piece announcement and Schwab that our There's plethora do we a and including, own which

of to an but in both continue we so also to there's distribution think products. evolution the channels digital, And the going be

of products. as class the remarks, of [ the XX, the [ excited as products. Market and As open allow traded and generate we're thing, a products ] options cerium smoke July prepared up new to, very them [ and puff then because this, want services. to SEC there ecosystem, investors that of ] appears pearly and new that gates on you be and be it from July and XX I Genser be ideas about like market there'll in in midst And white alluded it's a the which ideas. leverage on be my we'll market And ] mentioned the there participants Making whole will will new other providing

as quarter, said, in other Doug Patrick, forces, to the as it immune day. not growth second $XXX,XXX to is but way a initiatives the are -- look the at market well

supplement an really basis look markets, much at in real $XXX,XXX and fixed day you XXXX If a there on income right? $XXX,XXX were day growth hasn't a the apples-to-apples XXXX, taken and even we slide, that in off robust yet. So and more in there's

that. with happy really we're So

comes next America. Our Craig question from with Bank of Siegenthaler

it's the were I tailwind you up days, the know approvals? of from ETF seeing we thousand around should quarter Bitcoin three Because So approvals. size early you how mentioned ETF a dollars last but hundred think a we couple day

half this a gather if the So Bitcoin $XXX,XXX does either did, day. assets mean that about ETFs about

opportunity. how curious size up Just we this should on

key ETF Bitcoin of reluctant prognosticate like I'm products. been to have inflows have what think going these is been always approval. a -- there I new the there be somewhat I the the -- think mean been to take-up have ETF spot I as from significant takeaways result

be I imagine to would there similar are here. There's circumstance that Ethereum a obviously to So folks that be Bitcoin. will going transitioned from

get So of I a will XX, approved issuers lack activity for think, and how the ETFs. July I initial XX-ish think don't so, there's ultimately know surge on better of or I Bitcoin spot subsequently, be word. many they'll

ETF I think sorry, Ethereum market So has -- growing. the been spot I'm the

size scope than it I think So would or of kind how out. closer whether probably to in X/X X/X X/X X/X in is it's size, it's I

more we're dollars exchange new because excited and have and a are we bottom line SEC the of that adoption. us, and role provider. adding marginal where can And for that fees So products as key to part as pay on kind certainly, play opportunity. the servers amount again, monetize the -- stuff, to it's that because look, right, think of to it's there's exciting Virtu I not that's ETFs institutional of interest, continue but personnel that's retail significant effectively really -- more think other I'm and the like essentially liquidity all more flowing fees a XXX% see you'll after it's sort of as been a And I regularized we you'll

income fixed is out. the on And bill then our follow-up

revenue, are probably ETF blocks overall, down looks in VS income So the were fixed like relative what to you that based seeing the on it growth did then side, And but on component trend of number? how income? revenues fixed rest organic ETF at the your

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we're a real so to reckoned And competitor be with.

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we to have because, can the Making We we clients on technology and that's side. what that scalable Market offer robust candidly, do

that proposition a technology as So scaled broker-neutral provider. multi-asset class value fully

there's a as some great indicated, for analytics Making And as ETF also that really products. the mentioned I'm rolled maker. in Market in I what the our this of question market side. most products equities group certainly, first do To the in has, order side, precise answer space in we're prior because needed be But credible, bespoke, more I've science income you certainly, to as art as great baskets more in aren't fixed they being market well. that competitors on have our be on We and ETF an And calls, the the multi-asset class know the in would to maker cetera, to have given that's I've commodities. Citadel, and as out, excited provider. firm broad that. Street, be firms are Jane time, that's the about folks opaque technology obviously on a equities, your said analytics all both and new we We're the expert block an the credibility as et execution

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Worthington Our JPMorgan. comes with from next question Ken

opportunity. the launch as think grow And on fixed future. in rates are platform? Really but is FMX opportunity you on about ] expected sizing to partner, we then up there not a and on that to still to an follow participating And not-so-distant [ new is planning them income, you're with rates? the

markets income are Virtu time income volatility big are even generally markets. over opportunity fixed smaller options, in how versus does the lower much markets, clearly, much the like or set biggest, fixed amongst classes which look that block but So ETF for the volatile more something much and is but asset

I Look, to I say. what very FMX, careful very, want on be of

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was in there one if U.S. Certainly, the exchange

know kind larger we of last significantly and be that would XX of I the think spreads the and cost would history and higher years. be all stuff,

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them of to on of And world stamp means Virtu so market-making the having approval top us. housekeeping effectively the good seal

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it said like in the is should On I've Tradeweb, we've investment-grade world. would the and Billy, and in which rates screw cracked more access tickets for Virtulian like small As in XX things that and I kind of market ask up, calls, treasuries exciting. in top but probably X we're you bonds, are prior for top

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and class very and different than asset that equities, different and whatnot. is -- as So it's options from very

partnered a great deal. learned anybody of TrueMid to we're with we've that as We've Switzerland. leave great firms, firms don't We So everybody. out want including these other well. and some love I

with. along we participants regulators, Sometimes to the get but try not all the market

growth about excited firm. I'm initiative a long-term medium so that And to for the as

from Allen comes from question Citi. next Our Chris

I that as seeing are you on generally what wanted there? base? of more are a terms any growth kind moving the revenues dig wonder you're then percentage the set little sell-side I or in in of mentioned opportunity Execution bit Doug, the Services. on recurring you framework recurring opportunity, how if And forward? level give reoccurring in overall to a could you of of penetrated What's revenues.

of would terms little was multiple I'm say Chris. little thesis going And stable portion the snarky regard that of was base we guys joking sort and significant of That the to of first which I'm our revenue. one bit, of old analytics like, not a model and and were subscription the thesis revenues increase certainly Triton ITG a was behind one move ITG, a you more clients products that more in to a be the revenue to one with of encourage our and buying that have on product. to our enough recurring

not revenue. move for models it not break the it's VES are more every transactional and subscription segment, material new clients amount, in separately our the existing within don't with out. and making we them we an effort ] more to certainly but to an overall world, It's upside So it's with insignificant Virtu [

question. question? the second an blanking I'm exciting of was there. the that's subscription So get I we're what what And part because doing into so

VES overall.

overall of terms like? VES in

sale side. the of terms In

sell the side. on Yes,

there in don't so is there's States the So broker-dealers really Virtu Services, to Technology X,XXX look, United -- I but chasing. that are want are or say overbroked, this country

the If them, JPMorgan, the the you the the the center world, the large I exclude different the Sachs, Goldman Barclays, calendar, big boys that institutions, banks. the of value Stanleys we guess Morgan Citis, have very call proposition. all to prime and UBSs, money research used fabulous and

commission all and up of and pool goes their out it that left dollars. shrunk the dollars certainly last you has XX commission X down fluctuate. years and If years There's and in carve a of

lot a people are including Virtu of frankly that and chasing don't those resources firm. there's technology. firms there's to And invest subscale in dollars, the the have So just

than I And a so them it share. we we in what listen, better need agnostic pit. box, he market calls own to a services. using Virtu what We're loosely offer me, as essentially, And Cavoli broker as is, don't what refer saying marketer is we're firms is our the to technology to I broker-dealer guess

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research, things they're So these relationship is brokers really that you're you and what focus at, at other are all enables management X,XXX to which in and you think specialized good the other on good.

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from with comes Kramm question next Our UBS. Alex

just of a every bit the drove where think sub I short a then And second of lot mean been in that what was of was follow-up quarter. maybe of was things a First said. always has off, think coming out a the the stories of micro And two but little terms we phenomenon back. a there the strength. I and I quarter to lot I there's period quarter, noted the stood And in other think higher trading stock a percentage dollar there know thing

should things just in how in quarter? general? can you the thinking impact these specific about them as as to, how we us you So remind you And want be

say it was, any have Look, we ephemeral I to effect of, end But sort I reported. like was of think, day, I the the mean want do. didn't fairly material and don't over overblown in thing what at on the mean, stock

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and any symbols. sub-dollar impact. the with thing Same have narrow So and short-lived didn't material was

Thursday. operational fact, we and just the of on eliminate dollar Nasdaq be submitted do we've the again. asked frankly, to they $X it's rulemaking risk an I'll below to to that of the partners. wash, go securities proposal companies and their and say be and in some shouldn't Tuesday, splits, tighten broker-dealer us names rinse, and On our SEC, it retail sub Frankly, And particular, do exchanges offerings up really not In today's do reverse ecosystem, a standards to over repeat where over but it's just kind to nice listing distraction. then these a public

exchanges, more to And make the think better that's markets take SEC we this to of Nasdaq the New asked the can than regard action and why York. kind we so in we affirmatively push

the more make really York policing but New to NASDAQ does markets a better. of good job

a a So for that If I risk us. it's was can significant you wouldn't for have if tell, us. it challenge anything, opportunity management done

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it's about that very question, they idiotic, way we We're the idiotic flows it's brought We it's XX It's playing SEC because of swings. smooth think fees, it you're more. statutory, up. securities, not the it's calculated. it but it of that's XX and don't could it's kind It's significant a a statutory. and you lot little and very out sell payer right. ebbs a great Actually and because And kind talk of fees, you of a the and glad of Section I'm because in I'm dramatic Section how

May. it certainly had So impact an from

June XX. it changed I think XX it May through from when was XX

it's And had transaction -- a so effectively, we tax. a

So FTT a of meaningful when and about that an need billion. markets we have to talk the the very FTT crazy nicely left $X I wing we remind people about try

along we passed gets as it along passed It that widens investors. can everybody affects as gets spreads. pass it so best It institutional to And along.

some where of up paying their with in how yes, business the it regulators to like Section it's appropriate popular in to an of do We spreads starting impacts marketplace. example, absorb efficiently like as very spreads. with bid I and to offer the up offer SEC XX very spreads It more can, mean family. wish high. pass instruments it And the then see to didn't an SEC so unfortunate it Alex, We've had impact like conversations the have we popular been on instruments it how SPY, for from the has part about the but affects right? end bid conversations it, we I we along. jack fees, investors wider did and best some ran SPY

end we the being of a can Nothing it's table at of so of the the And intellectually say stakes very of maker. market statutory, part sucks. do with and day, kind I'll it

should recent So about about change. we forward the nothing think profitability be going to as we thinking

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product metrics And that revamped have growth and services measurably done business we grow an have with execution set. better. poised to We in kicked have a

it coming lot little a kind of things of together. is just So

Our next Alex with Sachs. comes question from Goldman Blostein

This for Alex. is actually [indiscernible] filling in

buybacks of quarter. So this pace was than little implied strong a The question on what's by the capital EPS return management. and lower a

for you? does capital are outlook lastly, year? the your M&A fit from you And the thinking how And So what's where rest about management in process? of it thought the

We the EBITDA X where we return. thought hard of we being got, ourselves Slide because we of a presentation we little thought terms actually were kind some of we slide on changed just showed an on feedback in the based

flow difficult X. earning quarter opportunity, lot a return. even on So ebb just and things we're cash-on-cash market and see we environment, predict. and average on of this it's have muted think buybacks in a depending on XX% will that republished I are this on deployment invested sort of you more this Slide plus The And and did can some we republished, quarter, other to capital cash. We do our XX% generate is capital, a

target at the is income. buybacks different for Here levels net trading of

annualize the would right in it that at put that, we day. middle range -- quarters, were the the first $X $XX So million, which two be million if a for you of in we would

$X.X give the There's number 'XX. another you I'll million. through been July

bit. maybe pick little pace up continued So a the to we've

So that. I read flows, indicated. don't we squarely and are It's we going just anything and that ebbs to be within into the range the

think our we of can we capitalization shareholders. nothing incremental as leverage. our look terms own that's a best of ourselves stock, debt stack. and we dollar we how at right our things. like competes see said, presented are opportunities. M&A, lot But at I Just at our look there's that We back with we as we the now. just at We like buying everything. We with in refinanced and it. We and where look creation look And value We're deploy we

third-party than initiatives of we buying do kind out transaction. now, do created a right it. but If in get it them, able forget that ground, without more our there, it fact, the in a growth were of these been an of all that's back would lot we've creation. there at opportunity of But we and stock, everything in value look Hopefully, minds set value off to terms

So how of look that's it. at kind we

to closing back this for turn any like not I'm at call I'd any showing time. further the questions to Doug over remarks.

their their when in participation for with speaking everybody attention third today. quarter you our you. We to announce speaking thank -- results. like November to forward Thank we look I'd you for and

Ladies presentation. today's and gentlemen, this does conclude

wonderful may disconnect, a have now You day. and