Tradeweb Markets (TW) 25 Apr 242024 Q1 Earnings call transcript

Good morning, and welcome to Tradeweb's First Quarter 2024 Earnings Conference Call.

As a reminder, today's call is being recorded and will be available for playback. To begin, I will turn the call over to Head of Treasury, FP&A and Investor Relations, Ashley Serrao. Please go ahead.

Thank you, and good morning.

the the our and highlights brief update. for who Billy provide today business review will for me call CEO, are Hult, a Joining the quarter

into who Furber, material, Sara will nonpublic of with the review We complying a Our website our results. who will our financial information under to Tom initiatives; and and Pluta, little President, Regulation disclosure disclosing deeper intend some our as growth CFO, means FD. dive obligations use a

differ in statements and that certain presentation forward-looking Information that such, and you with Litigation statements remind release, to of other Statements relate things, or meaning periodic cause events guidance like could the Reform is during future constitute earnings filed the XXXX. or may differ Securities related may expectations from concerning this contained statements. Q&A materially the forward-looking from within factors presentation results I'd reports and as Private results statements. to actual our to, forward-looking SEC. of Act forward-looking among in these to statements the Actual and

call, is on release presentation. data. non-GAAP we including data, Information our Information presentation. including market in these earnings reference GAAP measures as certain today's earnings well and as regarding addition, In measures, to and industry reconciliations industry in non-GAAP our certain measures market will regarding and sources is

call turn to Billy. the me over Now let

earnings is and hold, be first in with strategy believe Ashley. This thank it's and business. Good electronification our I relationships continues our building optimistic great for another the quarter Macro on our deeper leaving pay through about me to trading take to future. our one-stop time call. continues off. offering Thanks, record to fixed morning, income and flourishing as focus debate everyone, a was joining clients quarter shop our you

the yield is and questions year, curve. this on of as of the number ultimate rates level rate U.S., cuts the remain around in of shape Even there consensus the cuts

low to In fact, make for recent sort high X% as as rates most highlighted Jamie money lot a from X%. that can to with the annual Dimon letter as in his spread. of potential as of U.S. range Traders

the on us clients. This of our our to as new Treasury corporates market our also to futures U.S. rXfin with for into algorithmic opportunities selectively with the we we year, acquisition. channel client functionality our have to deepened pending continue complement and of fourth in remains the added and create M&A and focus, with better front use our are ICD capitalizing While growth array offerings organic goal outcomes penetration adding a

first the the into quarterly Diving quarter. saw we The time. $XXX in eclipsed for February in January March as into first million we momentum persisted and revenue

gains improved reported strong risk Specifically, on client and share XX.X% appetite growth basis. a revenue year-over-year activity, drove

expanded and for XXX relative profitability balance growth basis to continue adjusted EBITDA of investing XXXX. the to points We by margins as first quarter

X. yield and credit and growth for being grade bonds were U.S. revenues were driven led and respectively. strong highlight. rXfin credit, by broker. led accounting and Record across primarily growth, Slide to across XX% of by Turning Rates swaps and revenue XX% our were organic government revenues global rates the European and a of across addition the U.S. electronic investment Similarly, quarterly by record supplemented also in share with record market corporate credit way,

ETF challenging repos. our fueled also core Equities business. Money institutional industry markets continued in in record a also hit volumes a growth despite hit by record

and in revenues growth products. market driven were data contract market by our Finally, data data LSEG proprietary

wholesale businesses. interest Treasuries, U.S. across by revenues credit our with led Slide and will and ETFs focus then X. year-over-year, increased on quarter swaps. turn dig update record over treasuries records areas: X Starting U.S. deeper to of I rate by an it U.S. will who Turning XX% to global and and provide our Tom, first institutional into

record growing Our and of gained share plus institutional and of The strong. versus business offering. achieved U.S. Bloomberg. streaming saw We market institutional business share adoption remains indicators a the quarterly RFQ leading of our treasuries

was year-over-year. continues Treasury important more institutional increasing an AiEX be with XX% and XX% AiEX trades daily over utilizing our by average institutional Automation engagement average of XX% with theme up daily to healthy Client trades our U.S. institutional year-over-year tickets than functionality.

featured streaming protocols. across Our our business session wholesale volumes record and

protocols. to Our Treasury recent overall acquisition market of X.X% to share, strong and approximately our complementing start, club U.S. rXfin streaming a is off our contributing

holistic X% While wholesale business focused year-over-year a to revenues, which onboarding the conditions, tougher market industry equities, up they second despite face its central across were deliver saw quarters book volumes. more as on the team Within providers our protocols. challenging the coming continued limit remains ETF highest strategy liquidity on order over our quarterly

Other expand equity our to franchise fruit. to ETF our continue flagship brand bear initiatives beyond

First quarter growth. equity XX% driven strong derivatives year-over-year, revenues were by futures equity up

client are well pipeline the resonate. secular solutions long-term our the capital remains strong across of story, business. just income believe We we not ahead, ETF to Looking positioned in benefits but our to continue growth fixed as equities, on the electronic

to turn will it I over Tom. that, With

Thanks, Billy.

for about closer to revenues AiEX continued volumes. credit. U.S. derivatives industry driven increasing growth European revenue average growth another XX% Turning Munis revenue was X at double-digit Slide XX% produced mid-single-digit Automation by and daily given more look and a XX% across by and growth, Strong to for trades credit, with respectively. record-breaking while were year-over-year surge year-over-year. Credit muted credit Global softer quarter

IG by fully another share record electronic market in share. market quarterly IG helped set block U.S. record We

optimize a institutional to Our scale market protocols of across clients new highs environments. continues engage diverse our to business variety with to of as set execution

year-over-year, continues portfolio trading primary with IG growing yield. high growing ADV strong and off with pay with ADV double-digit Moreover, levels. growth RFQ on XX% XX% over record portfolio institutional both trading year-over-year across to reaching Our rose focus IG

of to Our volume PT more done XX% continue sophisticated comp. with of usage their PT clients get in in our

to towards of U.S. advisers financial turn started over complement XX% volume. in focus as grew Fees XX% trade year-over-year produced to months revenues buying credit All up with quarter have income their were volumes their recent treasuries. billion a record in year-over-year. Retail $XXX almost credit

almost and continues broadening platform. year-over-year to responses number our volumes dealer the XX% of trade Specifically, grew on out on grew team increasing offering our RFQ XX% all the network focused be and The our over year-over-year. all-to-all

number first of per quarter, XX% the rose the In inquiry all-to-all average year. responses by over a

also and increase market share wallet We to our continued makers. engagement with ETF

ADV grew our year-over-year record session another revenue Finally, over and saw XX% quarter.

way our credit opportunity our along with we we to U.S. biggest and have like ample X Looking positioned for a ahead, channels. are we We growth the client runway innovate area, our across long focus remains clients. believe

pre- our improving continuously enhancing client expanding analytics our our protocols and wallet share, and increasing post-trade Our strategy is focused on our and network, experience.

coverage to success and believe the In continue replicate to chip and away year, we force the with have IG quarter, leverage continued not should with. attract our first expand increase clients historically a to ETF be in to able have network we and we later With market collaboration enhanced our Aladdin respect yield, presence this we broaden and our makers. seen presence functionality our our grow had sales all-to-all to we to strategically high

and EM our Dubai opening local the continue expansion credit, Miami new U.S. with in clients. with offices of Beyond engagement increase to in and progress a steady efforts

enhancing functionality for side, we FXall multi-asset On out with on integration build are the package and focused to trading. product our continuing

produced strong denominated combination swaps engagement Slide to revenues was continued X. market global a and and in client revenues partially record share rose environment gains. the X% duration with All grew to XX% Global currencies. driven of XX%, reduction activity. year-over-year market and Strength across Moving offset by in, in EM compression by swaps and share record share an elevated GXX response here quarterly macro to other

protocol. rapidly and emerging Finally, market RFM we progress continue growing make to across swaps a

EM than is revenues the room of we believe electronification. doubled levels Our to swaps grow quarter more first and low still significant given year-over-year, there

picking volume rise our protocol especially XXX% across Our over business. up, adoption RFM daily saw year-over-year swaps European with average

ahead, believe long-term potential Looking meaningful. revenue the swaps we growth is

do broader manual still grow. swaps lot we is global our market help believe market the fixed while there income digitize a the With electronified, XX% to and markets about can we workflows clients'

with that, turn to our me more let in And to detail. over Sara discuss it financials

morning. Thanks, Tom, good and

to otherwise a of performance. unless summary the I will go be year As prior through earnings numbers, Slide provides period, X the quarterly our noted. comparisons all

our international of base the of XX.X% we on and earlier, As across derived we XX% being that million back, recall from quarter, customers basis. XX% in this that a revenues on X basis generated recapped Billy dollars revenue our revenues revenue predominantly March were approximately in quarter, looking saw $XXX constant Stepping average revenue first approximately up with than growth other this daily euros. reported currencies currency XX.X% a year-over-year is at quarter similar months. all denominated of We strongest and

X.X% major XX% on fixed of by trading related XX%. a by of some were dealer revenues up classes asset well down increased the fixed X.X% driven the quarter basis. addition by new fee subscription increase services. were was we X%. third revenues increases our XXXX, our to variable other pricing Our on and total currency revenue reported start of of was driven by constant dealers on customers to disclosed increased fixed the platform X at REITs growth the revenues previously rates primarily revenues and subscription Total and The a as which Credit instituted as fee trading and the increases,

our revenues periodic retail fluctuates technology As tied performed a as reminder, clients. reflects line enhancements for it this to

quarter's compared EBITDA margins. the XX.X% by reported adjusted XXX year to This XXXX when margin increased basis a points of full basis on

trends fees and Moving for key XX of per the Slide on on a million the quarter. to highlight

detail earnings this million You presentation the for quarter. Slide regarding of per additional can see our XX fee performance

primarily cash increase per European per million an government For the products, million. up fees bond X% fees to were in rate due

down in were compression well long-tenored swaps, XX%, per X% as duration. to fees due in an as decline For increase primarily million an

mix For cash X% and high from fees shift munis. decreased credit, million a away to average due yield per

U.S., XX% share in equities, million per and not million U.S. Recall per per fees average share to cash decreased in given for reduction a by increase we traded. due per notional charge fee notional in the traded. an ETF value For

million markets, by higher average driven X%, away per growing towards fee decreased Finally, repo within institutional our U.S. a shift million money from and mix fees CDs business. per

Slide XX and and our expenses. base expense nature level, of to growth to high details continue margins. scalability a us grow adjusted variable our invest for the allows At

expenses due Adjusted a on compensation first a data performance-related for Technology to maintained basis constant a due here. in strategy have and to costs philosophy XX.X% increased quarter increases consistent communicated increased on basis. reported Compensation XX.X% increased and and investments currency infrastructure. previously costs headcount. the and XX.X% in primarily communication We XX.X%

periodic quarter 'XX. due requests relative to a XX.X%, of Professional regulatory first and compliance in fees decreased mainly decrease to the

our support rebound year the to of to we as more organic over time fees professional course growth. technology over expect on the We grow and spend consulting

costs General million the increased of in FX 'XX a administrative and gain quarter a versus as in $X.X of year-on-year. as pickup resulted gain a in decline in a FX well gains 'XX. marketing in due to quarter first Movements the in $XXX,XXX first

Slide in XX approximately and into $XXX to entered recently first trailing for in customary the cash details management closing million, ended adjustments We customary our reached million policy. flow the XX and for $X.XX agreement a regulatory and we position cash capital strong Recall, on free conditions cash acquire reviews. subject with capital $XXX billion to ICD our definitive position pending months. cash equivalents, guidance and return and quarter a

by yields. combination and This Our interest interest balances efficient to cash. of higher due was increased interest the a cash rate million income environment management more $XX.X our of net and driven of primarily higher

earnings With $X.XX of dividend board Class A per this quarterly shares. B the a and declared quarter's Class

for guidance to XXXX. turning And

expenses for strong top to the to the start $XXX previously the expect to our XXXX. trend to communicated end we million adjusted range million year, Given now $XXX of close

modest believe year can investments by last XXXX, to although we capitalize on to future accelerating since growth. support our expansion more will compared be the anticipated expect healthy compared margin continue to drive We to and environment, organic it revenue to we current

progresses spend communicated into our as year our to previously increase range. CapEx the expect We

I'll for back remarks. Billy to Now concluding turn it

Thanks, Sara.

traded hard a occupy what The clients. we important clients real we alongside liquidity remain their important innovate and our be We most estate of to continue have desktop providers dynamic, we the to always can to of boundaries and breathe that and piece very very recognized connecting work push electronically. in live markets

about tech good and busy, and value strategically, the of teams shop sales Our ahead durability one-stop feel road remain our I and proposition.

temporary favorable important strongest to risk banking of April off month-end in XX% year-over-year April, couple revenue be by period. left which the trending due a comparison in With prior driven year in overall by a trading to days, growth revenue XXXX excess regional part days is the environment relative tend in crisis of to fueled

also trading is month days. this more a by few growth helped being Revenue

revenue, Focusing growth momentum in theme. to close we on continues. diversity as The quarter of our daily the average the trending are first a business remains

We credit are seeing bonds, government and mortgages, interest growth rate repos. volume swaps, global strong across corporate

with IG Our high-yield March than higher at IG and share currently levels record are levels. both

on know of focus our expanded Serrao, well; Global and our we Marketing team, and adding Cohen, you all Communications. who executive we As Head leadership recently our future, Ashley Mike

made With these a company, to we future contributions. leaders have impact look our significant on forward and their

valuable look Board years while benefiting I and nearly welcome March of and finance to and also increasing Board of insight to would our X. like Directors, our who her XX Opoku as to also Board's our diversity. experience. from legal joined We Board, the of independence brings forward Lisa industry to Lisa experience

would I my contributed by and my business revenues in partnership quarter, record to thank remarks and our conclude their that for our their Tradeweb. I like thanking to the to quarterly for Finally want efforts clients colleagues at

that, for your will With to Ashley turn questions. I back it

Billy. Thanks,

As questions back question. hop Q&A the ask first a.m. Operator, the to will in to and take at please now our at Time. additional only. XX:XX limit end. end reminder, X Eastern a can Feel you free question yourself queue

Instructions]. [Operator

with Our first the Alexander from of Goldman line question Blostein comes Sachs.

here. see to of all to quite over I quarters. maybe which the diversity and the the zone is from last swap to coming seen interest continues on the not in the guess business rate but I as compression growth Great wanted of trading couple sort be active business, obviously in we've growth, And

about the rest maybe business the bit us help So the growth this of unpack key a from thinking how recent here? little of drivers for you're year and

little know, -- always Alex, if and for the going feel our to that pretty to From regulation to in really picture swaps and for flag start business I perspective, a way of how and and how of sort to step it leverage I'd work Don't like back, just to business going then large market like a spring, that really be paint It when the really in we the a starts bystander, a shape picture really perspective, paint a moving the regulators leader Alex, become the are network. of were you? early but nontransparent good for our plant be And a you would in bit business. I half we on works if with question. were thanks on, direction. build would us. the Happy a the not grow from the Alex, network. leverage clients most a say with regulation the important in opaque, that strongly kind as that very

and consumers very network government to network European you swaps And so always as are in know, fund government us, who we're that the customers has in U.S. active for on the very leverage huge network. side, the that this advantage giant hedge been swaps, market, Particularly of strong of have, mortgage of we swaps clients.

And and invest in regions. then to innovate, invest continue

around we So into lot paid put work with and trading for describe Alex, micro of innovate has have a on the and EM what that protocols. us, as investments we clients off place then

revenue. has driver the share for So and a market big of perspective, from protocol our been driver a market request

and the in X business past those $XXX 'XX going of our good of from business 'XX. the for So million growth factors that feeling really in X making 'XX swaps responsible gone global million alone where to in basically our XX% is revenue are we've $XXX in over trajectory years,

we see via enthusiasm swaps the big still focus big XX% as that quote that lot We have the see still a trades. size a lot is there. we We of business We markets. where partly see a of the done stat voice of for area market wholesale potentia, us. So large as that of

EM, swaptions packages. I of swaps, penetration we solutions multi-asset early and electronic inflation describe then we're the in still across how And think

story to a Alex. going us strong we're thanks So our about a a that been past arrived strongly It's years we've in I paints big continue going the to keep think leadership question, And space. position in picture to very it's business because and over a we're it for that few focus. very tell the for how

Our Piper line question Patrick next with Moley Sandler. the of comes from

going So ICD your on strategy you've the updated an I And entirely think corporates. in should made in about a just to hoping recent may the that, get new a number then to we if little of a bolt-on how be larger adds piece value-add add acquisitions just client I than second obviously years, M&A forward? But segment could ICD was thoughts others.

So targets future? in just tell you to might the your how impact approach could that evaluating potential

all kind good integrate very our news about way Feeling family. this looking yield being And going our very, The firing very, forward. cylinders. in perspective, And the forward things. we're and a you X our want first Thanks of maximizing past quite deals now, our describe This capital right growth -- question. then we the not really much strategy focused very there then perfect full on framed growth progressing on acquisitions, that maybe broker a is our part are, to hands way our value ICD our good have very say for of It's I is is rate to both don't strong and the and really focused to Tradeweb to the I think and but the ability it it, from really from announced the recent foremost. I say And year. organic in perspective potential X well. well. we of with

to blueprints kind on client for experience. the place the Longer-term Increasing improving the view, power. us. These our to continue these company of earnings bets are table, it's always important for

reasons to we're to evaluate it we still future past for recent very, fit lot. across culture there's And for fit that's lead details. growth some feel for respect deals, acquisitions is with is important we cultural there, our how and playbook. clients And concept and become a always the that geographies, to of Sara why it and we one, to strong so continue going feel the about going around us. which the expansion a with the our one of particularly products, year use to very important to I'm areas good we the And kick over

I it say client think Billy What said, overall I the it channel platform, we're strategic And inorganic. focused covered doesn't integration. and does framework and are at market. once what we're on ultimately to Great. That we think underserved the use would obviously, disciplined that just terms closes, I and that then organic an and corporate be going of our will obviously, we a think open really to going have the treasurers our new bandwidth and And us. tools mean is that we fit all making ICD, operationally, also in measured emphasizing digesting. fit well. discipline you change, looking in sure financial said, grow do toolkit for be overall

to we the like there. puzzle the long-term So pieces on different ability of layer

talked say I about one inorganic, the thing other say about think when of about the just I do in tools toolkit. range acquisitions. a we think would we would lot we've

of platform didn't time more full conflict technologies, financial out investments. of partnerships, integration where And researching in in things market want one make a that we to for and goes. building are And we're that in at do just to commitments spending smaller space so look area terms of emerging sure suite that look the across look term we operational much actually that smaller we we bandwidth, do at

you. and So thanks from hear to good question, for the

moment next Thank for you. please. question, One our

from question with Andrew the Securities. next Bond Our line Rosenblatt comes of

in a moderating today. here. your So talked that expansion last you pace the little remarks bit about you bit the prepared about talked Sara, margin call of from a in

expansion kind maybe what state time EBITDA over the opportunity And you see margin? still as see you growth for company rates? for frame Tradeweb So do can margin given what current your you of steady

like like and platform growing. Obviously, you. from our about our hear -- talked to nice I've growing business this, Andrew, still we and is still is feel Great.

can are We form confident we here. grow margins

I is. what of our are too on to it's many early that opportunity steady-state or margin determine still that Given where businesses really the we spectrum, think are quote scaling,

investment, expanding And the Our particularly in, right we're focus term. long see is about think now, we talked new to durable, and over of that a environment is the growth really opportunities. and revenue platform investing profitable the lot interesting great we our the which entering in around in drive I opportunities markets, news new accelerate

talked you've on lot more Automation, although when about investing have opportunities, So areas there. sales you've us like seen credit a in organic us but there's seen as we've of we EM, momentum deploy also dollars put technology other those acquisitions, yield to we we the and or in markets. worker which rates leverage for ICD it capital in to we're investment going be think that continue can ultimately behind whether

So number, know I but I like very is it's early. news it's -- everybody too think just a I specific the think -- good wants

is really investment, several about, think be record I all profitability. What while on areas seen can have business for track I on that care years you've to come. growth we good a these we're is do I about here us our focused clear of horizon and think

us grow and look expectation them these time. all expect trend have around steadily to over you decisions that are should we we margin making the add margins to slowly and particularly so And think decisions, as higher,

be volatile, and this, have And in an I've our lot even control about can of more then base. a lastly, expense over that environment we talked

discretion so and of And a expenses. variable fair bit

allows that confidence of our extra shareholders. have to of for So delivering around bit us that kind

One moment for next question. your

Our line Allen comes next the question Citi. of Chris with from

compression compression swaps in trades? that coming you the rate capture coming broadening you progress Are in customers And kind customers are provide compression from for what trading, of of out are kind any on where trading. interest some progress? risk just if with activity to Maybe circle wallet of making customers you and those I just wanted on to color that could specifically. back on are

hear it's to Tom. Hi, from Chris. Good you,

the and So biggest of volume. and on drive during both risk normal of out old business, notional to large hedge the amounts dealers ebbs players manage course balances. funds, efficient very they they trading yes, compression it and the flows clients tool clients reduce find and compressions derivative are then put kind macro can risk The and a of through

be they to drivers. So continue big

have been number and increasing compression We protocols. broadening out participants of the in the

positive all been very it's So a story.

to clients Now what question significantly our risk with learned relates become is us, compression platform, about most which volumes your that how you active sticky profitable. trading, to that trades very to growing risk been we've are, their and know, as of they've more also

that as Last had to quarter, that X correlation volumes And compression highlighted in very we in XX trading compression have -- investor have time, did in risk significant growth only have as powerful key from charts top last the their well. in chart the well. our our clients some the growth takeaways large also but presentation this not very are volumes

significantly in clients very moved those risk rankings with up in the trading. So us

to that think be and useful compression complementary very swaps a So very protocol to we overall business. continues additive tool our and

next for question. moment our One

comes Voigt line the Kyle KBW. of Our next question from with

out So RFQ both success volume RFQ key growth I And and the being specifically. adoption RFQ on credit prepared the institutional March quarter the of in a in noted trading you in remarks, and side. think dealer you called of driver as

protocol RFQ it just driving the resonating you Is end across could both price, dealer and capabilities Just more segments? wondering institutional with broadly that right why What talk is outsized with now? if clients platform. or success on growth the you're these else something speaking, about having

in question. world Kyle, like talk Billy. between the those trading about all-to-all in sometimes. we And Yes. to It's really good sometimes pick things. Because way right really trading kind you of of but like that feel portfolio our get those when kind of gets right? now, opportunity tangible you you to credit, It's as headlines, flow is straightforward be up kind right foundational of and feels credit it's trading. really well, are it's like biggest a pretty RFQ a the big protocol a know have headlines it the And in divided

So huge, a focus that's for huge area of like us.

world, has our this think It's We're of the expands for so of us. our that part cross-sell years, I we've and grow volumes pay stronger to adding that efforts way. in deeper and side clients. we RFQ And network first institutional And way we And now RFQ and then there around trading, things all-to-all what the getting a that's where building our our you been, for a with growth very a about, business, you've off. network. value relationships -- about pretty from getting foremost, when area that is, adding perspective, up wind straightforward of been of as right, think to in then kind say earned really type been simple and kind value happens growth like portfolio around sometimes volume. of that big going

is is a sort recent which of us. market initiative a in RFQ, Dealer for change structure more

momentum dealers, in the given still have stages with But early the feel, banks So protocol. that the with promising. relationships there we quite we the is of building that

almost So numbers, activity XX% the in for second almost increased your for quarter. answer XX% first a question RFQ dealer RFQ on some us, to

some really we're So getting into big numbers.

and us, potential. technically clients, for of with specific some in the start RFQ -- lot spoke of of some of our I little start And out quite about on all point client continue you, you've this you terms portfolio kind you And added on continues of efficiencies real of get all-to-all get the for activity. the a investment of emphasize the that area terms It's we've market. in trading us momentum liquidity of enhancements talked sudden, those side, some kind make growth to you big the to after expect it a to resonate of a of broader to some we to trading, to and then rounding would that bit that huge the a of kind and sort investments make these

thanks your for question. Kyle, Appreciated. So much, very

Barclays. from Vincent Our comes Mendez line of the with question next

M&A. back, Maybe I question I think think circling Patrick's on with

update business? to sort do an on asset now. now for little can asset? rXfin, what owning futures having of give sort thoughts maybe you that trading can a accelerate the from owned bit on more that Any was access Tradeweb updated upside about quarter time potential to the Just a had of having the you've workflow, What

Billy, about remain nicely growth, and this we our very which it's Sara the for So complements mentioned, businesses. excited opportunity as existing asset

the U.S. our the to about in share. to start strong acquisition Treasury off already is contributing percentage a mentioned As market prepared very X.X and remarks, points

volumes significant starting very that's So X. day

with Over working time Tradeweb Tradeweb clients into rapid an that will client the to before last onboarding infrastructure be growth on got ahead already existed the which on the base, quarter, rXfin client we to rXfin, we very our spent more full a of add engaging lot involved. integration will and of pace focus

a there's to We futures. have across side. the on treasury now and prospective for we're a the on And client cash getting clients momentum orders execution treasuries feedback from positive. capitalize that market-leading existing of lot us technology and that's demand multi-legged of offering clients extremely allowing So is intelligent growing

bond This to futures complement a products. of isn't the rest to U.S. access rX

us now space. that are. heard about to ways we talking you finding And think I in get involved

on into and excitement agenda. question U.S. your swaps and likely as to expanding lot a cash potentially include with what's on our outside looking well, forward, As the this far markets next of acquisition there as is plans there, and ahead the European new futures of

in and relatively the expansion growth existing near future. the see question. Thanks the for coming with international in we the U.S. So products

the question with Cyprys comes next Morgan of line Michael Stanley. from Our

that customers have remind I circle have is the Aladdin hoping do rate sort of terms to any changing you learned mistaken. integration that on going exactly integration And to on credit set? be if the us progress if of wanted business. you what in they ago, think the to access for us back the opportunity And can Maybe Just update occurred previously. how there's about there. will years just to not was lessons the I'm on from didn't access what the side

as one that well. take I'll Sure,

working made of component great through Aladdin our plan of strategy particularly significant the and So of credit our partnership phases and progress in important X a of part an the our growth been high this yield. remains expanding and network, integration. have We've

to half dealer So Aladdin. we was the inventory allows in that Aladdin X, clients we into also Phase And completed, on respond Tradeweb data their to from dashboard. last within year, completed auto that in will X, Phase to and and focused of from and second be on X, our recently an Aladdin automation access and Phase then Aladdin getting initiate in that inquiries able RFQ clients right use tools.

volumes, functionality. revenue we we the market all this we Tradeweb this as progression over be to within expect, as expect we and XX expect share, -- steady months. for we're far us So of a be clients as and to Aladdin forward And results using the with phases on next progressing completed more move

integrated on learned managers And and that the is in expecting years our growing them we're and lesson volumes. is in providing to important main That's ago. seeing yes, to We access really credit what easier learning partnered with Thanks clients number in question very rates. being we a and the So lessons many your for of as there asset those is question. well. learned, a with for and and us beneficial Tradeweb tool Aladdin rates Aladdin for that

Our next question comes of Dan from Jefferies. Fannon with the line

of your high had and with of share And remarks success maybe the mentioned that, looking you doing replicate the your invest in potential I Tom, what but think think to in you, elaborate you Aladdin of on expect period to sticking you're as high on gains? grade about can previous time things response you part guess a the yield. to and really other you success kind prepared gauge and I

Sure.

dealer goal that. liquidity, build ultimately, out the doing been salespeople yield, high and to the increase on build we're client in help they're we Billy and to can that. mentioned, the clients system, number network, want they in been but will we out have footprint, getting see of have We're client in making network, lot the to the of come a out and and responses is building in that want progress. response to hiring stats the and continue So the also you they notable

rolls of the the volume. As over boost continue as mentioned, Aladdin I out, year, to will functionality high-yield course this

time. to getting but and expect far this and clients there. continuum, there It's is time over no first And to more when very there's It's getting tackling. and blocking sustained Tradeweb over a share grow we done, time are we're come when we it's our as to for frame a as we're do the to continue effort. So and

what we're So that's the question. do. going to Thanks for continue to

One moment for our next question.

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

credit. on question and pricing Our is

term? how with your And a So over more topic? the is are competition buy-side thinking relevant clients, in pricing to becoming this you here as in discussions long intensify, about continues credit

pricing of with more it's that reality. part focus, more It's job us Thanks about say think that functionality, our with we was to big just Aladdin was we when starts are part this a information if very and a really of execution We'd of past be goes and to flow and sort of And fee. on analytics, flow this value, describe much. being over, said, about say the lot to and this the kind talking it clients. didn't efficiently main always when stretches blunt that their right appreciate in to isn't how important It's information clients It it Tom pre-trade right? I do would that OMSs. way, it's way. like crazy Craig, it Billy. be a intelligently. but liquidity of but we for And provide, that not of focused able this conversation being call the to the say That right? Clients very

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line the from Ken with comes Worthington question JPMorgan. next of Our

How On and to connection managers Tradeweb to Ashley. seems no-brainer Tradeweb needs for business part ETFs? of done of that in ETFs a And what part with win high-yield Congrats, big high-yield, ETF ecosystem the for to and a currently? are like me rebalancing is trading the How high-yield. happen high-yield more market?

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all results it's have on promising, forward. big for So we're quite of Thanks things. going focus The focused been a and those part the the question.

next our please. for One moment question,

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

been but of to just have new of you coming any regulations on paradigm. and one around that are maybe potential of it's expand Tradeweb your changing views a answered, major years and for opportunities do the new way how still the see in on out, asked realize with there and your potentially I clearing but Most business treasuries, that for you couple landscape

Brian. Sure,

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and So that that's this commented big part perfectly. of a

of next Kramm question the comes line Alex with Our from UBS.

the Just wanted to had about RFQ. come we back discussion on earlier

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stuck this to you've a because been just still if looking at it and right, bit. we're to is a do lot there's what like there So is wondering do little seems

rectify maybe little a just that bit. So

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It's always focus it's a sort we have. of that pure good a So question.

for moment One next your question.

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

It's Elias from Craig's team. Abboud

completed X completed. integration Phase since that for earlier all-to-all mentioned which You volume was was that wondering institutional of in all-to-all could the if you've trading. seen integration, I the was Aladdin you've you quantify inflection

road. into the from X maybe results could what peek Phase like look down can So get a we the

Yes.

year but definitely impact full progress or that and have bit don't gains a experiencing Thanks overall you significant year still out I growth say, we been contributing the I year, to last It's next the later think -- We are that the been see of years. more it has too these into see we'll say but we've to that online. progress. market over soon, question. break the So we safe for think a been there. coming and share little I'd to made that, this steady what's it's and have are the And X.X making disclose because see effect We more. actually

turn the Billy remarks. Mr. call I'll And to closing this Hult now for back over portion. Q&A concludes our

us morning. free and always questions, Ashley all team. you Any obviously, out very feel the to Thank to joining follow-up for much this reach

home. little you. is have Sameer, know everyone, who also Thank with to We Congratulations of great baby and end want one boy a our a to Sameer, a at who congratulation had teammates listening day. to

Thank you.

conference This for call. Thank your today's concludes participation. you

now You have disconnect. a day. wonderful may Everyone,